Getting Track Day Insurance for Your Car
The last thing you want to do when tracking your car is risk the investment you put into it. Unfortunately, many people are put in this precarious position because their insurer refuses to cover track-day activities. No matter whether you’re racing, doing hot laps or have someone accidentally smash your taillight back up the trailer, if it happens inside the track gates, then it may not be covered.
Until recently, very few people had a good solution to this problem. Most just knew they carried the risk of losing their vehicle with every turn, something that tends to shake your focus when trying to hit an apex.
But now you have options. Insuring your car for the track in a long-term policy is not only possible, it’s also getting easier every day.
Why Most Insurers Won’t Touch Track Days
Most policies have language exempting coverage for damages if said damage happens “inside a facility designated for racing.” Regardless of whether you happen to be racing at the time, your insurer will do everything in their power to deny a related claim.
To understand why your insurance policy generally won’t cover track activities, you have to think about things from their — admittedly skewed — perspective. Insurers calculate premium rates based on risk, which is the prime reason why your policy goes up every time you get a speeding ticket or make a claim. To them, racing around a track at as fast a speed as possible is the ultimate risk, something far removed from everyday driving.
Never mind the fact that you are more likely to get rear-ended by a visor-wearing eighteen year old in a lifted Jeep Cherokee on your way to work than you are to seriously damage your car on the track — to them an apparent risk is an actual risk, probabilities be damned.
Even policies that do cover track driving on a limited basis will have umpteen exemptions, and they often have a $150,000 coverage limit. If you happen to drive a valuable sportscar like a Porsche GT3 RS with modifications, then you would barely scrape by in the event your vehicle is totalled. You are also likely to pay a 10% deductible, meaning your policy barely scratches the surface of what you need.
Options for Track Day Insurance
Recognizing the challenge most people have in getting their vehicle insured, specialty insurance providers have begun creating policies just for track drivers and amateur racers. These policies apply to all track day activities and can cover long term periods rather than single events.
One of the best of these options is the OpenTrack, a privately founded insurer that can provide coverage for even the most valuable of exotics. This particular insurer does not provide coverage for competitive events and time trials, though, which means you will have to look towards companies like Lockton Motorsports for policies covering you on a per-event basis.
High Performance Driver Education (HPDE) events like Autocross are covered by one of Lockton’s policies, and you can also purchase separate off-track insurance for your trailer, equipment and other assets. The company also offers policies endorsed by the SCCA and car clubs like Ferrari Club of America and Porsche Club of America.
So, if you want to hit the track for both open lapping and the occasional competitive event, you are going to have to put in the research, read the fine print and ensure that your car is covered based on the rules of the event you will be participating in. All this due diligence can end up costing a pretty penny, but what price can you put on peace of mind while trying to drift through turns at 80+ miles per hour?