Who Insures Race Car Drivers and Their Cars?



Most drivers buy car insurance to protect them in case they're in an accident and their car — or another person's car — is damaged, but what about race car drivers? The sport is built on speed: NASCAR drivers, for instance, race at speeds of up to 200 miles per hour. At speeds like that, accidents are bound to happen, and they do. In fact, some fans find the accidents the most exciting part of the race. So, who insures these drivers and their cars? If you know anything about racing — especially NASCAR — you know that the drivers have sponsors — lots of them. In fact, some drivers have cars that are actually sponsored by insurance companies. Does that mean the company insures the car, too? Sometimes, but not always. Team owners can't just call up their local State Farm rep and ask for a policy for a race car. Instead, racing teams typically must insure their cars with companies that specialize in motor sports. K&K Insurance Group, for example, has been providing motor sports insurance since 1952. Chizmark Larson also provides on-track coverage that insures race cars damaged while racing. The companies typically base the policies on agreed-upon values of the cars, and on the competition schedules — that is, the more races on the schedules, the more the policies are likely to cost. With the average cost of a NASCAR vehicle running in the neighborhood of $150,000, full-coverage insurance will run somewhere around $9,000 a year.