Event insurance-have you found a company that covers you and your car?

Event insurance, car insurance that covers you and your car during the SSCC or NORC. Has anyone found a company that will cover you and your car?

A rep of Hagerty told me that any legitimate company is going to tell you that your normal auto policy is going to stop coverage at the beginning of any track event.

I did a couple of TrackNightinAmerica events with SCCA. I clicked on their button for car coverage during the event. It was staggering, $500+ for 60 minutes of track time in my $25,000 car. I choose to drive 7/10 rather than insure, but that does not preclude the possibility of a crash.

Any suggestions?

Bill

Bill Lum, Driver (for now)

Megan Lum, Navigator (future driver)

2014 Lexus is350

A sporty car

Original Post

No, Bill, I haven't found any such insurance offering.  Some UK companies specialize (or is that "specialise"?) in rally car insurance, and what we do is possibly categorized as a high-speed rally (except for Unlimited).  But I haven't found anything in the U.S.  Maybe someone more skilled at that Interweb thing can do better.

However, let's think about this.  Suppose some company decided to go into the business of insuring SSCC rallyists.  And suppose the insurance was only collision, not liability or medical or any of that - presumably the rallyists would have to have separate medical and street liability.  And suppose that in the typical event, there's a strong likelihood of one participant experiencing $25,000 in car damage (it could be a lot more, it could be quite a bit less, and presumably there'd be a deductible of, say, $1000).  So the insurance company would have to obtain revenues of maybe $50,000 from that event in order to cover costs, risks, selling expenses, etc.  If there are 100 participants, maybe 50 of them would get the insurance.  That lowers the odds of one of the insured drivers having an accident, but it increases the premium.  In this hypothetical, the premium would have to be somewhere between $500 and $1,000 to cover shoot-out and/or main event, and it would probably have an upper limit of the payout.  Do you suppose half of the participants would pay that much?  I doubt it.

So, that means we'll probably each continue to be self-insured.  Or maybe some enterprising person will start an insurance company.  Or maybe my numbers are so crazy and out of whack that a smarter person could show me where I'm all wrong.

I can say with absolute surety that it’s not gonna happen for this years race.  Every single HPDE, track day, or drag racing insurer I contacted said not gonna happen unless on a approved track.  I probably contacted about 10 to 12 here in the US.  I even had several underwriters go to the SSCC website to research the history and rules of the event.  I believe any research on their part was cursory but still they obliged.  I called Ms Hill and asked her about the event insurer and whether they would be willing to insure participants.  She said they have tried in the past but right now it’s a no go.  I’d really like to research this more in the future and try to find a company willing to work with us.  I’m planning to talk to Ms Hill or anyone else who can possibly give me more insight during race weekend.

Update.  I have found a possible insurer called Xinsurance out of UT.  They normally offer just track day insurance at specific track events however are willing to offer coverage for my car.  Its not cheap but Im hoping since they are willing to insure me a month out from a race they’ve never insured before that this may lead to coverage for other participants at a discounted rate?  Im planning to call and speak with the underwriter more tomorrow.  I will let everyone know once I’ve worked it out.

I’ve worked out a policy with XInsurance for accidental damage only.  Unfortunately they informed me due to time constraints for the upcoming race this weekend that they would be unable to offer any other policies for this year.  However the underwriter I spoke with was very willing to work with future SSCC/NORC participants for future races.

Mike,

The company is named XInsurance out of Sandy UT.  The underwriter I spoke with is Tyson Lyndsey.  Tyson’s phone number is 801-304-5581 and his email is tysonl@xinsurance.com.  I just got off the phone with Bunny today and emailed her the contact information also.  Glad this is an option for people now because almost everyone else I spoke with regarding track insurance said no thanks once they heard “closed highway” haha.

Brad

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