Finding car insurance can be tricky, especially when so many policies seem to be similar on the surface. How do you know which one will best suit your needs? But have you ever wondered about racing insurance? For drivers who carry far more risk than regular road drivers, the factors taken into account when putting premiums together are quite different – and a lot more complex!
In this primer, we’ll outline the main differences between regular driving insurance and racing insurance: a great way to learn more about not only the different types of auto insurance but how premiums and policies are calculated.
1. Scope of coverage
Regular insurance protects you against risks like accidents, theft, and damage that might occur in regular traffic conditions. It protects against liability claims and personal injury but specifically excludes high-risk activities like racing.
Racing insurance, on the other hand, is tailored to motorsport activities and covers the unique risks presented by the sport: things like damage during competitions, liability for injuries to competitors and spectators as well as other drivers, protection against vehicle damage or destruction at high speed, and even race-related equipment.
2. Premium considerations
Regular insurance providers will consider a driver’s history, vehicle type, location, and likely usage when creating a policy.
Racing insurance providers will take into account things like the driver’s racing history and experience, and the type of racing they participate in – this because each type of racing carries its own set of risks.
3. Liability protection
Regular insurance usually provides liability coverage for accidents caused by the driver, protecting the owners of damaged property or the recipients of injuries from the accident.
Racing insurance offers a broader range of liability protection, which may include coverage for accidents involving other competitors, racetrack officials, spectators, and others. This reflects the higher levels of risk in a racing environment, and the need to ensure all those exposed to this risk are protected as much as possible.
4. Vehicle value
Regular insurance claims value the vehicle based on market value or agreed upon value at the time of its loss. And in most circumstances, the vehicle you’re driving will be worth a fair amount less than a professional race driver’s!
Racing insurance takes into account myriad factors alongside the base value of the car, including modifications, performance parts, specialised equipment, and anything else relevant to the performance of the vehicle. Because racing cars are usually heavily modified, the policy extends to cover all these modifications accordingly.
5. Medical coverage
Regular insurance offers medical coverage for injuries sustained in regular road accidents for drivers and passengers.
Racing insurance also covers co-drivers, pit crew, event staff, spectators, and others. It may also include medical expenses related to specific racing-related injuries.
6. Event cancellation and race fees
Regular insurance policies do not cover these things, as they aren’t relevant. This is the first area we’ve covered that only racing insurance covers.
Racing insurance will protect against event cancellation, ensuring competitors or teams are protected against financial harm if a race is cancelled, whether this be due to weather, injury, or other unforeseen circumstances. This may also extend to entry fees and other costs related to the race.
7. Mechanical failure
Regular insurance doesn’t often cover mechanical failure as this is considered a maintenance issue, and car owners are expected (and legally required to) keep on top of their car’s mechanical performance.
Racing insurance is likely to offer protection against mechanical failure encountered during a race, as well as any required recovery from a track. This is to reflect the much higher stress that racing cars endure compared to regular road vehicles.
Drive with confidence, wherever you drive
The most important thing with insurance, regardless of type, is that it reflects the particular risks you’re likely to encounter. Car insurance policy providers may ask a lot of questions during the application process, but this is only to ensure that your policy offers the right levels of protection. The effort involved in finding the right policy for you is more than worth the peace of mind afforded by such a policy.
The same is true for motorsport insurance. Specialist providers will invest time and effort in creating a bespoke insurance policy for each and every one of their customers: one that reflects the relevant type of racing and takes into account driver experience, vehicle type, and any other relevant factors. By buying your motorsport insurance from a specialist provider with years of experience, you guarantee peace of mind for drivers, team members, pit crew, and everyone involved in the competitive process.
