Insurance Information for Racers - F-Body Road Racing and Autocross Forums

I have a very large life insurance policy, insure three cars, a house and a large umbrella liability policy all with the same agent (I'm sure he loves me - I've never had a claim on any of them). Since I will be road racing with NASA this year, I figured it was time to have a face-to-face with the source my second-largest bill per month to ensure that I understood things. Besides, I needed to understand the status of the life insurance policy for the benefit of my family. I am not an ostrich and do not live like one.

Here is what I learned:

Life Insurance - Since the policy has been in effect for over two years (actually, 5 years), I am now covered for a death benefit should I be killed in an on-track incident, racing or otherwise. When I originally got the policy, I had to answer questions about participating in "risky activities" such as sky diving, auto racing, etc. At that time, the riskiest behavior that I was involved in was flying on national airlines in such countries as Venezuela (they didn't ask, hehe). I didn't even autocross then, so my answers were honest. My agent additionally told me that even if I HAD been racing back then, the "2 year limit" had run out and the company must renew my policy at my behest through 2045 regardless of what I do now or what happens to my health. Interesting.

Race Car/Towing - My race car is still street legal and fully insured. Here's where is gets interesting. Whether or not the race car is insured, my liability on the tow vehicle and my umbrella policy extends to the towed equipment.

Accidents - Should I be involved in an accident while towing regardless of fault, the race car is covered under it's own policy since it is registered, licensed and insured. However, should I be involved in a one-car accident or any accident that is deemed as my fault and the race car is uninsured, damage to the race car and trailer (unless I purchase a rider - I didn't) is my problem. Should I be in an accident that was determined to be someone else's fault, the race car, trailer and tow vehicle are all covered by the other guy's insurance.

I asked if I could purchase insurance for the race car should I make it street-un-legal for towing purposes. I was told no. If it's not registered and license, they won't touch it.

I know that alot of you are having kids or have young ones. For you, the most interesting item is probably the life insurance.

As I was leaving, my agent left me with this last nugget. He said that they are instructed to drop anyone who engages in auto racing. However, he has no intention to do such a thing.

Just information. Be aware that this stuff probably varies by company.

KeithO View Member Profile	Jan 26 2004, 12:25 AM Post #1
Veteran Member Group: Advanced Members Posts: 2,647 Joined: 23-December 03 From: Pittsburgh, PA Member No.: 14	I have a very large life insurance policy, insure three cars, a house and a large umbrella liability policy all with the same agent (I'm sure he loves me - I've never had a claim on any of them). Since I will be road racing with NASA this year, I figured it was time to have a face-to-face with the source my second-largest bill per month to ensure that I understood things. Besides, I needed to understand the status of the life insurance policy for the benefit of my family. I am not an ostrich and do not live like one. Here is what I learned: Life Insurance - Since the policy has been in effect for over two years (actually, 5 years), I am now covered for a death benefit should I be killed in an on-track incident, racing or otherwise. When I originally got the policy, I had to answer questions about participating in "risky activities" such as sky diving, auto racing, etc. At that time, the riskiest behavior that I was involved in was flying on national airlines in such countries as Venezuela (they didn't ask, hehe). I didn't even autocross then, so my answers were honest. My agent additionally told me that even if I HAD been racing back then, the "2 year limit" had run out and the company must renew my policy at my behest through 2045 regardless of what I do now or what happens to my health. Interesting. Race Car/Towing - My race car is still street legal and fully insured. Here's where is gets interesting. Whether or not the race car is insured, my liability on the tow vehicle and my umbrella policy extends to the towed equipment. Accidents - Should I be involved in an accident while towing regardless of fault, the race car is covered under it's own policy since it is registered, licensed and insured. However, should I be involved in a one-car accident or any accident that is deemed as my fault and the race car is uninsured, damage to the race car and trailer (unless I purchase a rider - I didn't) is my problem. Should I be in an accident that was determined to be someone else's fault, the race car, trailer and tow vehicle are all covered by the other guy's insurance. I asked if I could purchase insurance for the race car should I make it street-un-legal for towing purposes. I was told no. If it's not registered and license, they won't touch it. I know that alot of you are having kids or have young ones. For you, the most interesting item is probably the life insurance. As I was leaving, my agent left me with this last nugget. He said that they are instructed to drop anyone who engages in auto racing. However, he has no intention to do such a thing. Just information. Be aware that this stuff probably varies by company.

94bird View Member Profile	Jan 26 2004, 12:56 AM Post #2
Insert catch phrase here Group: Advanced Members Posts: 2,098 Joined: 23-December 03 From: Michigan Member No.: 20	Keith, I had a similar talk with my insurance company (State Farm) a few months ago. Since my car is no longer street legal they wouldn't insure it, but they told me the same thing as you about it being covered if it's on the trailer since both my truck and trailer are insured by them. The only life insurance I currently have is from my work so I need to talk to them about it. I also plan to take out a larger policy with State Farm in the next month or so. We have to start talking to them about it.