Happy New Year everyone! I am interested in purchasing an additional term life insurance policy as I plan to spend quite a bit of time on the track next season mostly conducting HPDE and lapping. I recently joined a private race track and I want to make sure my family is protected in the event of a loss. Coincidentally my father-in-law is the insurance business and he has been helping me but we have run into a roadblock. I want to disclose my intentions of participating in HPDE as I do not want the coverage contested in the event of a loss. The purpose of this policy is to provide my family the financial resources they may need in the event I die.

Most of the life companies that he queried are not familiar with HPDE or lapping and therefore do not know how to rate the risk. Therefore, I am curious how others (that seemingly have a lot to lose) insure themselves while conducting these activities?

Any insight and guidance is appreciated.

Thanks,
Adam

 

I went through selectquote and had a Prudential policy for awhile. Some where on the application I listed HPDE. They did not seem interested at all. (Racing may have been a different story.) Much more focus on health/ medical history. I dropped the policy a few years ago.

 

This is an educated personal opinion but HPED would be a gray area. Auto racing, sky diving and skin diving is high on the list of things to avoid for life companies. They are also very in tuned to health issues.
Other areas less so.

I would guess that a good broker or wholesaler who deals with many companies could better address this.

 

I have multiple life insurance policies, and I am a current licensed IMSA/FIA/etc driver....so when we updated our insurance, I was full disclosure.

Our broker had me complete a "high risk activity" disclosure - (that's what I called it, there is an official name). As I had previously been a technical diving instructor, skydiver and done some alpine mountaineering, I had to cite my "retirement" in a few areas

For the racing stuff, I essentially wrote an affidavit that was packed with facts and with external references (eg. I only race in a sanctioned series, the car is professionally maintained, all events have on-site fire/rescue, et al).

For DE, one of the reasons it's CALLED "DE" is that it's not racing. Your agent (if he/she is any good) should be able to look through the prospective policy language for exceptions and exclusions, including those that are disclosure related (i.e. they'll cover you for Russian Roulette, but only if you disclosed it).

As a broader comment, the connection between "wanting to track more" and "wanting more insurance" should really not be connected. You have a much bigger chance of meeting your maker OFF the race track, and if for some reason you think you are taking "risks" in a DE, you're potentially doing something wrong!

Happy to introduce you to my agent - he works with a LOT of people I track and race with, he gets it.

 

As mentioned, your chances of death at an HPDE are next to none. If you want extra protection, get a DISABILITY policy. A lot more chances of using that one over life.

 

It all depends, I've been to an event where someone didn't make it and it was even in an intermediate run group.

It depends on what kind of safety equipment you are running.

 

Adam, sounds like you joined the Autobahn Country Club. Very nice place. I'm sure someone there can also answer your life insurance question.

 

I did disclose DE driving when I had my supplemental insurance interview and they specially asked if it was "auto racing" to which I responded "no, it is not racing or even a timed event, just enthusiasts driving their cars on the track with instruction." They lumped it in with mountain biking, snowboarding, scuba diving, and all the other things I do for recreation and didn't require anything more specific.

I agree with most of the comments here that the potential for a fatal accident at a DE is very low. Better chance of a drunk or smartphone distracted driver taking you out.

One thing I will mention is to NOT selectively alter your cars safety equipment. I know this sounds counter intuitive but I've personally seen the results of poorly thought out safety "enhancements" like installing aftermarket seats and harnesses (and disabling the airbag position sensors). Leave the car completely stock from a safety perspective (3 points, airbags, tires, traction control) and you are much more likely to walk away from any accident. If you decide to add safety or driver stability enhancements please work with a knowledgeable pro on all of the components required to be safe with bars, harnesses, HANS, etc as a complete package.

 

Do you race? no
Did you get additional driving training? Yes
DE Driving Education.

My questionaire asked me about dangerous activities and I do t do any.

 

No one here runs PCA racing, SCCA racing, Chump Car, or even LeMons?

 

Should not be an issue ..... general lines agents not as adept at life and disability insurance.....my wife runs high end life and disability insurance business: all carriers ..... pm if specific help needed and I can connect you.....

if no specific contact/ direct help needed..... annotate HPDE on insurance app ...... can also get a tracking number from carrier underwriter/ agent to reference as pre disclosure..... those facts annotated become part of the "entire contract" of the policy....

for racing etc a separate avocation questionnaire has to be completed and different carriers are more comfortable with different risks, tobacco, health, avocation etc.

wife's informal and quick feedback.... GL

 

Certainly some good points here! I do not feel that I am taking risks while driving on the track but the fact it is it is a slightly high risk activity. There can be mechanical issues, other drivers, oil and debris left on the track, etc. that can lead to harm. In no way am I reckless but I also recognize that there is a risk and I want my family protected.

 

Yep, I already have a nice disability policy in place as as well. Good idea.

 

Yep, I joined Autobahn. That's a great idea! I will ask someone there if they have any recommendations as well!

 

All:

Thanks for your responses and insight. There is a lot of good info in here for me to work with. I will discuss some of this with my agent and see how it goes. If I am not happy with he direction or responses I receive I plan to PM several of you to discuss more offline.

Thanks again for the replies.

Adam