Race Car Insurance
- NOT a Drag
Historically, drag racing was
the "bad boy" of motor sports, without rules or regulations,
and with precious little to me earned from winning races. Today,
whether you're driving a car, or merely content to own a vintage
vehicle and participate in shows, there's still an essence of
edginess. Being edgy, however, doesn't mean being reckless. Your
dragster or funny car is an investment, and you have to protect
it. As part of that protection, you need a good insurance policy.
It doesn't matter how secure
your garage is, things can still happen. Maybe the roof leaks,
or maybe you forget to lock the door a bit too often. Having
insurance on your dragster will help protect it from both these
things. You can't use just any insurance company, however. You
need insurance designed for dragsters and other collectible cars.
There are many specialty insurers
who cover race cars, and while the details of coverage vary from
company to company, the general rules are the same:
- Coverage and Losses: Race car insurance is specific to dragsters
and other race cars, not vehicles that are street-legal and registered
as such. Coverage includes the car itself as well as any parts,
tools, and trailers used in connection with it. Covered losses
are generally fairly broad, though it is common to see policies
with exclusions for nuclear peril and wear-and-tear, and it should
be noted that dragsters are not covered while on the track during
a race, but are covered while moving between the track and garage
at an event. Of course, theft is also covered. It is important
to know that there is no liability coverage with these policies.
- Determination of Value: Unlike a normal auto policy, race car policies are based
on the actual cash value of your car, including upgrades and
add-ons. As part of the process of placing insurance, you'll
discuss your car's current value in depth, and provide documentation
of any aftermarket repairs or additions that affect the value.
While appraisals may be required for extremely rare vehicles,
not every insurance company will need one, though most will consult
National Dragster or Drag Review as a comparison
or guideline.
- Premiums and Deductibles: While the actual premium you pay will
vary depending on the value of your car, most race car policies
on standard dragsters will be between $500 and $800 / year. Rates
are tailored to each driver and car, however, and also take things
like existing safety precautions into consideration. Most specialty
insurers offer monthly payment plans, but charge $3-$5 / month
extra for such a feature. Deductibles can be as low as $500,
and do not generally increase because of theft, but can sometimes
be reduced in exchange for higher premiums.
- Premiums and Deductibles: Race car policies tend to be pretty
flexible, so if you buy, rent or lease a new trailer, adding
coverage is not difficult. As well, most specialty policies for
race cars are compatible with the requirements imposed by banks
and leasing companies.
Shopping for a specialty policy
is as easy as pointing your browser to the web, but you should
never go with the first company you find - compare several and
find the right insurer for you. Not only will you save money,
you will also be sure that your dragster or funny car is protected
the way it should be, so all you have to do is maintain it, and
take it for the occasional spin at your local speedway.
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