Another is that you’re covered when you drop your car off at XYZ chassis shop I can tell you too that 95 percent of the chassis shops out there don’t have insurance themselves.”Ĭonfident your racecar and the other contents of your trailer are insured under your trailer policy? Think again. But people believe that because their trailer is covered, that anything they put in it is covered - that’s another huge, huge misconception. “I’ve had people literally argue with me, and I tell them, ‘whatever agent is telling you this, have them send you an e-mail that says your racecar is covered, and if they’re willing to do that, then that’s on their errors and omissions. “This is probably the biggest misconception out there,” Lutz says. You can try to sneak a fast one on your insurance provider regarding the scenario that led to the damage should you have an accident, but we wouldn’t recommend it, and they’ll probably catch you anyway. If you own a street and strip car that’s insured under a traditional automotive policy for the road, as soon as you enter it in competition, your coverage is null and void. You assume all risk, and truth be told, speeding down the racetrack is only half of the risk you take when you own an uninsured racecar. Not on the track, not on the highway, not in your garage, and unless your chassis builder has a specific policy to cover the cars in his or her shop, not there either. Without an insurance policy like that which Chizmark Larson and COIS offer, your vehicle isn’t insured, period. – Mike Larson Let’s start at the top: your racecar. Lutz, whose business presently insures more than 2,500 drag racers nationwide, believes this is something that racing needs, and despite the cost, is invaluable to anyone who wants to protect their investment.Ī lot of my clients, I ask ‘how much do you think you have in your racing operation? It doesn’t take long to get over a couple hundred thousand dollars….you would be surprised. Pro Modified and 10.5-inch tire racer Bill Lutz, who owns Central Ohio Insurance Services in Pickerington, Ohio, along with Mike Larson and his Chizmark Larson Insurance agency in Joliet, Illinois, are two of just a small handful of such insurers offering policies on racecars and racing operations, with underwriting offered exclusively by Lloyd’s of London, a partially mutualized insurance marketplace in the UK. Unless you’ve done your homework, your investment is likely more at-risk than you think it is -nevermind crashing the car, but the events that are out of your control: trailer and garage fires, weather damage, theft, highway accidents, and so on.Īnd that’s where racing insurance - a longstanding option in the insurance marketplace that’s gained traction in recent years but remains somewhat of a cottage industry - proves its worth. This can be not only a devastating blow to one’s racing, but to their family’s financial well-being, as well.ĭid you know that, even in your driveway or your shop, your racecar is not covered under your homeowner’s policy? How about your spare engines and parts? Do you know what’s covered and what isn’t under the insurance policy on your trailer when at the track or in transit? Indeed, there is equity in our race cars, our engines and parts, tools and trailers, and as we’ve seen time and again, it can all be gone in an instant. Racers and gearheads alike pour not only their hearts and souls but also a considerable portion of their financial worth into their operations, and it goes without saying that many, if not the vast majority, would be hard-pressed to recover in the event of a costly accident in any near-term timeframe, if at all. There’s an old saying that goes, “only race what you can afford to replace.”
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