dgrobs

Very interesting experience and info. Thanks for posting...

nowata

I have yet to read a situation that really justifies track insurance.

if my car was under $30k I wouldn’t bother. I’d risk it and if $30k was all I could afford for a car then tracking probably isn’t something I should do anyway (tires gas brakes etc). You really gonna shop around when you’re in that club?


if it was over $100k then I would have the means to cover it and not complain about the cost of membership. It’s an if you have to ask scenario. Don’t buy a jet if you’re gonna bitch about ramp fees.

It’s the middle range that really hurts...where the car is worth just enough to cry if it’s wrecked but the insurance is not an insignificant expense. $70k thru Hagerty is $400. Basically doubles the track fee. Same old middle class gets screwed kinda deal.

Manifold

I don't see a contradiction between having the means to self-insure yet still buying insurance. It just comes down to wanting to pay a small amount in order to eliminate the risk of having to pay a large amount, thereby capping the 'loss' one is exposed to.

Digitalwave

What a ridiculous statement.

DTMiller

There's been some whoppers lately but this is in the running for some kind of award.

There are like, literally, thousands of sub $10k cars on racetracks every week.

Thundermoose

And they often crush the egos of drivers in more expensive cars.

DTMiller

In the right hands a base Cayenne can be quite formidable.

Manifold

Count me among those who track a relatively expensive car (GT3), but have many times considered tracking a Miata. Getting 80-90% of the fun for 10-20% of the cost has its appeal.

Obturate

You most certainly aren't the only one with those thoughts.

aalencar

^^^^+1000. Statements like that are on a par with a GT3 not giving a point by to the miata that is glued to its mirror for laps

LuigiVampa

Everything is relative. Some guys have saved up to buy a $10k car, and others bring multiple cars worth over $250k to the track at the same time.

What someone can walk away from is a very personal financial decision. I insure a car valued around $90k because I couldn't justify balling it up and just writing a check for a new one. That being said, my last car was around $50k and I insured it as well.

My tolerance for financial risk is low so not only do I insure, but I insure with a race policy, which is far and away the most expensive policy out there. In the past, when I did not have a race policy I have used OnTrack.

It's all relative.

hf1

Insurance is also related with expected returns on investments and liquidity. Even if someone is able to self-insure (i.e. has the net worth to self-insure), in order to self-insure against a $100k loss, one must keep $100k handy either by holding it in cash, keeping a line of credit (ability to quickly borrow), or keeping it in low-risk liquid assets (T-bills) -- all of these come with various opportunity costs on potential investment profits foregone. This should be compared with buying insurance for the potential $100k loss and investing the $100k in riskier and less liquid assets for higher expected returns. If the expected returns on the invested $100k are higher than the insurance premiums, then buying insurance would be financially savvier vs self-insuring. If on the other hand, expected investment returns are low, or someone is already sufficiently exposed to investment risk, then keeping the $100k liquid and self-insuring would make more sense.

LuigiVampa

Or just take the risk, and if they ball up their car, they walk away from the sport.

hf1

And there's that too -- leaving it in God's hands whether and how long they should remain in the sport vs. deciding themselves.

David993S

Just an FYI regarding Hagerty-RLI HPDE Insurance.

I've used and recommended them for the past two years and the rates were very reasonable. Last time was Oct. of last year and the HPDE policy I wanted was $205 (same price for the past two years). I just applied for HPDE insurance for a June DE, exact same coverage and deductible........and the quote was $415 !!
Guess I'll look elsewhere and can't recommend them now..