A Brief Look at Race Insurance: What Does It Cover and Who’s Responsible for It?

Racing is an exhilarating sport, especially for the drivers. Imagine flying across the track, your heart pumping along with the roar of the engines and the crowd as you push your powerhouse of a car to its limits.

But high speeds also mean high risks. Devastating crashes are not unheard of, often resulting in grave injuries and even fatalities. Have you ever wondered who foots the bill when there’s a big crash on the track? Today, we’re going to explore the ins and outs of auto racing insurance.

Who Insures Race Car Drivers and Their Cars?

Typically, companies will cover their drivers, racing vehicles, and pit crews. Professional race teams have insurance built into their contracts.

Hobbyists and other non-professional racers are covered by their personal insurance first and foremost. Some racing promoters will offer additional coverage for fees that surpass a participant’s personal insurance coverage, but that depends on the promoter.

We’ll be going into more detail in the next few sections.

Who and What Does Auto Racing Insurance Cover?

Naturally, those on and around the track itself are some of the most at risk on race day. Auto racing insurance generally covers the drivers, their pit crew, and the vehicle itself. While we aren’t legal experts ourselves, here are some interesting facts we’ve learned about how each group is typically insured:

Race Car Driver Insurance

At many tracks, race car drivers need to sign a waiver and release form that indicates that they know the risks involved in racing.

The waiver is meant to legally protect the promoter from potential suits. These waivers usually have a section about coverage in case of an accident, but it isn’t always there.

Most promoters have Excess Medical Benefit though, which covers claims from the participant that exceed their own personal health insurance limits.

With this benefit, drivers will have their personal health insurance as their first line of defense against hospital bills. The track’s excess medical benefit will typically only take care of the costs that the driver’s insurance can no longer cover.

The health insurance of professionals employed by a specific team is usually covered by their employers. Some insurance companies compete for deals with professional drivers in exchange for publicity.

In addition, certain states have laws that demand compensation or disability coverage for both employed drivers and independent driver contractors.

Finally, there’s also extra insurance from organizations like the Short Track Independent Drivers and Associates (STIDA), which cover drivers according to the tiers they sign up for. This extra insurance also offers additions like disability insurance and general liability coverage.

Pit Crew Insurance

Just because they aren’t behind the wheel doesn’t mean they don’t need insurance.

The pit crew is constantly rushing to fix up their team’s vehicles, and in a spot where drivers are often speeding in and out. Like drivers, pit crews are typically employed as part of the team, and thus, their employers are responsible for providing their health insurance.

Race Track Car Insurance

Finally, the race car itself needs insurance. Race vehicles cost a lot to build and maintain, and it’s no surprise that the team or individual who owns one would want them insured.

Racing teams typically insure their vehicles with specialized insurance companies. These companies base their policies and prices on vehicle values and competition schedules.

The more races a vehicle is scheduled to compete in, the more costly the policy. Other racing assets such as facilities, trailers, tracks, and tools, also need insurance.

Race Car Insurance

There are two types of race car insurance: off-track and track-day insurance.

Off-track insurance is for instances when the vehicle isn’t in a race. It can cover the vehicle when it’s in storage, on a trailer, or in the paddock. Off-track insurance also sometimes covers the trailers themselves as well.

Track-Day insurance is for the race day itself. It covers more than standard auto insurance. This insurance covers the vehicle from the time it enters the track grounds until it leaves.

There are insurance companies that cover both street-licensed and non-licensed track cars, and some even offer insurance for drivers as part of their package.

The Importance of Racing Insurance

Having racing insurance is a precaution that protects drivers, team companies, and pit crew members.

While many race promoters will cover some of the excess charges not covered by personal insurance, it can never hurt to have another line of defense. Worrying about potential hospital bills or repair costs can affect a driver’s track performance. Having the peace of mind to focus on the race ahead can help them while driving.

Standard insurance companies won’t always offer to cover a racer, so it’s nice having the option to go to a specialty racing insurance company for your on- and off-track needs.

Ultimately, if you plan to drive on a track, you should do your research, read the fine print on any waivers you sign, and drive as safely as possible even in a high-stakes racing environment. Having racing insurance isn’t an excuse to be reckless, after all. Take stock of your options and pick the one that suits your budget and requirements best.