bkniep

I just received a phone call from my insurance agent (and a PCA DE instructor) who informed me that from May 1, State Farm will no longer cover DE event damage. My guess is this will encourage all the other companies to follow suit over a couple of years time. Makes one a little more cautious about the track with no safety net.
What companies are sitll providing this sort of coverage? Does anyone but supplementary track day insurance?
Thanks,
Bill

wagongotya

Business model is directed specific to the DE crowd...

http://hpdeins.locktonaffinity.com/Default.aspx

Spartan

Also just bc State Farm didnt have it in the policy dosen't mean they would actually pay out for damages caused at a DE. Thats a fine line people walk when they claim damage at a track on they're "street" policy. Most other companies have already excluded DE's or ANY event that takes place on the track so if State Farm is doing this now they are last ones to be doing so.

Pony up the $$ for DE coverage or track at your own risk

Texas993

Thanks for the link. I did the quick quote and it seems reasonable.

wagongotya

Yes very reasonable, $300-400/track event insured @ $75k

dbf73

either that or buy a disposable track car

chris walrod

Does this mean State Farm will reduce my rates by some equal amount to the risk/covereage exposure?

Yeah, I will wait by the phone.

I still cant understand why rates dont decrease as cars depreciate. Then again, there are lots I dont understand about insurance companies.

Texas993

Are you suggesting that our 993s depreciate?

TheOtherEric

AFAIK State Farm decided to not cover DE claims a year or two ago. And even before that, it seemed pretty iffy.

I now use track insurance and the piece of mind is worth the cost.

bkniep

My agent has worked at least a couple of claims through State Farm. He is now saying that they are writing exclusionary language into all policies.

Boy, a weekend at the track gets pretty nutty by the time you factor in brakes, tires, DE insurance, etc. Sighhh.

Steve Weiner-Rennsport Systems

Because the cost of repairs (parts, materials, & labor) doesn't go down over time.

viperbob

But since the cost of total loss does decrease dramitically as a car depreciates their liability exposure also decreases meaning the insurance costs should be cheaper.

pstoppani

I'm guessing fender benders are a lot more common than total losses and these benders don't get any cheaper; at some point, they actually get more expensive.

Also, as cars get older and they become more affordable to younger buyers, the fender bender incidents go up; thus, we all pay more. I saw this with my E36 M3 (it actually cost more to insure than a new 996!).

viperbob

Yes fender benders are more common, but with the value of vehicles being less the overall loss is decreased. For example, a '97 Boxster with a book value of $7K these days gets in an accident in the rear end. The insurance company will total a car with over $3xxx in damages. That is nothing on a car like that. So the insurance company pays off the claim at $7K for the car, sells the car as salvage for $5K. Now say the accident happened 4 years ago. Guy was paying the same premiums as today (not uncommon). Car value was $17K. Now same accident and that total damage is $7K. So insurance company pays out that amount. Their exposure to liability is increased dramtically earlier on with the same car, and decreases over time. So why do premiums not decrease? I think that was the question to which I was responding.

Kein_Ersatz

What is the difference between Insurance Companies and bookies? The latter would have never covered the spread on sub-prime

Premiums only decrease with market pressure (and after actuaries say it is prudent). Not happy with premiums, only option, shop it around. Also reevaluate you deductibles to determine what you can afford out of pocket and take on the risk yourself.

It is amazing how many people stay with the same provider over time and all the little incentives the providers offer to lock you in. It would be interesting to see the ration of customers leaving a provider versus being dropped by the provider.