Track insurance

[OurCognitiveSurplus]

Last time I looked at the idea of 'track insurance' it either didn't exist, or was far too costly for mere mortals (i.e. seemingly invented for rich people who wanted to put the supercar on the track one time).

With that in mind, a fellow competitor at a recent CAMS event had a mechanical failure on track leading to an accident. Shannons is seemingly going to pay out a substantial ammount to mend the car.

I'm surprised, to put it mildly. Very good for the competitor (he's a good guy and I wish the best for him), but I thought CAMS has specific processes to stop people passing off track-incidents under road-insurance.

So does Shannons offer some sort of hybrid insurance with track coverage? Has anyone had an experiance with it? Am I missing something?

[deviant]

Shannons will insure your track car. I used it for my race car but the coverage was limited to it being at home, on the trailer or in the paddock at the track but not under its own power...so if someone reversed in to it while it was parked or if it got stolen it would be covered but as soon as it is running and moving the coverage stops.

Now I don't know if they offer more than that these days. Track insurance is a big thing in Europe now so they may have jumped on the bandwagon.

The driver may have been able to convince Shannons that it was a non-competitive event and made a claim on regular insurance.

The driver might have been able to prove negligence and used the legal coverage given with insurance to sue the other party.

Shannons may have agreed there is a claim to be had, paid out and will now take the other party to court to get their money back.

Personally I think that track insurance and claims is a slippery slope to go down. Once one is covered everyone else needs to be covered to protect themselves.

Interesting thread here: http://www.pistonheads.com/gassing/topi ... +track+day

[MattR]

You can get specific on track coverage for a variety of levels for different cars and activities up to door to door racing.

For my race cars I have laid up cover with Shannons to cover events where the car is basically not being dríven, loading and unloading the car is covered as well.

I have investigated on track cover many years ago when I was looking at buying a drive at Bathurst in a BMW super tourer when they ran a sprint event in support of the main race, It was going to cost a few grand to cover the car for $40k and pay out was only if the damage exceeded a fair amount, I think it was $20k, so if I bent it I had to make sure I bent it good. Basically it covered me for the worst case, but didn't cover me for mechanical damage if I buzzed the motor or any other bit went bang.

I do know of someone who does have motorsport cover on a 240Z for track days and sprints, and Shannons and VGL used to, not sure if they still do, offer a motorsport extension for certain vehicles and owners for tack events such as sprints, not door to door racing.

[JBT]

The Shannons PDS is probably a good factual source:http://www.shannons.com.au/library/documents/Motor_Insurance_PDS.pdf

Read page 34 for racing cover and pages 36 and 37 regarding anything to do with, at or near motorsport or a motorsport venue. This paragraph in particular:

Your vehicle being present at or upon a race track or
testing ground, or at or upon land immediately adjacent to
a race track or testing ground, unless:
•
you prove that your vehicle is there solely for a purpose
other than driving or riding or use in a motor sport event
to be conducted, being conducted at or upon the race
track or testing ground, or
•
cover has been provided under the racing cover option
and then only in respect of damage to your vehicle and
subject to the terms and limitations of the racing cover
option on pages 34 & 35

[mazmad]

Yeah not aware of any coverage that your friend received, OurCognitiveSurplus. I have - as Mattr said - racing car coverage from Shannons which covers it pretty much at all times when it is not under its own power.

[OurCognitiveSurplus]

The Shannons PDS is probably a good factual source:http://www.shannons.com.au/library/documents/Motor_Insurance_PDS.pdf

Thanks for the link. It does seem to me that the 'racing cover' would apply to the situation in my initial post, to a max of $20k.

RACING COVER

Available with: Comprehensive

Applies to: Motor Vehicles & Motorcycles

✓ If your motor vehicle or motorcycle is over 60 years old, or
this option is shown on your certificate, subject strictly to
the terms shown on your certificate, we will pay for loss or
damage to your motor vehicle or motorcycle if at the time
of loss or damage you are driving or using your motor
vehicle or motorcycle whilst participating in, preparing for,
practicing for or familiarisation for a motor sport event, but
only if the event is either:
• an event sanctioned by a motor sport governing body,
and your participation in that event requires a licence of
any kind issued by a motor sport governing body and
you are the holder of such a licence, or
• an event which has been approved by us in writing or
by way of endorsement to your policy.

We will not pay more than the lesser of:
• the agreed value of your vehicle;
• $20,000; or
• the cost to repair or replace your vehicle

[mazmad]

Does comprehensive require a car to be registered?

[Jeo]

Lotus?

[JBT]

Thanks for the link. It does seem to me that the 'racing cover' would apply to the situation in my initial post, to a max of $20k.

I'd be interested to know how difficult it is to get this cover and the current premium.

[OurCognitiveSurplus]

Lotus?

I don't want to name names etc until at least after the matter is resolved.

JBT - I went through the Shannon's online calculator and couldn't find any box to tick to corrospond with the 'track insurance' option.

[MattR]

For the track insurance option, to find out if your car would be eligible you would have to phone or visit them.

I dare say for a car that doesn't fit the description in the PDS it would be difficult and/or expensive.

There would be brokers who could find insurance for you, as basically insurance is just a bet that where nothing happens to your car the insurer wins, and if something does happen to your car in most cases you still lose.....

[deviant]

When I did my race car I just phoned and asked them about it, the chap was quite excited to be dealing with a motorsport premium. Was something like $400 / annum but as mentioned it was pretty limited in its cover. I was more worried about flipping the trailer or damaging other property towing it around than losing it on track.

Personally I think my car can sit in a pile and rot if I crash it or get crashed in to, that is the risk of going on track or competing in motorsport. I just don't care about it that much. When it is on the road it is covered by my regular insurance.

More important to me is what happens to my ability to contribute to keeping a roof over our head and the bills paid if I suffer a serious or permanent injury that prevents work or comes with big medical bills, house alterations etc or what happens to my partner if I get killed doing this. I have insurance to cover these situations, I was quite surprised to find that insurance companies are so accepting of peoples hobby / lifestyle choices and have motorsport specific forms to fill in. I was also surprised to find the premium is barely any more expensive than my partners who does not do any motorsport.

[sailaholic]

any more expensive than my partners who does not do any motorsport.

Probably because statistically (given the safety equipment used) your more likely to die of cancer - heart attack or motor vehicle accident on the road (as a guess).


Sent from my iPhone using Tapatalk

[deviant]

any more expensive than my partners who does not do any motorsport.

Probably because statistically (given the safety equipment used) your more likely to die of cancer - heart attack or motor vehicle accident on the road (as a guess).


Sent from my iPhone using Tapatalk

This is quite likely true.

The form also asked a set of questions that if answered YES would have shown me to be a paid professional / full time driver which I am sure would carry a massive premium.

It also asked what the maximum speed I hit at each event is

[evil_weevil]

When I worked there it was really offered to pre 1980's cars mostly, and post 80's ref to national manager. Conditions were the car had to be a race car, historic at that! you needed to be a CAMS member (also got you 10% off the premium - CAMS mates rates) and I think from memory it was only to be added at renewal period. now I left there in 2010 so no doubt some requirements have changed.

its limited cover, only covers you up to $20k
additional excesses on top of the basic excess, and depending on the car would cost close to $800 extra a year on top of the current premium.

if you had a pre 1940's car with shannons, it was actually included as part of the policy.

its not something they'll actively sell or promote - its a benefit they can look to offer their custmers case by case.