USAA just dropped my SC....

Rick Lee · Rick Lee's Garage

Here comes my favorite saying again - "What a fool I used to be!" Last week I called USAA to ask about DE coverage. I know it's a tricky issue, but since I already had DE insurance through Laurel, I figured USAA wouldn't get bent out of shape by my asking. DE insurance ain't cheap! Anyway, just got the call from an underwriter who said my policy (For my SC only. House and other cars are ok.) would not be renewed when it expires in March. They didn't care that I have track insur. through Laurel DE. They said even taking my car on the track violates my street policy with them. I said I knew of a fellow who trashed his Boxster on the track and USAA covered it. But they said it must have been through their general agency insur. and not their normal family something or other. In USAA's defense, they tried to give me other options and it turns out Progressive will take me. Another option may be American Collector's, but no dice since they can't insure in VA at the moment. State Farm's quote made my track insurance look cheap - just insulting.

Since I'm still ok with USAA until March, maybe American Collector's will be approved for VA by then. But I need to start looking at other options like yesterday. As I've long suspected, honesty ain't always the best policy. For those of you who think USAA will cover you in a DE wreck, you are playing with fire.

Rot 911 · 10-04-2005, 05:28 AM

Wow, thanks for the heads up. Guess if I have a mishap on the track I better tow my car out into the street!

Rick Lee · Rick Lee's Garage

Kurt, I talked about that too with a USAA adjuster a few mos. ago when I creamed a bambi with my SC. Lucky for me, there was still bambi fur stuck in my smashed H4 and blood splatter on my windshield, so he believed me. Take one look at my car and it's pretty obvious that it's a track car. Adjuster said any accidents that happen anywhere near a track are looked into very closely.

m325ix · 10-04-2005, 05:48 AM

American Collectors don't cover track days or any other type of 'racing' or DE. Just got off the phone with them

GaryR · GaryR's Garage

Quote:

Originally posted by m325ix
American Collectors don't cover track days or any other type of 'racing' or DE. Just got off the phone with them

I'm sitting here LOOKING at a "Driver's Education Limited Physical Damage Policy" for my SC and my trailer from American Collector's Insurance, Inc. The actual carrier for me is American Bankers Insurance Company of Florida. The don't cover some states, but they sure do carry DE insurance!

Rick Lee · Rick Lee's Garage

I talked with American Collector's for a while last week and they said they do cover DE's and have a guy there who's in charge of the DE program. It's just that they can't write in VA yet.

hkspwrsche · 10-04-2005, 06:07 AM

Policies differ from state to state. The Va policy was written by the state of Va. Not your insurance company. There is more than one policy and you company has to chose which policy to use from a couple of options. It's clear the way the state intended racing to be excluded from all the ones Ive seen. The one policy that the state wants all the companies to convert to is the "ISO" policy. It excludes any vehicle any vehicle..competing in practicing or preparing for any arranged racing or speed contest.. there is more to it but, they do not intend to cover even an auto cross situation... keep that in mind.

hkspwrsche · 10-04-2005, 06:09 AM

one more thing.. your company if it so wishes can offer an endorsement that would cover it. the endorsement would need to be approved and the amount agreed on with the ins. commision.

Rick Lee · Rick Lee's Garage

As for autocrosses, I would think there's no way they'd be covered since they are timed events.

Drdogface · Drdogface's Garage

Rick,
Thanks for the heads up on this. Everything I own is insured by USAA. I have been planning on doing some DE's and calling USAA to ask about it. Now I'll just pass and enjoy it on the street until/unless I can find a way around it.

hkspwrsche · 10-04-2005, 06:22 AM

Most companies consider DE's practicing or preparing for.. it also excludes any event on a track!... some companies may start to offer coverage.. again they'd have to add that endorsement to the policy..and most likely charge for it!

Richard C2S · 10-04-2005, 06:36 AM

New Rule: If you participate in high performance driving events, be prepared to self-insure. Don't risk anything you cannot afford to lose , fix or replace.

Rick Lee · Rick Lee's Garage

Or go to www.laurelde.com. I just paid $600 and change for $25k coverage, $5k deductible and 20 DE days. A little over $30 a day for catastrohic loss coverage.

Jim Richards · 10-04-2005, 07:10 AM

Quote:

Originally posted by Richard C2S
New Rule: If you participate in high performance driving events, be prepared to self-insure. Don't risk anything you cannot afford to lose , fix or replace.

That statement is a bit too harsh, I think. DE insurance is available and it has been used by people I know, right Rick Lee?

Just expect to have to carry a substantial deductable as that's all that's offered. However, without track insurance, expect to be totally self-insured.

RL's problem is that he [foolishly

] told USAA that he has tracked his SC, and although he has track insurance through Laurel DE, USAA had a fit that his car has been on the track and decided that they won't renew his street insurance policy. That blows.

ben parrish · 10-04-2005, 07:32 AM

I don't know what is so hard to understand about this. Insurance companies are NOT going to cover a car for track use UNLESS it is a specific policy for the track. To further complicate matters, many insurers will drop you if they know that you will track the car REGARDLESS of your track insurance. The risk perceived for someone who participates in any type of "racing" is too great for them to bear. Many people are playing a dangerous game of chancing it . Adjusters WILL investigate the cause and location of the accident as well as looking for witnesses of the accident and will even go as far as talking to co-workers and neighbors about how you use the car. If they can find an out, they will use it. It just doesn't pay to try and be sneaky on this issue.
Rick Lee did the right thing and now he has to make adjustments in his insurance; better to find out now than later. Many of you with "classic" policies are going to get bit when it comes time to make a claim but you will be the first to cry fowl. Be honest with your insurer and NEVER take the word of the agent; you need a clear, written statement from the company's underwriter on their limitations. I used to be in the insurance industry and I am just trying to help .
Ben

zotman72 · 10-04-2005, 07:33 AM

USAA is getting pretty restrictive about track events. For heavens sakes to not say/offer anything of DEs and sure as heck do not try to make a claim if you have a track mishap. That is just plain wrong. That will make things even worse for the rest of us members. YMMV

KobaltBlau · 10-04-2005, 07:48 AM

Quote:

Originally posted by ben parrish
Adjusters WILL investigate the cause and location of the accident as well as looking for witnesses of the accident and will even go as far as talking to co-workers and neighbors about how you use the car. If they can find an out, they will use it. It just doesn't pay to try and be sneaky on this issue.

Right, which is why you don't tell your street insurer if you have a track mishap, or try to get any money out of them. All of this is why I don't track an expensive car.

Dixie · Dixie's Garage

Quote:

If they can find an out, they will use it. It just doesn't pay to try and be sneaky on this issue.

So true. At the point you become sneaky, you no longer risk the car. You risk prison time and fines for fraud. As well as loosing the car.

..Don't track what you can't afford to loose.

randywebb · 04:36 PM

Insurance companies are often referred to as "Satan & Satan, Inc." by at least some judges. Now you know why - partially. It gets a lot worse...

makotosun · makotosun's Garage

I recently had a small "incident" requiring body shop and alignment work on an informal saturday group drive. Out of pocket will be in the range of $1,000.00. All damage caused by a spinout.

Did not report to my insurance, even though it was not on a track, was on public roads, and I had a great eyewitness who did not feel the corner was taken too fast.

Given that it was an "organized" event, I decided that the best course was to bite the bullet. Even a claim on this type of event is likely to cause non-renewal and/or heavy rate increases. You can either pay them now or later.

My decision might have been different had I had a lot more damage, or there were other cars involved.