The dark world of car insurance and track days...

"isocuda" (isocuda)
10/17/2013 at 11:17 • Filed to: insurance, track day, racing, car, protection

It's every drivers' worst nightmare: busting up your pride and joy on a track day. In today's economy with modern insurance policies, you'll have a snowflake's chance in hell of making a successful claim on any incident that occurs on a race track. This reason alone deters many would be fast-lappers from the fun of track days, but insurance just for this kind of thing does exist. It's actually not a brand new concept either and the guys over at !!!error: Indecipherable SUB-paragraph formatting!!! did a great write up on it with an emphasis on !!!error: Indecipherable SUB-paragraph formatting!!! .

Check out the article here

Lockton Motorsports: HPDE Insurance

Edit: Given the valid discussion about alternatives to taking your prized sports car out on the track if money doesn't grow on trees at your home. I was going to mention my other !!!error: Indecipherable SUB-paragraph formatting!!! , but given it only pertains to the east coast I left it out. Plus I didn't want to cross-post a repost that I was posting......

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DISCUSSION (20)

ddavidn > isocuda
10/17/2013 at 11:19

Aw sad e36 m3 crashed :(

Casper > isocuda
10/17/2013 at 11:20

Hmmm, all the track days I have been to around here have offered the daily insurance. They just need the value of the car (they don't care, it's just to determine max payout and fee) and a huge waiver about minor damage.

The reality is that you shouldn't race something you can't afford to lose. Even if you don't wreck, a catastrophic engine failure that takes out other components and does body damage will total many cars as well. It needs to be considered that car may simply explode while driving on the track.

Tom McParland > isocuda
10/17/2013 at 11:20

Great post very helpful info!

It's a "Porch-uh" > isocuda
10/17/2013 at 11:21

That's why I bought a "cheap" race car. Not taking my nice road cars to the track.
I've done a lot of HPDE days, and crashes are very rare, but they do happen.

I wonder how insurance works at the 'Ring? I thought it's "technically" a road.

dieselwagon > It's a "Porch-uh"
10/17/2013 at 11:35

Pretty much all European insurers and even car rental companies specifically exclude the 'ring from their policies. It is a road, but it's a private/toll road, so it's not that hard for the exclusion to be made, as is my understanding.

BoxerFanatic, troublesome iconoclast. > isocuda
10/17/2013 at 11:35

This is why a special group of cars, called affectionately, 'cheap track sluts', exist.

Buying a new car as a daily driver, and then destroying it on a track day, without consideration of how you get to work on monday... is a stupid, strategically moronic idea. Even just losing the value of the car, if you have another car to get to work, is of dubious levels of intelligence.

It's a "Porch-uh" > dieselwagon
10/17/2013 at 11:37

I thought as much. Thanks for the info. I'll be sure to rent a car from one of the 'Ring rental places if I ever make it out there.

Bird > isocuda
10/17/2013 at 11:48

I'm with everybody who's saying don't race it if you can't afford to wad it up.

Cheap Miata's are loads of fun on the track. My first time I out I spent about $2k on a Miata, and another $1k for roll bar, brakes, basic tuneup, etc. Just the basics to get on track. Could be done cheaper too.

It's a lot more fun when you don't have to worry about your car. It's more than just crashing too. You're much more likely to do something that could cause major failure. Money shift a new car and you'll be out more than the cost of a track beater.

isocuda > It's a "Porch-uh"
10/17/2013 at 11:49

Even for some folks, "cheap" is still expensive. Plus if you buy a new C7 or 911, the ability to do an event and have a "what if" policy is nice.

Yeah not only do the local insurance companies forbid the ring and the regular car rental companies have the same policy, but add in the fact that you have to pay for the entire section(s) of Armco you dent up and you can see how some people get into some serious checkbook trouble.

bimmerismyname > isocuda
10/17/2013 at 12:08

Read the article, but didn't see anything in there about specific companies that offer track insurance. Did i miss something?

isocuda > bimmerismyname
10/17/2013 at 12:28

The article focuses specifically on the one company, Lockton. This is because they are a really good example of good intentions and they set the bar for others to follow. You can find other companies that provide this kind of insurance on google, just type "race insurance" and hunt around.

MotoIQ focused specifically on this

http://locktonmotorsports.com/product/track-…

It's a "Porch-uh" > isocuda
10/17/2013 at 12:48

Yeah, not everybody can drop $2K on a car, then another $4-8K on parts (though this can be spread out). Then (unless you plan on driving to/from the track) you'll need a truck (unless you have one a DD) and a trailer (another $1-2K).

rad_mike > It's a "Porch-uh"
10/17/2013 at 13:12

Yeah, exactly this. It's not just the getting the cheap track car, it's all the other cost that comes along with now having multiple cars. Everything from storage to transport.

rad_mike > BoxerFanatic, troublesome iconoclast.
10/17/2013 at 13:18

I think your viewpoint is a little extreme here man - even a bit insulting as written. Having a cheap track car is only the beginning, now you need to store, maintain/upgrade, and transport that cheap track car. This makes using what might be your daily driver an only option for some and there's nothing wrong with that. Just because you're tracking your car doesn't mean you're destroying it - and not everyone is buying a track-able daily driver to maintain resale value. Some people buy these cars to enjoy them on a track...which is far better than them "enjoying" them on the streets. Check your tone.

BoxerFanatic, troublesome iconoclast. > rad_mike
10/17/2013 at 13:29

Notice, I didn't say it was entirely stupid to buy a new car FOR the track, if that is what it is for, and are so rich that you don't care about losing that money... but capriciously losing 20-50 thousand, or more, worth of a new sports car, is kind of reckless, and money that probably could do more good elsewhere... but that is freedom. Do your thing, if you can afford it.

Mistakes that you can afford to make are different than mistakes you CAN'T afford to make, and should know better than, before hand.

But complaining that an insurance company won't touch, nor pay for your monday ride to work... when you crashed it on the track on the previous saturday, and you KNEW that was your only ride...

That is STUPID, and unequivocally so, and such negligent thoughtlessness deserves shame for lack of strategic thinking, and making responsible choices... like preserving things that you rely on to be intact, and not unduly risking what you depend on.

isocuda > It's a "Porch-uh"
10/17/2013 at 13:43

That is the nature of the beast which is why I do suggest 24 hours of Lemons to people, which isn't cheap either because you do need safety mods and equipment. But at least you know ahead of time that it's most likely going to get destroyed. hahaha

isocuda > ddavidn
10/17/2013 at 17:38

I know :( I have an E36

ddavidn > isocuda
10/17/2013 at 17:49

And you're not on the readers' rides spreadsheet? For shame! Well, how old is she, what's her name?

isocuda > ddavidn
10/17/2013 at 17:59

Wanda is a 328is that makes a throaty sound and go a little bit slower than an M. Bought her from a pro driver/mentor of mine in mint condition. After nearly 7 years and well over a 100k miles later she's a bit battle hardened, but still kicking.

ddavidn > isocuda
10/17/2013 at 18:04

Nice. Mine is still ticking as well.

OH kicking...