NY Times Article on Track Day Insurance

Car Insurance May Not Cover You at the Track By ROY FURCHGOTT Published: October 17, 2008

IT’S no secret that insurance companies don’t like the people they cover to drive fast. So it shouldn’t be a surprise that the industry has been removing a policy loophole that insured drivers on racetracks.

That has left weekend warriors uninsured if they participate in track days or attend high-performance driving schools. Jerry Kunzman, executive director of the National Auto Sport Association, said that participation at its track events had jumped fivefold since 2003 and that many of those drivers had no idea they were not covered..

“Maybe 25 or 30 percent have done the research, the middle third just assumes they are covered, and the top third just don’t have a clue,” he said.

What’s happened is that many insurers have redefined the term “racing.” Policies have long had exclusions for racing, but it was defined as a “timed event.”

High-performance driver education neatly avoided that definition. Although cars may take laps at top speed, they aren’t timed.

Full article: http://www.nytimes.com/2008/10/19/automobiles/19INSURE.html

Some drivers reduce their exposure by getting an inexpensive track car. As an insurance underwriter for Chubb insurance in Whitehouse Station, N.J., you’d think Eugene Lim would be averse to risk, and he is. But he is also a driving aficionado who is qualified as a high-performance driving instructor. After 40 track days in his Acura NSX, Mr. Lim discovered he was uninsured on the track. So he bought what is essentially a disposable car. “When I got really serious, I bought a turbo Miata. Six thousand dollars would still hurt, but it’s not my NSX,” which was worth about $45,000.

And the moral is: don't track a car that you aren't prepared to ball-up and write off.

The other moral is: Miata.

So much for taking it to the track, huh?

MitchellC wrote: So much for taking it to the track, huh?

The trick is taking it off the track.

Yeah Mr. Insurance Adjuster, I rolled my car 3 times driving along this boring ol' road...

I'm sure that works: Gosh, I dunno, I was just driving my Z06 along the road here outside Hallett, OK, and this darn old Tire Wall just up and jumps right in front of me. I was lucky to turn and only hit it with the side of the car.

Cheap Car + Nothing but Liability Insurance = No Problem

Dr. Hess wrote: I'm sure that works: Gosh, I dunno, I was just driving my Z06 along the road here outside Hallett, OK, and this darn old Tire Wall just up and jumps right in front of me. I was lucky to turn and only hit it with the side of the car.

Happened almost exactly like that at an autocross nearby a few years ago. Brand new Z06 + 18 years old + 10" high solid granite curbs = major oops! IIRC, he managed to drive it off the lot on a couple broken wheels and suspension pieces and called roadside assistance after the autocross ended for the day. I assume he cleaned the numbers off the windows first. As much as I hate auto insurance companies, I hate fraud even more.

Scott

When I worked in racing safety equipment sales, so many customers would tell me "oh, nothing EVER goes wrong at HPDE. It's not racing..."

Heck, even before the redefining of "racing", they would cover you, and then either drop you immediately, or when your renewal time came, depending on the carrier.

When I had an instructor ride-along at Hallett, I had 'dis guy.' He was good, but he was like "punch it punch it punch it punch it" coming out of the turns. I know my car and I know when the back end is about to come loose if I did that, so I would punch it, but feathered a bit until I had it going straight enough that I wouldn't spin around. We have a guy in my club that had a Z06. A couple HPDE's prior, he was driving with an instructor ride-along and said "The guy said 'punch it punch it' and I punched it and the thing came loose and we went sideways right into the tire wall." I don't know if it was the same guy or not, but I could just see him in a 500 HP V8 instead of a turbo 4 cylinder yelling "punch it." The Z06 got some body damage in the quarter and door. He did not take it outside and call the adjuster. I'm not sure if he had track insurance on it or not, but I know that track insurance was discussed in our club. Our club President-for-life (he was elected when he missed a meeting) is a lawyer.

Maybe Iv'e got a different attitude than many (though I doubt it) but if I wad up a car on the track...it's on me. Ya pays yer money and ya takes yer chances, right? I don't think the "oblivious" folks in that article are truly the norm. I think folks are smarter than that...but maybe I'm naive?

Even if another guy pulls a boner and I end up on the short end...that's the way it goes.

Granted, I've never been out on a roadcourse and done any racing...but the reason is simple...I can't afford to put that much money into a car (at this time) and go tear it up. I CAN afford to buy $100 jalopies and crash them around in a field with a bunch of other $100 jalopies. Health insurance hasn't denied any racing participants that I know of yet ;)

Heck...I don't even have cars nice enough to carry full coverage for the street...who am I to talk?

Clem

Dr. Hess wrote: Our club President-for-life (he was elected when he missed a meeting) is a lawyer.

Isn't that how they're ALL elected?

Dr. Hess wrote: When I had an instructor ride-along at Hallett, I had 'dis guy.' He was good, but he was like "punch it punch it punch it punch it" coming out of the turns. I know my car and I know when the back end is about to come loose...

I'm still not sure about that on the Miata and I spun it twice at the PCA Time Trials last weekend trying to figure it out. I don't think I would be having that much fun with a New Miata if I knew I had to keep making payments on it after stuffing it.

With the Esprit, I'm lucky that it is relatively hard to spin. It lets you know when you've pushed too hard and gives you a chance to back off and recover. Unlike the MR2 that was "more more more more spin." I spun that one a couple times at Houston area autocrosses there in Texas City.

My philosophy has always been that if you can't afford to throw it off a cliff and walk away, you don't need to be taking it out on track. Things can and do happen, and its much easier to have a disposable car than to worry about insurance for track days. I believe this a recent thing, as I never remember hearing about it in the good old days.

That said, I've personally witnessed at least three cars that I can remember totalled at autocrosses. Inexperience and big hp aren't always good ideas even there.

Snowdoggie wrote: Cheap Car + Nothing but Liability Insurance = No Problem

I took out the 'nothing but liability' and just bought a dedicated track car. Soooo much nicer!

I can buy in to the notion of "don't track it if you can't afford to stuff it," but what is the etiquette on causing someone else to stuff it?

Say you spin and shoot back across the track backwards, either hitting someone else or causing them to go off-track to miss you? What if you overcook it on the end of the straight and punt someone off? What if someone inexperienced points you by, and they get rattled being off-line and go off?

HPDEs are a mixed bag when it comes to participant experience. If you assume the risk of stuffing your own car, do you also assume the risk of someone else causing you to damage/total your car?

If someone damages their car as a result of your actions, are you liable to pay for their car or did they 'pay their money and take their chances?'

I've actually never been to an hpde where somebody didn't demolish a car. A Lotus elise died on my first one, a guy with an integra blew up his engine (no trailer) on my second, on my third a gto kissed turn 10's tire wall right before a viper (11 days old or so) found it's way into the woods after turn 9 at summit point, and at pocono north, my instructor managed to find his way into the concrete barrier on the trioval.

Lacy (my miata) was an initial investment of $100. While it as a lucky find, it took some work and money to get her to where she is today. While I'd be disappointed if I wadded her up, I would still be able to drive to work on Monday and not have to keep making payments on a car I didn't have. I'd build another then.

Tyler H wrote: I can buy in to the notion of "don't track it if you can't afford to stuff it," but what is the etiquette on causing someone else to stuff it? Say you spin and shoot back across the track backwards, either hitting someone else or causing them to go off-track to miss you? What if you overcook it on the end of the straight and punt someone off? What if someone inexperienced points you by, and they get rattled being off-line and go off? HPDEs are a mixed bag when it comes to participant experience. If you assume the risk of stuffing your own car, do you also assume the risk of someone else causing you to damage/total your car? If someone damages their car as a result of your actions, are you liable to pay for their car or did they 'pay their money and take their chances?'

I think that if you cause another to damage his car, proper manners might cause you to do whatever you can to help him. If most of us end up causing another guy's 911 to fall in love with a conrete barrier, however, I'd say he's boned.

In other words: no, you are not liable for damage you do to others' cars.

This is the scenario you need to accept with tracking your car:

If I am halfway through a high speed turn, and hit a sudden large patch of fluid that sends me off into the tire wall, will the results be affordable?

The answer should be yes. This exact thing can and does happen. You can have just as much fun on a track with a $1500 E30 beater as you can with a new Evo. You'll drive so much closer to the limit with the $1500 car too. Unless you're a fool with bags of money.

This is exactly why everyone needs a dedicated track car.

...incidentally, I have a dedicated tack car for sale. 96 Miata, cage, hardtop, seat, track ready suspension. PM me for details.

I treat my car as if I have no insurance. Heck my policy is such a joke, there are many situations on the street where I'm not covered. In fact if my insurer found out I did autocrosses or any type of event they'd cut me off.

Also, does anyone else see the hilarious irony in buying a high performance vehicle you intend to use on a track and then not taking it on the track because it might get wrecked?

chknhwk wrote:

Snowdoggie wrote: Cheap Car + Nothing but Liability Insurance = No Problem

I took out the 'nothing but liability' and just bought a dedicated track car. Soooo much nicer!

and if you ever do stuff it into a ball, you can pull the parts you need for your next track car and sell the rest on e-bay.

I have always believed that the fewer insurance companies and finance companies you have to deal with, the easier your life is going to be.

Snowdoggie wrote: I have always believed that the fewer insurance companies and finance companies you have to deal with, the easier your life is going to be.

+1

I don't expect that I'm insured at events. While it would certainly be a huge blow to my "racing" budget, it is something I could survive financially. I won't necessarily have a car to replace it over night, but I'll still get to work on time using the daily driver. I'm also a big fan of having a cage in a car, that is going fast enough at an event where it can be destroyed. I draw the line beyond autox though.

OK, you guys are all talking about the damage to the car. What if you get damaged at one of these un-sanctioned (non SCCA, NASA, ect...) events that are popping up everywhere at racetracks?

I was told that because it is a drivers education event that you would be covered by your auto insurance which also takes care of your medical in an accident. I guess the person holding the event has insurance, but I would not trust their policy to cover my injuries and that is why I now stick with sanctioned SCCA events and have done NASA in the past. They have established policies for medical coverage.

Oh, and as for the car - just be able to throw it away financially and mentally.