Competition Car Insurance
If you compete in car races and participate in open track days, you must have the right car insurance. This is especially true if you use your car for everyday use as well. Specialist insurance is the best route to go down as standard policies won’t cover modifications like bucket seats.
In this guide:
- What is Specialist Insurance?
- What is track day insurance and do I need it?
- Do I need to tell my insurer about any modifications?
- Will I be covered for regular road use?
- Expect to pay big
Purchasing a policy from an insurer that specialises in motorsports will ensure you are covered for a variety of claims and they’ll understand your unique requirements. Whether you race professionally, in a team or are a rally enthusiast, the cover you need will be best found with a specialist insurer. You can purchase race insurance to cover you for rally, race, hill climb and sprint competition events as well as track insurance for days on the track or club events. Standard road insurance policies will not cover this.
Track day insurance is not a legal requirement. However, if you are a car enthusiast and likely to take part in a track day you will not be covered under a standard car insurance policy. So, track day insurance may be worth considering. Even though a track day is an amateur event there is still a chance you could accidentally hit a tyre wall, another car or another car might hit you.
Track day insurance will mean you are covered for accidental damage, fire and theft during a track event. It does, however, exclude third party liability (you will not be covered for any damage you cause to another car). But this may not come as a surprise to you as drivers generally accept any damage is their responsibility on a track day.
Track day policies can be track specific, and some locations may be more expensive than others. For example, a track with a larger run-off area will likely mean that you're offered cheaper car insurance. However, you will not be covered for a competition, and track day insurance is an additional insurance specifically for track days. The good news is you can get cover for one event or all season, so it’s up to you depending on how regularly you attend track days.
There is a high chance you will have modified your car or purchased a modified car if you wish to use it for track days and competitions. Your insurance will be invalid if your vehicle is not made of parts that are approved for road use. When making a claim on a modified car, your insurer will want to know the exact condition that was in before the accident. The best way to deal with such extensive details is to declare all changes and modifications you’ve made to your car.
It’s also important to declare any changes, as modifications also impact your premiums. For example, if you have enhanced the engine to make it more powerful, your insurance will be more expensive.
It’s also worth noting, you can get cover for tool kits and any spares you may carry around with you.
Insurance for competitions will not cover you for regular use of the car. So think twice before you jump in your BMW E30 Race Car to buy a pint of milk. You will, however, be covered for trips to and from race events and car shows as well as officially recognised owner’s club meetings. You must be sure of when you are covered and when you’re not, as exceeding your cover limit could invalidate your insurance.
Insuring a car for competitions and track days comes at a price, and it’s expensive. It goes up in price depending on the type of activity your taking part in. For example, if you take part in drag racing a couple times of year, the price for your insurance will be very different from someone taking part in a single track day.
You may also have to take out more that one policy - one for track days, an off-track policy when your car is in storage, and another for the vehicle as well as personal accident cover which is particularly important if you take part in races.
The bottom line is that car racing and specialised car events is an expensive hobby and will mean you’ll pay premium insurance prices.