Daredevil on the Road: Racecar Insurance Author:    Posted under: Auto InsuranceAuto Insurance by Car Types

For those who can afford it, and actually find pleasure in seeing the sleek machines whiz by in the racetrack, racecars are priceless possessions.  By definition, these cars are those that go at very fast speeds, designed for racetracks.  As viewers of this widely popular spectacle, we could only care about how fast they go in the track, and second-guess if there would be a pile up: lest the show will be declared boring.

Hence, if your standard, everyday cars are insured, then all the more if you own the devils on the road.  These high-speed vehicles need that policy. You, as the owner, would need to ensure that in the event of total loss or collision, you and your investment are protected.  I’m sure that you, as the owner, and probably the driver, of the vehicle, wouldn’t want your time, money, and effort into setting up your vehicle for the big day, end up getting disappointed, right?

Insurance for these types of vehicles is actually a high-risk proposition.  You can encounter blown tires, blown engines, fires, collisions: you name it, the track has it.  These are driven in daredevil situations, so insurance should cover general liability, and participant accident protection.  So how should you proceed with insuring your prized race car?

Remember that race car insurance is a specialized type of insurance.  You wouldn’t find help by calling your regular insurance companies, and would probably need to do a little research.  But, just like any other standard insurance policy, the best way to go about it is to look around and compare.  Don’t be in a rush to purchase your policy.  Check rates against each company and decide which one offers you the best protection for its value.

Before we even talk about coverage, be ready with the needed paperwork for maintenance history of your car.  Surely, your insurance company will be interested in how well you have maintained this vehicle.  Racecar insurance premiums are already high in cost at the onset.  Let’s not make it more complicated by showing the company that you as the owner, have not done your share in keeping the car in tip-top shape.

Are you your own racecar’s driver?  Get ready to be questioned as well for your driving history and medical history—these count.

As in standard cars, make sure that you have equipped your racecar with the necessary and up-to-date anti-theft and safety features.  These will also drive down the cost for your policy.

Just like a standard car, general liability coverage should be present.  It will pay for the damage that the driver may have cost, including repairing the damage to the other vehicle.  Third party damages, whether to the driver and the property, should also be covered.  Medical expenses like rehabilitation for the injured party as well as legal costs for litigation and representation should also be included.  If in the event that the car is totaled, it should be indicated in your policy that a cash out be made.  If in the case of repairs, insurance should also cover the costs.

Deductibles also count.  Take into consideration if you will still be gambling to stay in the game until the next racing season.  If this is not a foreseeable future, opt for a higher deductible.  That way, you won’t be paying so much on your monthly premiums.

Since you will very well be transporting the racecar to and fro, make sure that the trailer that will be used to do so is covered in the policy.  Protection while in transit, and even when in the vicinity of the racetrack (but not in the race per se), should likewise be present.  However, keep in mind that a considerable amount of money will be needed to add this feature to our insurance policy.  It may cost as much at 10% of the value of your race car.  Translated to the premium, well, go do the math.  It’s going to cost you.

Insurance for the equipment, accessories, gear, and spare parts for the car itself should also be stated in the policy.  Moreover, in the event of vandalism or theft, there should be terms agreed upon in the policy as well.

Lastly, make sure of racing and track exclusions.  These differ from state to state.  An example of exclusion would be loss resulting from an organized race, or practicing on a racetrack as well.

Bottom line is, never assume anything in your policy.  Make sure that everything is discussed with your insurance agent, and all details are in black and white.  It is best to have a thorough understanding of this policy because it’s really a lot of money at stake.



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