Lockton Affinity.

 

A few of my thoughts on track insurance:

Regarding liability, I agree that everyone is pretty much on their own. I'll bet the waiver that you sign when you arrive at the track states that (I probably should have read it ). Moreover, I'd think it would be really difficult to assign fault in most on track accidents. Since there is no vehicle code or traffic laws in effect, someone would have to be doing something blatantly negligent (like driving the wrong way on the track?) to be liable. Any lawyers out here who could comment?

Regarding insurance -- for my track event last week, I signed up with Lockton Affinity (http://hpdeins.locktonaffinity.com/Default.aspx). The sign-up was online and easy, and the rates seemed reasonable from what I could tell. There is a PCA discount, but I think it might be just for PCA events and/or multi-event coverage. One tip I figured out was to have a stated value a little below the full KBB value. Your deductible is 10% of the stated value, and the premiums are directly tied as well. I know -- if I totaled the car, I would only get up to the stated value. But I figured that if I totaled the car, I would have more things to worry about than the car (the least of which would be that I would be killed by my wife, assuming I made it home alive ).

 

+1!

 

[quote=Steamboat;3174907]I have sent an email requesting clarification to Ken Laborde, chairman of PCA's Insurance Committee, and will post his response when I receive it. My email follows:

Ken,
I am a PCA member and avid DE participant in the Rocky Mountain Region. Much to my chagrin, my State Farm agent tells me that none of my insurance is in effect while at the track. This not only includes my customary auto coverage but also liability protection afforded by a separate umbrella policy I carry. So, the question is, does the waiver everyone signs and the insurance policy that PCA carries for these events afford individual drivers property and/or liability protection in the event they cause another driver harm and are sued as a result. Or, am I really running bare and just taking my chances? Any clarification and detail that you can provide would be greatly appreciated. Thank you.

Well, that was quick. Mr. Laborde responded with a 7 page paper he authored on the subject and which is posted somewhere on the PCA website. Due to its length I will not re-post it here but if you are a PCA member you should be able to access it if interested.

The bottom line is that PCA event insurance provides liability coverage for all participants (i.e. drivers, volunteers, instructors, etc.) who sign the obligatory waiver with the following exceptions. It does not provide coverage for (i) cars used in the event or for (ii) damage that may be done to track fixtures. In other words, your car is your responsibility as well as any armco barriers, etc., that you happen to take out. Seems reasonable to me.

Big thanks to Ken Laborde and PCA National for having this figured out. Best,

 

[quote=Steamboat;3175181]Well, that is pretty cool and a little relief!

 

Your agent suggested you commit fraud? Interesting! In Virginia, insurance has covered the car for a PCA DE Event. The wording for on track use is ambiguous at best. I have never seen liability for property damage to others play out, but damage to one's car has been paid by insurers like Progressive, GEICO, Nationwide, and State Farm. Remember Auto Insurance is state specific so policies will vary from state to state.

I have been an insurance agent for 30 years. When my customers ask me if their car is covered, I suggest they read the policy first. Then I tell them claims have been paid. But I never say "you are covered."

The best way to be sure is through the purchase of a separate policy covering track events. PCA has endorsed one but I have no experience with the program.

 

He wasn't my agent, but he's a full time insurance broker.

 

Thanks for doing this. The issue I am concerned about is liability to others if I harm thier car or thier person. Wrecking my $50k car is not life or death, but if I blow a tire and slam into another drive and kill them, what happens if thier family sues me for $2 million? AFAIK, the waivers release the track owner from any liability, and there is nothing there at all to protect you from third party liability if you cause harm to someone else.

I just need to quantify the risk. The $50k death of my car will not break me. A million dollar lawsuit from another driver would.

 

You're welcome. You did see the response from PCA above, no???? It's good news! I agree completely with your assessment too. I can deal with the loss of a car; my future, not so much. Best,

 

Who is the insurance company underwriting the liability?

 

No clue. Check with PCA, I suppose.

 

_________________
I may not have responded appropriately to your question in my post above. Sorry.

Based upon Mr. Laborde's response and from what I have gathered while previously exploring this topic, the PCA policy (which typically is $10M per event) would defend the rights and obligations contained in the waiver, i.e. each participant agrees to hold each other harmless. Should someone decide to name you in a wrongful death or injury suit anyway, the policy would rise to your defense on the basis that there are no grounds for a suit. Should a court decide otherwise, the policy should pay the judgment. Not much personal exposure there, I think.

With respect to damaging someone else's car, that's probably a little more confused since there is no coverage for that. I suspect that if you were involved in contact, the burden of proof for liability would fall on the accuser and, frankly as someone else pointed out above, that's not particularly easy to do in a track environment. That said, you would probably be responsible for mounting your own legal defense and for any judgment should it be awarded. Even so, remember, you still have the waiver acting on your behalf which basically says, "thou shalt not sue" your fellow track companion and it would be a hard case to prosecute. Also, the truth of the matter is, if you are at fault, this would likely be settled out of court for damages. Again, a bad day but not a ruined future. And, fwiw, I've never heard of this happening anyway.

I've spent a lot of time thinking about this. There have been too many lawyers in my professional career (many thanks to those representing me in any event) but I've gotten pretty comfortable with what PCA has put in place and intend to participate fully this year. I hope you do too! I think the risk is diminimus. Best,

PS I am not an attorney so don't think this advice is worth any more than you are paying for it!

 

Yes, so I assume then only PCA events have this type of liability coverage, and non-PCA events may not.

I do find it interesting how flippant so many people are about this issue, and have a "just do it" attitude when without understanding how this stuff works, it could be life ruining.

 

__________
I suspect most large organizations (SCCA, NASA, etc.) have something similar in effect although I haven't checked. I would if I were going to run with them, however.

The largest source of potential problems is with small organizations which aren't in the business of doing this full time but which put on an event or two each year for charity or whatnot. They probably don't know what questions to ask or find the insurance costs to be prohibitive. Those are the ones to watch out for. Best,

PS Re: Flippancy. The last time this topic came up I received some negative reps from someone who thought I should just let it rest. I don't understand that if you can afford to drive a Porsche and don't understand this topic thoroughly. Just sayin'.......

 

Yes, potential bankruptcy from a lawsuit is one thing if you are young and are worth $10k. Most exotic car owners who track thier cars have significant personal wealth that needs to be protected, and are often too old to have adequate time to rebuild thier lives too. I realize its not likely, but I'm sure it has happened.