"Some" highlights from the article
Track Day InsuranceHigh Performance Driver Education coverage insures bad things don’t happen to good people (that’s you) during track days
Here’s a man-bites-dog twist to track day crash liability concerns, resulting from a crash at a Dodge Viper Owners Invitational track event at Las Vegas Motor Speedway. Dodge sponsors such events periodically, and invites Viper owners to participate. The sessions include classroom instruction, track time, and professional driving school instructors.
According to reports from knowledgeable sources, here is the surprising story. A novice (never before on any track) Viper owner, who just happened to be a state court judge, was paired up with an instructor from a professional racing school. Everyone involved signed a full release of liability. After the first couple of laps, the instructor insisted that the student was braking too early for the turns, and told him to stay on the throttle until the instructor told him to hit the brakes.
Whether it was a communication problem or reaction problem, the end result was that the student braked too late, sending the Viper into a spin and into the concrete wall. The student was unhurt, but the instructor’s foot was tangled up in the mangled floorboard, trapping him in the car. He was cut out of the car and rushed to the hospital. In addition to less permanent physical injuries, he lost a toe that the doctors were unable to reattach.
In a twist to the usual track liability claim, the instructor sued the student, claiming he was to blame for the injuries because he didn’t follow instructions. The instructor’s claims include medical costs, pain and suffering, loss of the toe, lost wages, impairment of his ability to properly heel-and-toe downshift, and loss of marital relations from his resulting feelings of inadequacy without the toe. He has demanded $1.5 million in damages, and the case is presently scheduled for trial in October.
This is not the first time “Legal Files” has reported on track liability and the fact that most automobile insurance policies now specifically exclude racetrack claims from coverage, but many track day participants still don’t understand or believe that.
Problems beget opportunities
Fortunately, a new industry has developed to fill the need. An Internet search under “track day insurance” will identify a number of insurance agencies that offer coverage specifically designed to protect you and your car from financial ruin. These policies typically cover damage to your vehicle only, but some offer liability protection as well. Some are single-event policies, while others are annual policies. There are too many to list and detail, so “Legal Files” reviewed three companies’ offerings to give readers an overview.
Steve Katz, of Jacob J. Katz and Company (
hpde insurance, race track insurance, de insurance, track driving school insurance, on track insurance - ontrackinsurance.com), worried about his own lack of coverage when driving his Viper ACR at track days. He searched around for an insurance company that would be interested, and eventually paired up with Great American Insurance Company to offer High Performance Driver Education (HPDE) coverage. Instant price quotes and online applications are easy to use. Maximum available coverage is $100,000, but Katz expects that to increase substantially very soon. Premiums are typically about 0.56% of the value of the car. The deductible is 5% of the value of the car, with a $1,500 minimum. Coverage is afforded for an entire event, whether it is one or two days in length, with a 50% discount for a third day of an event.
For example, say you are driving a $50,000 Porsche Boxster S. Your premium will be about $280 for the first two days, with a deductible of $2,500. $15,000 of crash damage costs you $2,500 to repair. Total the car, and you get a check for $47,500.
Your premium is refundable, except for the modest service fee, if you don’t participate in the event after buying the policy. Damage caused by you, your designated co-driver, or your instructor is all covered. Applications are virtually automatically accepted if the event is listed on their calendar (most club events are). Other events are individually reviewed. Coverage is denied for race events and race cars, defined as those incapable of being registered for street use, for those who have had a previous HPDE claim (subject to review), and for those with poor driving records.
Katz explains, “We are looking to insure competent drivers who are willing to obey the rules established at well-managed track events. We don’t care so much about a ticket or accident or two, but ‘habitual traffic offenders’ display a lack of willingness to follow the law, and are likely to not follow track rules either.”
Katz assures readers that HPDE coverage is sorely needed. “The days of racing exclusions requiring ‘speed contests’ or ‘timed events’ are long gone. So are the days of insurers that will cover you once before they cancel you. Every auto policy I’ve seen over the last few years has contained a very broad exclusion that denies coverage for just about anything that happens on a racing surface.”
