Steamboat

I just returned from a disappointing meeting with my State Farm agent which largely centered upon DE track coverage. In a nutshell, State Farm, and all the other major US carriers, do not provide ANY type of coverage while on track. This not only excludes comprehensive coverage should you wad up your car but also liability coverage which is by far and away the more important component should you injure someone. Additionally, even umbrella liability riders are not in effect while on track. About the only suggestion they could offer was to see if Lloyd's of London or other large re-insurer would write a one-off policy.

I find it difficult to believe that everyone in the Porsche socio-economic cohort who enjoys DE events is simply ignoring this situation or choosing to go bare. As a group of individuals, generally speaking, we are probably better off financially than most and relatively speaking have a lot more to potentially lose. Doctors, lawyers and business people know this all to well and also know that once a law suit is filed things can get nasty and expensive in a hurry especially if you are responsible for your own defense and ultimate settlement costs. I also have never met anyone who purchases event-specific insurance as endorsed by PCA which is both very expensive and doesn't address the liability component to the best of my recollection.

What am I missing, is there a work-around or is doing a DE just predicated on the hope that "$hit don't happen"?

beentherebaby

Many folks "hope" nothing happens. Many DE registration releases in theory prevent lawsuits but they are pretty much worthless in the U.S. where anyone can sue anybody for anything real or perceived.

Some folks purchase DE vehicle/track damage coverage from various sources such as Ontrackinsurance, Lockton, Lloyd's, etc. Both event and seasonal DE policies are offered by these companies. I have read that there are a limited number of companies that will write liability coverage also - for a hefty price.

931guru

If you can't afford to write it off, keep it off the track.

beentherebaby

As the thread title states, the OP is concerned about LIABILITY coverage, not the vehicle so much.

Jim Michaels

Steamboat: One can get DE insurance easily enough. Search "DE insurance" and you'll probably get as many DE insurance threads as I did.

Matt Romanowski

PCA has a liability policy that covers everyone who signs the waiver. You are covered for liability when doing a PCA event. For more info, contact the National Insurance person listed in the back of Panorama.

As for comprehensive coverage on your car, that is up to you. I'm of the opinion that you have to be willing to lose it, but you can get DE coverage for you car from multiple sources. Do a search for more info.

Scootin159

I don't know about the PCA's policy, but I do know that the SCCA's insurance works much the same way as what Matt described. Each participant is covered to $10 million in liability, through the SCCA's insurance. The SCCA can only get this level of coverage at an affordable rate, because everyone who enters the gates, must have signed a waiver. However, it's not the participant who's betting that the waiver works, it's the insurance company. Because if the waiver doesn't hold and you're sued, you'll still be covered for up to $10mil in claims.

More info: http://www.scca.com/contentpage.aspx?content=83

I imagine that the PCA, BMWCCA, NASA or any other car club's insurance works much the same way.

SundayDriver

That is just flat incorrect. Some insurance cos are writing language into their policies that exclude on-track incidents. It varies by company and by state - each policy for State Farm must be approved by each State's insurance board for changes. Your agent is poorly informed and what they say does not mean anything. What counts is the language in YOUR policy and YOU need to read it to see if you are covered or not.

There seemed to be a move to exclude track events that seemed to gain some momentum a few years ago, but it does not seem to have really taken hold. If your policy excludes track events, you can shop around, but it is a tough question to ask in the shopping stage. Maybe a Rennlister can help you find a carrier.

There are many threads about insurance for track events and you can search to find those. You are also "protected" from liability with the waivers that everyone is supposed to sign. Of course, that is a gamble to some extent - some slip through the cracks and never sigh the waiver, and even a valid waiver that is upheld, does not stop the legal process of someone going after you.

BlackRain

Recently reviewed renewal of State Farm Policy. No exclusions for DE related activities. Agent confirmed coverage for "DE's"

onefastviking

In the past a few of the policys had been written to exclude "racing" and "timed events" which is one of the reasons that at some DE's they wont run a transponder even if the track has a loop and could easily do it.

As stated previously check your individual policy to be sure. I know of a few that have had no problem with vehicle coverage.

As for the liability of injuring someone else. This has been tested and since we live in the USA there is always an atty that will try to prove a gross negligence and sue the sactioning body, insurance company, you , me, and the guy that fed us lunch that day if they can remotely justify it having an impact on the accident. If your net worth is of that great importance to you then you should discuss an umbrella with your agent. It can be done for DE's since it is just a DRIVERS EDUCATION EVENT.

Hope that helps,

Steamboat

I sent a couple of emails to our regional PCA officials who forwarded them to PCA National. Ken Laborde, National Insurance Chairperson, responded,

"On the contrary our policy does provide defense and indemnity up to the $10MM limit for participants who have signed the waiver and get sued in connection with their participation in the event. Please let me know if you have any other questions."

Very good news indeed and amazing turnaround! Just remember to sign the waiver.......

LDadrenaline

I think at bare minimum even the small clubs are required to have at least a million dollar policy. you are fine.

PJorgen

I would talk to another State Farm agent. I have this discussion with my State Farm agent every year at renewal time and have it in writing that I am covered for DEs.

I also have personal knowledge of someone who wadded up his new Cayman on the track and was covered by State Farm, although he did have to fight for some time to get the money.

However, I have heard that coverage differs by state so my experience is only valid in Cali.

beentherebaby

Always read the fine print. Now days a million dollars of coverage wouldn't even cover legal fees... This is America... the land of opportunity! You too can become an instant millionaire... or lose everything.

jbossolo

Now, on a similar note (sorry for the "thread jack"), how would one go about insuring a track car that is not street legal, and hence, has not been registered? I bought "transit, storage and paddock" insurance for my Radical SR3 through PCA. It covers the trailer, my equipment, and the car, except while it's being driven "under it's own power". Is buying single-event HPDE insurance my only option?
Thanks in advance for your input.