HPDE insurance
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I'm about to get track insurance for a DE event this December and have looked at Lockton and RLI.. RLI seems to be cheaper, but either basically cost me more than then event itself. Ho hum. The one thing I have not found on either site was what the 10% deductible means. I assume it means the first 10% of the value of the car, not the first 10% of the damage being repaired. Can anyone confirm?
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Here is a tip, but first, are there any options besides Lockton, On Track Insurance and RLI?
The tip: Nationwide Insurance's current policies exclude use in a track environment for "racing, preparing to race, or engaging in speed contests." Thus it does cover HPDE now, though my agent tells me the policy will change in 12 - 18 months. We changed from Farmers, a suck-*** company, and Nationwide paid the full claim when my wife's turbo Miata slid over coolant dropped by a Corvette and was totalled into a wall. Off track, they covered a total loss to a BMW X6 that got water in the air intakes and froze the engine. In both cases, the adjusters seemed to be going out of their way to increase the settlement! Best of all, Nationwide saved us enough on premiums that we bought a new tractor. This all may be that it is a mutual company, not a profit-driven one. I sing its praises when I can, so HPDE coverage at no extra cost, and probably lower premiums than you pay now.
Back to special HPDE insurance and this post. I'm getting a track car that Nationwide won't insure at all, so I need both regular and HPDE policies. My wife get the Cayman S as her new track car and we'll occasionally swap off.
The tip: Nationwide Insurance's current policies exclude use in a track environment for "racing, preparing to race, or engaging in speed contests." Thus it does cover HPDE now, though my agent tells me the policy will change in 12 - 18 months. We changed from Farmers, a suck-*** company, and Nationwide paid the full claim when my wife's turbo Miata slid over coolant dropped by a Corvette and was totalled into a wall. Off track, they covered a total loss to a BMW X6 that got water in the air intakes and froze the engine. In both cases, the adjusters seemed to be going out of their way to increase the settlement! Best of all, Nationwide saved us enough on premiums that we bought a new tractor. This all may be that it is a mutual company, not a profit-driven one. I sing its praises when I can, so HPDE coverage at no extra cost, and probably lower premiums than you pay now.
Back to special HPDE insurance and this post. I'm getting a track car that Nationwide won't insure at all, so I need both regular and HPDE policies. My wife get the Cayman S as her new track car and we'll occasionally swap off.
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1,853 Posts
Correct. $50K car, 10% deduct. If you have a $7K "off", you pay $5K, the ins pays the remaining $2K. Your 10% comes off first.
Not sure if track ins covers damage to the track. The track WILL bill you for damage. They tell us in the driver's mtgs at COTA - if you slam into the safer barrier, the first person on the scene will not be a corner worker. It will be a COTA rep with a bill for the barrier.
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I know that HPDE insurance doesn't cover liability, i.e. me hitting someone, since everyone is responsible for themselves, but does it at least cover someone hitting me. That's really the main thing I care about insuring. I can live with my own fault causing me to pay out, but I want to make sure that the insurance covers me if someone messed up a pass or doesn't check their mirrors turning in.
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This is not true, at least for Tennessee. Insurance policies vary based on state law. I have read my full-text policy in TN, and it excludes any incident occurring on a racing surface, period. I guess it is possible other states vary on that point, but I would read your policy if I were you; I bet the agent is wrong.
OnTrackInsurance is good. Great response time, easy to work with, and handled my very nitpicky question/concern about specific elements of the policy language professionally (I deal in agreed value policies frequently in my practice and got pretty nitpicky). I have not had a claim (knock on wood?), but folks on RL state that they pay out just fine.
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154 Posts
It is generally per car per event; co-drivers may be named on the same policy and both be covered. I have done this in the past.
As far as I know there are no Insurance companies which cover HPDE in their normal policies. Hence specific HPDE coverage which can be purchased at a premium. The language that you cite is so vague that it could easily exclude any high speed event. The language that you want in a policy is one which specifically covers HPDE.
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Exactly right, but even beyond that, nearly all have specific exclusion of HDPE ("any incident occurring on a surface used for racing," etc.) I have read my Nationwide policy and can confirm it contains that language, which would actually even exclude coverage if an incident happened during parade laps at lunch!
What concerns me is that there are some who cite conversations with their Insurance agent which confirms that they are covered. Just wondering if the agent will recall that conversation when there is a $60K+ claim. Moreover, the written language in an Insurance contract will always trump someone's recollection of a conversation.To be fair Insurance rates are calculated based on a vehicle's public road usage where the maximum speed is 70 MPH in most areas, and not on a track were 100 MPH + speeds are the norm.
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Yup. Many agents probably don't know. An assurance from the agent verbally is basically worthless when the policy clearly excludes coverage. I wish I had gotten in the sport back when standard insurance covered track! But OnTrackInsurance works well for me so far, albeit at a price equal to 2-3 months of road coverage per event.
And the premium that we pay for HPDE is appropriate given the increased risks. If you go back many years ago, there were no racing exclusions in a typical policy. Today there are exclusions in every policy that I have read. Apparently the popularity of HPDE has risen a great deal in the last 20 years, and Insurance companies began getting too many claims for damages which occurred on race tracks.
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Does anyone know if there is a "penalty" from underinsuring the car (apart from a limited payout). For example, if my car is worth 70K, could I insure for 60K to save some premium cost.
The car is not financed, so it wouldn't be a disaster if I receive less than market value in the event of a total loss.
The car is not financed, so it wouldn't be a disaster if I receive less than market value in the event of a total loss.
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There shouldn't be an issue with under-insuring. You've decided to cover the uninsured cost. They don't care. They're just on the hook for up to $54K in your example.
I have on of my cars through Hagerty and they offer track insurance as well (I think through Lockton) for my other car, it's a little cheaper than going straight with Lockton if I recall, and they cover both my wife and I sharing the car and an instructor if one is there. Haven't had to use it yet but I do get it each time.
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I use OnTrack, and I think they stipulate at least 70% of value.
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