MikeJim

I telephoned my insurance company (AAA- American Automobile Association) yesterday to inquire as to whether the addition of race seats (and the bypassing of air bags) on my 2006 Carrera 997S would affect my coverage. And I was told in no uncertain terms that AAA would NOT insure a car that was being used in "track events." They didn't just say they wouldn't cover the car AT the track, they said, and I quote: "There's no either-or. If you are using the car at the track, we will not insure it even on the street. Period."

So there you have it from no lesser source than the American Automobile Association. When I told them I planned to continue using the car at PCA-sanctioned "driver's education" weekends, they informed me that my policy would end at midnight. And it did.

I have a trailer, and 99% of my driving is at the track. So this doesn't cause extreme concern. But without street insurance, I'll have to relinquish my license tag. I'll probably just buy a track insurance package. But here's where I must rely on the collective wisdom of this group, because I'm working the numbers, and I'm coming up short on value.

The Lockton Company will sell you a track policy, but you're only allowed one claim...then they drop you for three years. Physical damage only...no liability. There's a 10% deductible. The value of the car is set by Kelly's Blue Book. So, for instance, a 2006 Carrera 997S is valued at roughly $40,000. A 15-event package costs about $2,000. You can get additional coverage for wheels, suspension, exhaust, etc.

Track policies, from where I sit, make sense if you've got a GT3 or ZR1 or something Italian. But a $40K car seems to fall into that no-man's-land.

Track incidents I've seen usually involve a messed up quarter panel or two. Since the first $4,000 comes out of your own pocket, you'd have to sustain quite a bit of damage before the policy begins to make financial sense. And, even then, one claim and you're out. How much damage before you notify the insurer? $10K? $20K? $30K?

What am I missing here? I'm really curious what the rest of you do for insurance. Racers and DE guys.

Veloce Raptor

You need to actually read your AAA policy. Unless it is specifically excluded there, what they tell you on the phone is irrelevant. Also, you should know better: the first rule of Fight Club is.....

TRT41

1+

I self insure on the track but do carry Storage, Transport and Paddock iinsurance. I think it runs me less than $600 per year via Lockton.

Matt Romanowski

If they cancelled his policy, then it doesn't matter what it reads now. And to not tell the insurance company is terrible advice. Remember that all policies have that line in them that reads that intentionally defrauding the incsurance company by not telling them something is reason for cancelling your policy by itself and not paying claims.

For me, I have Allstate that covers my car on the streets. No coverage when on track. For the banana mobile, we have storage and transport insurance through Hagerty. My agent knows exactly how my cars are used and has told me exactly how they are covered.

You should check out other companies to give you street insurance on your car. I'm sure you can get it (minus the track coverage).

Veloce Raptor

Huh? Where do you get "intentionally defrauding" in this thread???

I suggested he read his policy & not rely on what they tell him on the phone. I never suggested he do ANYTHING else.

Good grief.

BC

LOL.

I'm not sure if you got the memo.

Essentially, because of the cost of litigation (if it gets there - when you sign up for insurance, you many times are signing up for non-court arbitration) - the insurance policy wording has become enforceable on YOU as the customer, but not enforceable on the company as the insurer.

Its important to note that per the OP, he SPOKE to the company, and when they had the info they got from him - they dropped him.

I am speaking from inside the industry. I no longer wish to be inside it, unless I can make the rules - but take my info as pretty solid -

It would be exceedingly difficult to fight if there is a breach. Even if its on the contract. They do as they choose, because 90% of the time, they can get away with it.

Veloce Raptor

No, I got it. However, he provided the catalyst for cancellation by telling them what he was doing with the car. The car is a track car anyway, and I'm not sure why having a tag is important. And he already seemed to realize that his car was not covered for on track claims. However, there was no reason to tell them pointedly that he would continue to take the car to the track.

Matt Romanowski

See below.

Veloce Raptor

You still didn't answer my question. Where is the intention to "defraud", Matt? I don't tell my iinsurance company where I intend to driive my truck. I know what the policy says, and know where it is covered & where it is not. That sin't "fraud" either....duh.

Unless his AAA policy specifically says he MUST inform them 24/7 of ALL the places he intends to drive his insured vehicle, there is no burden on him to tell them anything.

Come on. Do you tell your insurance company every single place you intend to drive? What if they like CostCo, and you shop att Wal Mart. Sheesh, if you don't tell them you're heading to Wal Mart in 3 weeks, you might be
"defrauding" them.

LMAO!

BC

Well, no. You are correct. But really - if the company is willing to drop him that quickly from a few words said on the phone to an agent, how do you think they would react if there were ANY way out of paying ANY claim on his auto, home, or liability coverage?

BC

Dave - this is what they want in the end. They want a GPS speed and location sensor on the car directly hooked up to their systems. You go above 80? You get dropped, or your rates go up. You go off road? You get the same. You go on a track? You get an email saying you are no longer covered.

Progressive "offers" this and has a slick marketing campaign for it. If it goes well, other companies will follow suit. With enough usage, if you DO NOT want to be watched, you will have to pay more than the watched.

This is not new, nor is the direction it is going new. The insurance companies were permanently installed in your wallet once the states allowed the "insurance mandatory" laws to "protect the public". California updates with the companies on a WEEKLY basis. If you don't have coverage long enough, they can do crazy stuff at the DMV.

When I get stopped, I always say, when asked if I have insurance, that "You know already - because its updated weekly" - and the cop is usually taken aback and says "Well, you are supposed to carry verification anyway"

Veloce Raptor

Agreed. But (IMO) bettter to cross that bridge if & when you come to it rather than doing a flyying billboard right in front of their noses...

Yup, and that is one of the reasons I will never do business with Progressive (which is owned by one of the biggest socialist billionaires in the US...big surprise, eh?), or Geico, or a few others of that ilk.

MikeJim

You are the veering-est bunch. Back to the original post. How do YOU handle insurance or not-insurance? Are you tracking your car and NOT telling the carrier? If you get crunched. will you file a claim? If you have track insurance, do you buy per event...or multi-event packages? If you don't have track coverage, how do you handle insuring the car when it's being trailered or stored? Do you ever slap your tow truck's tag on so you can drive down to the gas station?

Larry Herman

Hmmm, sounds like an opportunity to develop an electronic gizmo to help out our "more aggressive" drivers appear normal. After all, we do live in a capitalistic society.

Larry Herman

It's cause they all run toe-out.

Paddock insurance on the racecar for fire, theft, trailering accident, incidental damage. Take my chances on the track.