Auto insurance exists to protect you from financial ruin if you ever get involved in an accident. Some people who never get into accidents tend to feel like they’re not getting anything out of the high premiums they’re paying. If you’re one of those people, consider yourself lucky. On average, car accidents around the world lead to 1.3 million fatalities each year. And we’re just talking about the general data here. What more if you belong in an inherently high-risk environment? Take, for example, NASCAR racers.
What Is NASCAR?
The National Association for Stock Car Auto Racing, Inc. (NASCAR) is the top motorsports sanctioning company in the United States. You might wonder how auto insurance works in NASCAR, especially since crashes and wrecks are a common occurrence on the racing track.
On public roads, negligence is the most common cause of accidents. Oklahoma City law firm Hasbrook & Hasbrook describes it as failure to take safety precautions to avoid an otherwise preventable event. However, ‘negligence’ and ‘preventable’ are both difficult to qualify within the bounds of competitive racing. In fact, racer safety and security have been long-standing topics of controversy in this industry.
To hash out NASCAR insurance policies, here are three salient points you need to know:
- Racers Pay For Their Own Coverage
This might sound as a surprise considering how big NASCAR is, but it’s true. Unlike pit crews that are directly hired by the company, race car drivers are signed as independent contractors. Therefore, they are responsible for buying their own life and auto insurance policies like the average person.
One of the factors that determine auto insurance rates is a person’s driving history. Traditionally, high-risk drivers get higher premiums because they have greater chances of causing an accident. However, it’s the opposite for professional racers because they’re held at high athletic health standards. The more races they’ve competed in and finished successfully, the lower their premium gets.
- Stock Cars Need Specialized Insurance
Needless to say, NASCAR race cars are in a league of their own. They have custom-built engines, performance tires, specially-designed bodies, and high-end safety features. All these elements raise their value and make them too expensive to insure. Regular insurance companies refuse to cover race cars, so you have to find a specialized insurance carrier.
One example of specialized insurance policies is the ‘track day insurance,’ which covers a race car only on the day of the racing event. If you’re not a NASCAR driver but own a stock car that you want to take to the tracks for a day, this policy is also applicable for you. If you crash, this policy will cover the total costs of damages. Even if your car gets totaled, you will get reimbursed for the actual cash value of your car.
- Some Crashes Are Intentional
It’s common knowledge in the racing community that some drivers deliberately cause crashes as a strategy to win. Some of the most dangerous NASCAR drivers have crash frequencies of well over 50%. Now, bear in mind that a regular race car can go as fast as 200 miles per hour. Such numbers spell unimaginable danger on the track, which makes it all the more crucial to get liability and personal coverage.
High Speed, High Stakes
Auto racing is one of the most exciting yet most fatal sports in the world. Every thrilling turn on the track comes with a great amount of danger. Because of this, racers and their cars need more protection than the average insurance holder.
