Suit Against Insur. Co. Over Wreck at Track: I May Need Some Club Help !

[RockyTop]

As you may recall I sued Progressive Insurance after they denied coverage for an accident that I had in Turn 1 at RoadAtlanta at a "Track Days" instructional-just for fun program. We had to depose various instructors there, my mechanic and the woman who denied my claim.

I was fortunate to have won at the jury trial (costs of repair, bad faith damages and attorneys' fees), but to my and my attorney's COMPLETE surprise (and disgust), a GA Court of Appeals panel overturned the unanimous jury verdict and ruled AS A MATTER OF LAW that my participation in Track Days was "practice or preparation for racing" and thus excluded me from coverage.

This is a published opinion that mentions Panoz and the Track Days program specifically. It WILL be picked up by other insurance carriers and their counsel and in GA (and more likely thoughout the Southeast) those carriers will almost assuredly alter their policy language to ensure that their policy exclusion matches the language with which the court found favor.

THIS IS NOT A GOOD DEVELOPMENT FOR ME, TRACK DAYS, OR ANY OTHER DRIVING SCHOOL (e.g., Viper Days) !!! It makes me absolutely sick !

HOW CAN THE CLUB HELP ?

I have asked the Court of Appeals to reconsider its ruling and I should hear back in 10 days at the latest. If they refuse, I then have about 10 days to file for consideration by the GA Supreme Court. They DO NOT have to consider this and probably won't without urging, unless the matter involves a pressing policy or social issue -- - neither of which exist here. However, I believe car clubs such as ours can file amicus briefs that the GA Supreme Court can consider in deciding whether to take this matter up and how to rule on its substance.

I am writing to ask if the VCA would have its counsel file such a brief. Time is of the essence here.

Please feel free to call me at 678-585-0608 or e-mail me at [email protected]. I can get you a copy of the opinion and am happy to put the club's counsel in touch with mine.

Thank you all for your support and consideration.

Rocky Horde

P.S. Don't ever buy Progressive Insurance !

 

[SneakyPete]

That ***** that you have to learn that lesson the hard way. How much were the damages and lawyer fee's. Try the appeal you never know.

When I first got my viper, I checked this and my policy specifically states no coverages will be provided in any instance of racing, tracking the car or drap stripping the car. I have nationwide. thats why I have never gone, hit the wall and total the car, you are out $80,000 plus upgrades.

I think under vca sponsored track events you are under their insurance????

 

[slaughterj]

Geez, this *****! There's no way I can participate without insurance coverage, and if it is even questionable, that's a problem for me as well. Not only is this a problem for insurance carriers picking up the language, it becomes citeable to insurance companies in other states - while it wouldn't be binding precedent, it wouldn't be positive. Good luck with this, and hopefully the VCA can help out.

 

[RockyTop]

To calarify, the opinion I refer to was on appeal, that's what's so troubling. I have no appeal by right to the GA Supreme Court. They can certainly choose not to take my case if the Court of Appeal refuses to reconsider its opinion.


Sadly, the three judge appellate panel's opinion overturns a unanimous jury verdict in my favor even though they were SUPPOSEDLY viewing the evidence in the record in a light most favorable to ME as the law requires in the procedural context of my case - - i.e., reversing the denial of defendant's motion for directed verdict for you lawyer types.

In the end, I'm out about $27,000+ in repair costs. My attorneys' fees (thankfully for me done on contingency) were about $25,000. You can guess that my attorney, himself a magistrate judge, insuranace company defense attorney by trade (!!) and great guy, is sick over this as well.

My primary point is that this issue is larger than me and my car. In GA it's huge. In neighboring states it will probably have effect (though it will not be binding on their courts) and nationally, counsel for insurance companies will learn of this opinion through case reporters or their own "tickler" systems. It is the collateral damage potential of the court's published opinion that is the worst aspect of all.

 

[KepRght]

If the vca does not step in with some information this could be the first HUGE hit to the racing environment. and especially VOI...

Dont let this happen...

I guess you would need to buy a policy that includes "some un timed race track driving"

 

[pdmracing]

First off, the club does not insure your car @ track events. It is liability insurance only, so your individual policy is the one you count on. The problem withthis ruling is that it gives other Insurance co'c a way to turn down a claim. I have state farm & I know from experiance that they cover non timed events. But will they now?

As an alternative,There is on track insurance available. Here is a copy of an email I recently recieved,by the way I have nothing to do with this company:


> American Collectors Insurance, which offers auto physical damage coverage
> for Driver's Ed events. Because it is now available in Georgia, I wanted
to
> contact you to give you some information about this coverage.
>
> Driver's Ed insurance provides auto physical damage coverage for on-track
> Driver's Ed events. The program provides a unique alternative to a
personal
> auto policy's comp and collision coverage. The major benefits of a
Driver's
> Ed policy include Agreed Value coverage and protection specifically
against
> losses arising from Driver's Education events.
>
> I am extremely interested in making your Driver's Ed participants aware of
> this coverage. I am contacting you both because of your involvement in
> Driver's Ed Coordinating, but if there is someone else I should be
> attempting to contact, please advise. Perhaps your club is already
> associated with an insurance agent that I could speak with about this
> coverage. Please visit our website
> http://www.americancollectorsins.com/driversed.htm or call toll-free for
> more information. We are located in New Jersey, and our hours are 8:30 -
> 4:30 EST.
>
> I look forward to hearing from you!
>
> Best regards,
>
>
> Laura Bergan
> Marketing Department
> American Collectors Insurance
> 1-800-360-2277 Ext. 207

 

[Ulysses]

This is a terrible development!

 

[Fred(DrivingSchool)Kinder]

This is bigger than the Viper Club. Tracks are in use daily (No.Calif.) for driving schools(NASA,SCCA,GreenFlag, Checkered Flag, BMW club, etc.).

Couple thoughts.

1. Appeal GA Supreme Court ruling.

2.0 Look for alternative(supplemental) coverage for coverage during the appeal process and as a solution should the appeal fail.
2.1 I am sure we have a couple insurance executives in the club who could help work this issue. Steve are you there?

2.2 This would also be a great benefit for the VCA to offer.

 

[1TONY1]

Thats bad news for everyone. We need one of our VCA national officers to look into this brief for Rockytop ASAP. Are you guys listening ? Pete...how about a few phone calls to national and get this taken care of. tnx, Tony

 

[joe117]

I hope you guys get this worked out in your favor. I say that because I know how I would feel if I was forced to give up doing something I really enjoyed.

Having said that, I just can't believe that any normal, everyday insurance policy would cover high speed track events. Calling it a driving school is a way to get around it but the truth is it's dangerous, high speed driving. I cant believe an insurance company that will cancel someone for a couple of tickets would want to cover an expensive car in any kind of speed event. If the insurance company had paid instead of taking you to court, would they have continued your coverage so you could go do it again next month?
Is there any way you can buy special coverage to cover the event? It seems like the liability insurance for VCA events is a one time one event policy.
It look's to me like this driving school coverage is a loophole that the insurance companies are closing. Even if you win the case in the higher court, the insurance company will probably just change their wording to exempt all speed events, timed or un timed, school or race.

 

[HOGDEALER]

Is there currently any supplemental coverage available for track events like Viper Days?

 

[malcoll]

That ***** that you have to learn that lesson the hard way. How much were the damages and lawyer fee's. Try the appeal you never know.

When I first got my viper, I checked this and my policy specifically states no coverages will be provided in any instance of racing, tracking the car or drap stripping the car. I have nationwide. thats why I have never gone, hit the wall and total the car, you are out $80,000 plus upgrades.

I think under vca sponsored track events you are under their insurance????

Slithrn, let's talk, as you know I am a Nationwide agent. I recently had a claim with an insured who had is 98 Camaro at the drag strip in Orlando at a "test and tune" event. It caught fire at about the 1/8th mile mark.

The claim was covered as it was NOT a timed event. I'll be glad to review the policy with you and discuss. We'll discuss at our next driving event!

Lance

 

[NCVCA]

I agree with everyones comments thus far.

Also consider that the largest club racing organization in the us (SCCA) has thousands of participants and they participate "at their own risk" every weekend.

We may be somewhat spoiled to have had coverage thus far. If I were an insurance company I certainly wouldn't feel my exposure were the same for an owner of a Viper who tracked every chance he got compared to a 2000 mile a year Sunday cruiser.

I bet most here are willing to pay some reasonable increased rate to cover some reasonable risk.

The outcome of this will be meaningful and long lasting. I hope the club can assist in reaching a pro-participant conclusion.

Jeff

 

[jimandela]

just wrong to side with the insurance companies.
what about the little guy?

 

[snakoil]

An old sage and true saying:

Never put on the track what you can't afford to leave at the track.

 

[Ulysses]

I feel that some of you have grouped driving school along with actually racing the car. In reality driving school, although taught on a track, teaches you how to handle such a powerful beast. It also teaches the fine art of how to handle emergency situations on a skid pad. This is worlds away from actually racing the car at a timed event.

In that light, wouldn't it be to the insurance company's benefit to have the owner participate in such an event?

I believe that was the original intent when insurance companies allowed such coverage. I am not blind to the fact that there are abuses, but IMHO not allowing such coverage is just another benefit of your policy that they have eliminated in order to improve the bottom line. I have no problem with that. They are, after all, a business and they write the rules for the service you pay for.

On the other hand, insurance costs have sky rocketed along with the decrease in benefits. The problem for me is that I am getting less for more. Again, it's a business and they set the price for the service so what can a person do? You want that service, you pay for it. At this point I don't think it's price gouging.

Anyway, enough of my rambling and back to the original topic. If it was truly a driving school RockyTop was participating in and his policy stated that he was covered for such an event, then I believe that he should be covered.

 

[SteveBCloud9]

I FEEL your pain, really. When my Viper was wrecked, the guy I rented it to gave the keys to another individual who then wrecked it. Talk about an insurance nightmare and finger pointing. I finally got my $ 3 months later (more than I actually paid for the car 2 years ago )

As far as your situation, I agree with Progressive not covering you(sorry). All members should take note and learn from this. The bottom line is to make sure you read your insurance policy.

If you can't answer these questions right now, maybe you should look at your policy:

1) Is your car covered when you trailer it?
2) Who's coverage kicks in when you give the keys to your friend?
3) What happens if you drive through another state? No-fault insurance state?


You'd be surprised with these answers. Gentlemen, call you insurance company today.

Sorry to be blunt, I just tell it like it is...

 

[pdmracing]

far.

Also consider that the largest club racing organization in the us (SCCA) has thousands of participants and they participate "at their own risk" every weekend."



The SCCA is a racing organization, with timed events for the sole purpose of RACING. There are many different track events. The Porsche Club has been running drivers education events for 20 years. In the begining , some Insurance cos gave DISCOUNTS to drivers after attending the PCA schools.They are not racing schools, but non timed track events. If it is not a contest for speed, then most policies will cover it. State farm, Allstate, Liberty Mutual are just a few that will cover you at a non timed event.

Rocky's case is different, they are saying that they would cover him in a track event, but are trying to say that he was practicing for an upcoming event. They are just trying to get out of a legit claim. BOYCOT PROGRESSIVE. there is a reason the rates are so low , they dont pay the claim. Once again you get what you pay for.