Proposed Insurance Coverage Rider for Track Driving Event Applications

[RockyTop]

In light of my little insurance debacle, if you think you might be covered while on the track you may want to think about appending something like the following language to your application or, better, have it counter-signed by the event's organizer:

"It is my understanding (and you have confirmed to me) that this is not a racing event or competition of any kind, that it is instructional in nature and that no timing by the organizers of any type will be performed for comparative or competitive purposes. Any timing of my vehicle will be for the sole purpose of grouping cars and drivers of like capabilities to reduce traffic and speed differentials for the sole purpose of ensuring the safety of all participants. The above understanding is extremely important to ensure insurance coverage of me and my vehicle. I do not race, compete or perform stunts in my car because the terms of my auto insurance policy prohibit this kind of activity and I do not want to jeopardize my coverage."

You should absolutely keep all applications, correspondence and other documentation regarding your partcipation for future reference. If no incident occurs at the school/event, then consider whether you should destroy them. They probably would be discoverable later should you have an accident at another event. They may, however, also show your non-competitve participation at such outings.

I welcome any comments toward improving the above - - especially from lawyers in the club who litigate !

 

[jrkermode]

I investigated this issue yesterday. A State Farm (my carrier) policy does not provide any coverage during any kind of high speed event. It makes no difference if you are alone or racing, timed, untimed, with or without an instructor. So, the language you propose would not help.

And, yes, this does have the bizarre implication that you are better covered racing on the street.

With the abundance of track days here in NorCal, seems like a business opportunity to me.

 

[shifter]

My State Farm policy in Michigan does indeed provide coverage at driving events, as long as they are not timed and instructors are present.

A good friend of mine totaled his Viper at a track day driving event which was not timed, and State Farm covered it.

Must be local differences?

 

[Tiepilot]

Rocky,
I am in no way shape or form a lawyer but to me the word "event" implies competition of some sort.

 

[RockyTop]

Tiepilot, I agree and have edited my post.

 

[axe]

I investigated this issue yesterday. A State Farm (my carrier) policy does not provide any coverage during any kind of high speed event. It makes no difference if you are alone or racing, timed, untimed, with or without an instructor. So, the language you propose would not help.

And, yes, this does have the bizarre implication that you are better covered racing on the street.

With the abundance of track days here in NorCal, seems like a business opportunity to me.

I'm also in NorCal, but my State Farm agent told me something different (yesterday, too). They said that for driving schools/events, as long as it was not competitive and there were instructors, I would be covered, even if it was timed.

 

[Birvini]

We asked our State Farm agent before VOI and he said that we were covered "on track" as long as it was instructional.

 

[Tony Estes]

I called my State Farm agent and he said I would be covered as well as long as it was instructional.

 

[jrkermode]

That's what I get for trying to tell the short story. Here's the long version.


State Farm makes no mention of "speed contest" in their auto policy exclusion section. So, if you read your policy you would think you're OK. Not exactly.

State Farm has a stated underwriting policy that essentially says "we don't insure vehicles in speed contests" (like the Allstate policy mentioned above). Your Agent is responsible for enforcing this underwriting policy.

What that means is you get 1 claim for an on track incident. When you make that claim, you say "it wasn't an exclusion in my policy". Your agent says "I didn't know he was a racer". State Farm WILL settle the claim. However, they now view you as a racer and, per their underwriting policy, they can drop all your auto policies.

To me, that means not covered.

 

[Tony Estes]

I think we are talking about two different things driving instruction and racing. At Viper Days and many other organizations there are two separate programs. You have instructional groups and racing groups. I have heard a lot of people say they raced at Viper Days when in reality they didn't. They were in the instructional part of the program.

If you call your agent and ask if you are covered for a driving school he will probably say yes. If you call and say I'm going racing this weekend at the track the answer will probably be no.

Let's not confuse driving fast with an instructor to racing door to door these are two entirely different things.

 

[jrkermode]

Tony,

I specifically asked about timed, untimed, wheel to wheel all alone, with an on board instructor, under the supervision of an instructor, etc, etc... Makes no difference. If it happens on a race track, State Farm considers it a "speed contest".

 

[JimT 99RT]

Farmers told me the same thing. I was told that if I am on a closed track that is designated for racing purposes, then my underwriter and insurance agent felt that the activity was related to racing whether it was instruction or not, and any claim would almost certainly be denied, and I would have to pursue litigation to try and get any such claim covered.

Luckily Nevada has lots of open spaces and long stretches of lonely highway calling out to me…

 

[1TONY1]

Not sure if I would take the agents "opinion" either way. He is on the bottom of the chain. I know Allstate has covered a driving school incident (total loss) at a driving school with no problems and no questions. What Rocky has above would be very good to have signed ahead of time....it sure want hurt.

 

[pdmracing]

I specifically asked about timed, untimed, wheel to wheel all alone, with an on board instructor, under the supervision of an instructor, etc, etc... Makes no difference. If it happens on a race track, State Farm considers it a "speed contest".


This is simply not true , I have State Farm as well as many others in my area & they have paid all claims during drivers education events.

 

[RockyTop]

For those whoa are curious, the GA Supreme Court must respond to our petition for cert. (request for consideration) within 30 days of its submission. We submitted it just over a week ago, so we'll know whether I will live to fight another day fairly soon ! Keeping my fingers and toes crossed.