Insurance Information for Racers Options

[KeithO]

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]

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.

[steve-d]

Very important info regarding Life Insurance. If you bring it up at the inception of the policy you'll be shown the exclusions page: skydiving, military aircraft accidents, involvement in war or insurrection, etc. Then you'll be shown the door.

The second question arising usually deals w/coverage of a street car damaged at the track. Its been answered before: usually no coverage, but check w/your carrier as each policy varies.

The issue not discussed previously but nevertheless is of prime importance, is health insurance. Medical costs are obviously very expensive. I've not checked into my policy, and don't know the "usual" exclusions. Anyone want to guess what your carrier will say when reviewing a stack of bills totaling $35k where the first report is the Medical air transport originating from your local speedway?

Regards
Steve

[94bird]

Steve, not all life insurance policies exclude auto racing if you mention it in the beginning. They just raise your rates. I had a policy with American Express that I terminated last year for another reason where I specifically mentioned it and was insured for it. My rates didn't go up that much either. Hopefully I can find another policy that permits it.

I will check with my employer this week on my health insurance though. Good point.

[ERVRCG]

Both my father and I have life insurance that covers us racing. I started mine when I was 16 and made them fully aware of my racing activities and pay a larger premium. Although in comparision if I where to start that same policy today that premium would be at least three times the amount per year. The company was Franklin Life now transfered to American General

Eric V.

[mitchntx]

Good information ... thanks

[z28racergirl]

If you don't already have it listed on a policy, make sure your trailer is insured somehow. My agent told me over the phone that our full coverage on our truck would include a trailer, and then when my buddy wrecked my trailer (being towed behind my truck--truck was fine) she said we had no coverage and denied telling me the previous statement.

Just another FYI. Thanks for the other info in this thread guys.

[94bird]

Insurance on my trailer is VERY, VERY cheap. Something like $50 a year or the like. I'd have to look it up to confirm though.