I am gathering information prior to entering into NASA HPDE classes. One question that I didn't really see a definite answer to is: When you race in NASA/VIR events and you have a dedicated racecar (one that is not licensed to operate on the street) do you need vehicle insurance to race and cover accidents or does everyone sign a waiver aknowledging no fault/no financial liability for crashes? Thanks to all who reply.

 

The short version is no, you don't need to insure a dedicated racecar (if you can even find a company that WILL insure a racecar for on-track incidents specifically.) Meanwhile, street car insurance may cover HPDE incidents but you can't assume that it will. Long story short, don't track or race something you're not 100% prepared to write off and walk away from.

Fault and financial liability are an entirely different thing, with a much more complicated answer. The waiver is only one part of the issue. You should ask this question on http://www.nasaforums.com

Hope it helps,

Jon

 

Thank you sir!

 

as soon as a transponder goes on the car it is not insured. i.e. if it's timed it's not insured. Alot of insurance companies will cover HPDE's becuase they are considered driving schools.

 

Actually (and sadly), that is changing. The insurance companies are now going to the phrase "on a racing surface" (whether it's timed or not) so anything you do out there is not covered. Here's a very interesting article about the subject:

http://www.sportscarmarket.com/articles/archives/956

Like I said before... don't take it on track if you can't afford to ball it up. Stick to autocross instead.

Jon

 

I'm with you all the way... And that article is something everyone should read before you hit the track!!!

 

Thank you for posting the link to that article. It answered my question in great detail.

Edit: After thinking about this for a while I almost wonder if it is best to form a corporation or LLC to race under. After reading the above article and others like it, the possibility of a lawsuit seems pretty high and in the event of a suit, financial protection from insurance companies does not exist. I don't want to loose everything I have because of an accident on the track. Or am I being ridiculous?

 

I'm reading it the same way - forming a corporation to own your track car is sounding like a better and better idea the more I think about it. I'm not a lawyer though, so I don't know if it's a bulletproof solution.

 

Yeah. I think I am going to go ahead and form a corporation to race under and then insure it for that purpose. I really haven't been able to find personal, non-comercial insurance to cover race involvement, cars, equipment, etc. .