Find the best policy to get covered on and off the track.
Finding affordable coverage for race cars or other cars used for motorsports could leave you in the dust. But, there are several options out there depending on the vehicle and the situation.
As a general rule of thumb, you’re unlikely to find any insurance to cover damage to a vehicle on a track or while it’s racing in a competitive event. But you can find insurance to cover a vehicle at other times — including when it’s in storage, in transport and while it’s being driven elsewhere on the site, like between the pit and the track.
There are several providers who will insure vehicles for track-day use, but the provided coverage can differ. Carefully read and compare policies of different providers to consider if you’re getting the most of your money.
A few specialty providers, like Heacock and Lockton, offer racing coverage. Others — like Hagerty — offer coverage for your vehicle while it’s on the track for both competitive and noncompetitive events. Track-day insurance protects against:
- Damage while participating in a high-performance event.
- Damage while on the track and in the paddock.
- Physical damage you caused, one additional pre-approved driver and your driving instructor.
There are also coverage options for competitive and noncompetitive time trials, towing and storage, rental car reimbursement and pollutant cleanup and removal. However, they don’t cover liability, so you may be on the hook for damage to other vehicles.
Other ways to insure a racing vehicle
The right option depends on what kind of car you drive and what kind of motorsports you’re involved with. The main deciding factor is if your car is street legal.
Insuring street-legal racing vehicles
Street-legal racing cars need to meet certain standards for everyday driving. This group includes classic muscle cars like a 1969 Camaro, luxury cars like the BMW E36 or imported cars such as Bugatti or Koenigsegg. To insure a street-legal car that you also use for racing, you may want to consider luxury car insurance. This is pricey yet comprehensive car insurance with some key added benefits that might be included.
- Coverage for performance-enhancing modifications
- Ability to retain salvage rights if the car is totaled
- Lay-up periods and limited-use discounts
- Cost of importing parts
- Choose your own repairer instead of using the insurer’s
- Some coverage while participating in approved motorsports events
Drag car insurance, rally car insurance and other special vehicles
Dedicated racing vehicles can cost a lot to repair. Generally, standard insurers won’t cover these vehicles, so you might need to get coverage through insurance brokers. Brokers can access policies that may not be available to the general public and can negotiate with insurers on your behalf.
Some insurers offer more affordable options by leaving out coverage on the track, while still insuring a vehicle during transport, in storage and for everything other than damage while racing or competing. Policies could include coverage for items related to racing activities, including tools, spare parts, trailers, crew uniforms and merchandise.
Trailer and paddock coverage
If you’re looking for a more affordable way to cover your vehicle, consider trailer and paddock coverage. While it won’t cover your vehicle on the track, it generally offers protection under the following conditions.
- In the trailer, which includes in transit along with loading and unloading.
- In the paddock.
- While in storage or at the shop.
- From theft, fire, floods, hurricanes or earthquakes.
The key to finding the best value for your money with motorsports car insurance is to first figure out what you do and don’t need. Expect to pay a lot for coverage when you’re on the track, especially if you drive an expensive vehicle.
However, if you’re open to other options, you may be able to cut costs since coverage is largely tailored to individual needs. Compare your options from multiple providers to find the best coverage for your situation.