Insurance

Let me start off by saying this, I am an insurance agent, however, I am not giving legal advice, only information which I have gleaned over the past few weeks while checking my options for insurance for my race car. I am not endorsing any company, nor do I represent any of these companies, nor do I get any commission whatsoever. Having said all that, here’s what I’ve found.

I’ve carried coverage for my race cars for the last 7 or 8 years. If you are not doing that you are foolish. The cost is nominal and the risk is huge. I obtained quotes for $125k on the car and $15k on tools and equipment for anywhere from $1200 to$2000. Different agencies write thru different companies. They are all written as an inland marine policy, which is essentially all risk coverage with a few exclusions (ie when the vehicle is on the track) Most homeowners policies do not cover racecars or their parts.

I have been concerned about liability though, as that is the really big exposure. NHRA and IHRA both have liability coverage for their member tracks in the amount of 1 million dollars, as well as the member tracks are required to carry coverage as well. If the track you’re racing at is not sanctioned, you’re pretty much on your own, unless the track has insurance. (Not likely, since nobody forces them to have it)

Important!!! One thing I did find out is the waiver that you sign when you go in the track is not to protect the track, but to protect you. When you sign, you become an additional insured under their policy. So instead of signing as McLovin or Bozo the Clown, you should sign your name.

Also claims such as negligent rescue track debris such as antifreeze or oil that wasn’t cleaned up apparently do get paid as well. Generally, the largest claims are paid to racers. (This surprised the hell out of me) I have an interesting article from an ins publication. If you pm me, I‘ll email you a copy of it

I did find a company that will do a General Liability Policy for your race operation that covers accidents in the pits, and also at your shop, etc. for $500 for a million dollars.

Also, there is coverage for medical expenses for participants that are NHRA members that are pretty extensive and worth being a member even if you hate NHRA.

Here’s a link to the NHRA website that describes the coverage.
http://www.nhra.com/insuranceinfo.aspx

Please do not just take my word for it. Do your own investigating into what is or is not right for you.

 

Thanks for taking the time to post.

It's interesting that you posted "Also claims such as negligent rescue track debris such as antifreeze or oil that wasn’t cleaned up apparently do get paid as well. Generally, the largest claims are paid to racers. (This surprised the hell out of me) I have an interesting article from an ins publication."

Back in 1998 when Pete Swayne was driving my car Pat Austin lost the front snout off his Whipple Blower near the end of his run, pulley and all, at the national event in Phoenix. Even though it was known by the safety crew at the end of Pat's run they never looked at the track. It was sitting on the finish line and we were the next pair. Pete center punched it at almost 250 miles per hour and it did about $6,000 worth of damage to the chassis, fuel tank, dry sump tank, it tore the front of the body up big time and nearly opened up the oil pan. Every lower frame rail had to be replaced and it ended our weekend.

I sent a cover letter to Graham Light along with a copy of all the invoices for repair asking if this is something someone besides me should be responsible for. I got a letter back from him basically saying he feels my pain, but while we should all admit the safety crew does a great job 99.9% of the time there is always a .01% chance they'll miss something. And, he stated that when we take the green we have accepted responsibility for the condition of the track.

I sent a letter back stating that if racers do assume responsibilty for the condition of the track then racers should have the right to drive their duallies down the centerline to inspect the track prior to each and every run when given the signal to fire or before accepting the green. I know that isn't practical because the events would take two weeks to run with everyone doing their own track checks.

One thing I noted in the letter was when we went to talk to the guy in the safety truck at the finish about it we found him in the middle of a long conversation (during several pairs of cars) with a blonde who happen to take the time to lean into his truck and talk to him. Unless he was alerted to something by radio he couldn't be bothered. His distraction was noted by others watching at the finish line who saw Pete hit the pulley, too. They wondered why no one walked the track to retrieve it.

There seems to be a better awareness now by the safety crews and I appreciate that.

RG

 

Yeah, the standard answer has been "assumption of risk" but if you get past NHRA and to the insurance company to file a claim (by contacting them directly) it looks as though the old "assumption of risk" may not hold as much water as I use to think.