Insurance for driving school

I don't wanna be a D!@K but actually most states use a standardized auto policy and the state insurance commissioner normally mandates certain coverages or exclusions. As for NC, the state ins dept does not allow a "motorsports" exclusion on a "standard personal auto policy.

Shop around a lot and read the fine print on those "on track" policies, many have details that will mess you up!

I can appreciate where you are speaking from JHall, but I need to correct something you have written.

Generally speaking, Insurance Commissioners are not legislators so they don't mandate anything. Now because each state has specific laws and regulations, the state commissioner job description can vary from state to state. However, they really only regulate the insurance industry within their state and act as a consumer advocate.

Furthermore, the ISO (Insurance Services Office) sets a standard policy state by state and it is commonly approved for use by each State that uses it by the DOI (Dept. of Ins.). Carriers can choose to use it, or not, and are not required to use it. However, if they don't the Department of Insurance does have the authority to approve or disapprove its use based on how it stacks up to the states laws. So, only if there is a State law saying that there can be no motorsports exclusion can the Commissioner enforce that kind of thing.

That being said, the standard auto policy the ISO puts out is usually written with the premise that competition and or contests of speed are not covered. As we have evolved as automobile driving society, the issue of taking personal autos on tracks to push them closer to their limits has caused a change in policy verbiage. The reason is simple, because the policy was not designed to accomodate that kind of risk and to be quite honest, they didn't think far enough ahead to address this exposure. It was written to cover your personal automobile on regular streets at posted speed limits. In short, it's a loop hole.

As more and more of these events are held, claims will take place and they carriers will get wise to it. Some already have and they quickly updated their policies. Others will catch up as it is only a matter of time. So the best thing you can do is call your specific carrier and ask a specific question about your coverage and how it applies to HPDE's. Don't just take some CSR's comments for law, ask them to show you where the verbiage is in the policy and read it for yourself.

I say this all with just short of 20 years in the insurance industry and having both underwriting and claims background.

I see this comment time and time again. Truth be told, I don't blame you for getting that message from the way some policies are worded. What you have to do is read the policy word for word and apply them both individually and as a whole.

The policy would never preclude you from normal travel on a public roadway while simply driving somewhere. It violates the basic premise of the policies existance. One must read the both the section for which coverage is sought. Then read the exclusion section for that same coverage to see if the usage you plan to engage in is not covered. I know, I know, it is not easy to do and sometimes can be difficult to navigate, but I didn't write the damn thing!

In general, most exclusions for racing, motorsports, speed contests, etc. have an exclusion that doesn't cover you while on that surface or participating in that event only. If you read the policy, as painful as that might be, you will most likely see what I am talking about.

Check the exclusion section(s) of your policy. Look in both the liability and physical damage sections, specifically.

If you have a pdf of the policy, attach it and let me find it for you. I read these things all the time.


Again, and I can't say this enough times, EACH STATE IS DIFFERENT AND A SPECIFIC CARRIER MAY HAVE DIFFERENT POLICIES FOR EACH STATE. Several times I have seen a policy exclude one thing in one State, but not have the same exclusion in another State. YOU MUST READ YOUR STATE SPECIFIC POLICY. I keep reading people posting general statements that are opinions, not fact, and usually not for a specific State.

I've been a lawyer for over 25 years. I know how to read an insurance policy. The clause to which I referred excludes coverage if the vehicle is AT a racing facility. This clearly excludes coverage even if you are only there as a spectator. I never suggested that it excluded coverage on the way to or from ...