Five Common Track Day Insurance Questions
We’ve recently been sponsoring a number of track day events, and with that comes a lot of requests for quotes for track day insurance. It also comes with a number of questions about track day insurance. We’ve complied a list of some of our favorites. Questions are from actual customers and prospects, though they may have been paraphrased.
We sell insurance from multiple track day insurance companies, and each has slight variations. Also, with blog posts like this, the information should be taken as general advice, not as specific suggestions. If you want to discuss your policy, or a specific policy is detail, we’ll be happy to discuss it with you, even if you didn’t buy your policy from us.
So, let’s get to it. Here are some of our favorite questions and our answers about track day insurance.
Q: Is Fire Covered By Track Day Insurance?
A: This was a great question! While it may vary by policy, most policies we’ve reviewed indicate any kind of damage and it’s impact should be covered, as long as it’s caused by a collision. However, fire caused by mechanical failure (or non-collision) would likely not be covered.
So if oil leaks all over your engine, catches fire – potentially not covered. Get hit and a fire starts, likely would be covered. Obviously, what is or is not covered is in the details of your specific policy.
Q: Is Towing Covered By Track Day Insurance?
A: While this is definitely not universal, we were impressed to see that some track day insurance policies provide towing coverage in the event your car is undriveable. One company offers up to $10,000 in towing, meaning even if you were at an out of town track day you may be able to get back home, or a shop of your choice, without paying anything additional.
Of course, the specific terms are going to vary based on the policy.
Q: Is Track Damage Covered By Track Day Insurance?
A: Almost every track day event starts with a drivers meeting, and most remind you that you are responsible for any damage you do to the track. In fact, many make a point of telling you they’ll ask you to pay before you leave if you hit something. Damage to the wall, tire barriers and even re-grading the grounds just for going off track could all be considered track damage.
The vast majority of track day insurance explicitly excludes any form of property damage, including to the track. This mean you’ll be responsible for paying for the damage you cause, in addition to any costs or deductibles related to the damage you do to your own car.
However, there are some options for obtaining liability insurance, which will generally cover track damage. First, some track day insurance carriers offer optional liability insurance with their physical damage coverage. While these policies tend to have higher deductibles and won’t cover minor track damage, they can help avoid the costs of a significant damage.
Also, carriers like Hagerty offer add on coverages for your on street insurance that provides some coverage for track damage, debris cleanup and more.
Q: Am I Liable For Damage To Someone Else’s Vehicle?
A: This one is definitely murky. The standard thinking is that everyone accepts their own risk at events like this. And there is some truth to that. Most regular car insurance companies will likely decline to get involved in incidents on track because they are generally not covered.
However, when injury or substantial loss of property happens, just because the insurance companies won’t get involved or there were waivers signed, doesn’t mean that someone won’t try to claim damages. Of course, this isn’t legal advice whether any case has merit. What we can tell you is that the majority of track day insurance policies are not going to cover claims made by other parties.
Also, as we mention above when discussing paying for track damage – liabilities can include damage to track vehicles. Without specific liability coverage, that would not, in most cases, be covered.
Q: Do The Deductibles Work Like My Normal Car Insurance?
A: Nearly every track day policy includes a deductible, which works just like the deductible on your regular car insurance. Track day deductibles are typically 10%, though there are options for higher, usually to 15%, which can be used to lower the premium. The lowest we’ve seen is with annual track day insurance policies that go down to 5%.
When buying track day insurance though, if you are buying it expecting it to cover a bent control arm or wheel, you will need to factor in the deductible. Depending on the value of the car, smaller claims may mean you are still shouldering a lot of, if not all of, the financial burden.
Conclusion
Our goal with these isn’t to tell you what is or isn’t in your policy, that will depend on the carrier and the policy. They even change over time, so don’t assume the policy you bought for years has never changed. Rather, our goal here is to give you questions to think about. Your track day insurance likely covers more, and also less, than many people think.
What we often suggest is think about what is important to you, and ensure you are getting the coverage that best fits your needs. Track day insurance is often so transactional most people don’t think about what they are missing out on until they need it.
Informational Purposes Only
As with all of our blog posts with tips and suggestions about insurance, these are intended as general information. The specifics of your policy, state and carrier may differ. The information in this blog post is not intended to be formal insurance advice. However, if you’d like to talk to a licensed agent about your specific needs or questions, get a quote. Always read you policy carefully.
