paver

Ontrack has a 140k max now. 10% deductible. So, that's pretty close to 991 GT3 territory(still won't even cover the wheels on mooty's 918 though)
FWIW they are both willing to add organized events that aren't listed. You just have to get in touch with them. I have used both of them. I can say they are both friendly, helpful groups. I have never had a claim and don't know anyone who has. How they handled that would be the question.
Hf1, do you underinsure just to cut premium price?

hf1

There can be no other reason. Although, in my mind I thought I was close to fully insured as I was under the wrong impression that I get to keep the car if it gets totaled so I could potentially cover the value difference by selling the good parts. Since the insurer gets the car this won't work.

Think of underinsuring as you self-insuring a portion of the value. So if you insure a $100k car for only $50k then it is you who is insuring the other $50k. You are 50/50 patner with the insurance company. In the case of running naked (i.e. no insurance), you are both the insurer and the insured. Nothing wrong with that if you have the liquidity to afford it.

This is where frayed's logic about not tracking something you wouldn't be comfortable leaving behind at the track starts to make sense. The lower the value at risk relative to your net worth or liquid assets, the easier you could afford to be the insurer to yourself (and take the business from the insurance company). The various levels of underinsurance allow this to be turned from a binary (either you or someone else insures you fully) into a sliding scale situation where you partner with an outside party as a part insurer of the car.

Hope this makes sense.

frayed

Bingo.

Funny thing is, I have a very different reaction to this thread than perhaps most folks.

I want to be in the track insurance business and will inquire into Lockton about investment opportunities in addition to track coverage.

hf1

Insurance is a sweet and compelling gig due to the massive asymmetry of information/knowledge between seller (superior knowledge/analysis) and buyer (inferior) in terms of the product being sold (risk). This is especially prominent in less competitive, niche industries such as track insurance where the profit margins have not been arbitraged out by competition. PM me what you find out, if you don't mind.

frayed

Sure. I've allocated a percentage of investable assets to stuff like this. 80% goes with my wealth adviser (well diversified, low management fee, great money managers handling all the stock picks and technical trading), balance of 20% into stuff with more sizzle. Currently in a hedge fund that's been killing it, and a new restaurant start.

Nick

Not sure but I suspect much of the track coverage is reinsured by the track carrier. Exposure substantially reduced though profit reduced as well.

Restaurant business very difficult. Good luck on that one.

frayed

Very limited exposure on restaurants b/c such high failure rate. High risk investments limited to small percentage for a reason. SEI out of the philly area have some of the top money managers in the industry and handle everything else but my 'play' investments.

So your guess is that these small niche companies are reinsured?

Edit: just read up on them; motorsports a small line for them as they are a huge privately held brokerage firm.

Nick

More than likely they buy reinsurance for protection.

Years ago when I tracked I ran naked and didn't think twice about it. Cars were cheaper back then.

Reason for my concern is a friend totaled his CGT at a race track killing himself in the process. I managed to get the FMV of the car for the widow from his street insurance company. He did not have track coverage. Since then, the carrier change its language and it would be a much tougher case today.

frayed

I remember all that.

Yeah, and right around that time all policies started changing. First 'competition use' then to 'any use on a track'. Loopholes closed quick

Hoopumpers

Jesus. What track? What were the circumstances? (apologies if this was in an earlier thread)

Alan Smithee

California Speedway ca. 2005. Very widely publicized. Sore subject for many.

Hoopumpers

Ah yes, I see

Spyerx

Several examples here and other sites of lockton paying w/o issue and w/o hassle. I have lockton, 12 pack, insured for 'reasonable estimated value' on a 15% deductible policy. Can I afford to lose it and walk? Of course, otherwise it wouldn't be on a track at all. But crap happens, and I'd rather not. On a per day/weekend basis it's not bad when buying a multi pack policy, quite a bit less than single day policies.

MaxLTV

I'm self-insuring, just to give me an additional reason to be careful.

BTW, just read up on that GT accident - wow, tragic. And makes you think twice about giving someone a ride at a track or getting one for that matter.

Nick

I stopped giving hot rides years ago whether on a track or on the street. I will admit I was sorely tempted a couple of years ago. I had a 430 Yellow Spider and pulled into a gas station for fuel. A woman who I can only describe as a blend of Kate Upton and Julia Roberts walked up to my car and said she had never ridden in a Ferrari. She asked if it was fast and would I take her for a ride.

Alas, I am happily married and I reluctantly declined.