HPDE insurance is specialized coverage that protects against damages and liabilities during high-performance driving events, filling the gap left by standard auto insurance policies which typically exclude track-related activities.
What is HPDE insurance? HPDE insurance, or High-Performance Driver Education insurance, covers damages that occur to your car during track day events. Unlike standard auto insurance, which often excludes track-related activities, HPDE insurance ensures your vehicle is protected when you take it out on the racetrack.
HPDE insurance covers financial risks and liabilities during high-performance driving events, including damage to the car and often modifications, which standard auto policies do not cover.
Standard auto insurance policies typically exclude coverage for HPDE events, making it necessary for participants to purchase specific HPDE insurance to ensure adequate protection and compliance with event requirements.
HPDE insurance includes various coverage types such as physical damage to the vehicle, liability for injuries or damages to others, and specific coverage for time trials, providing comprehensive protection for track day enthusiasts.
Also referred to as track car or track day insurance, HPDE insurance caters to financial risks and liabilities that may arise during high-performance driving events. It covers damage to your car during these events, something that standard auto insurance policies typically do not cover. These policies are comprehensive, protecting your car from the moment you enter the track grounds until you leave.
Participation in motorsports events involves a substantial investment in the vehicle, often including performance-enhancing modifications. HPDE insurance recognizes this and often includes coverage for car modifications, unlike standard auto insurance.
Whether your vehicle boasts an enhanced engine for maximum speed or a custom paint job, an HPDE insurance policy offers suitable coverage. It provides you the confidence to push your limits on the track, knowing that your investment is well protected.
You can read more of our blogs about Track Day Insurance for more information.
DID YOU KNOW? HPDE insurance policies often cover two drivers per event and automatically include the instructor, providing comprehensive protection for both participants and their mentors during high-performance driving education sessions.
An important factor to understand is that most standard auto insurance policies do not cover HPDE events. These policies often have specific exclusions for:
‘track’
‘high performance’
‘HPDE-type’
‘racing or speed contest events’
This implies that the standard auto insurance policy might not cover the damage if your car gets damaged during an HPDE event.
This exclusion extends to any damage sustained while on a ‘racing surface,’ leaving a significant gap in coverage for motorsports enthusiasts. Moreover, many motorsports events require participants to have insurance coverage specifically for HPDE, making it not just a wise choice, but often a mandatory one.
As such, it is necessary to purchase a specific HPDE insurance policy to guarantee adequate coverage if you plan to participate in HPDE or other track events. It protects you from the financial impact of potential damage, making it a crucial component of your track day preparation.
HPDE insurance provides comprehensive protection through its array of coverage types. These include physical damage to your car, liability for injuries or damages to others, and coverage for time trials.
Let’s delve deeper into each of these coverage types.
Most HPDE insurance policies primarily focus on Physical Damage Coverage. It protects against damages to your car during an event, including those sustained during participation in HPDE, track day, or time trial events.
If you crash your car at a track day or an HPDE event, this type of coverage will protect it. This coverage is specifically tailored for high-performance driving events. Providers like RLI offer single-event policies that deliver this protection.
In essence, physical damage coverage shields your vehicle from the unexpected. It ensures that you can enjoy the exhilaration of high-speed driving without the worry of potential financial impact.
Liability Insurance Coverage under HPDE insurance protects against bodily injury and property damage inflicted on others. It provides financial protection if you harm someone else during an event.
This coverage protects you financially against claims if you injure someone or damage their property during an event. Track insurance can even cover damage to the track property itself.
While liability coverage is not commonly included in most policies, when available, it offers an extra layer of protection, safeguarding you against potential claims and lawsuits.
Time Trial Coverage specifically safeguards during time trials and competitive events. These high-stakes scenarios often involve pushing your vehicle to its limits, increasing the risk of damage.
Time trials can be covered under HPDE insurance policies, but coverage must be specifically selected when purchasing. This ensures your car, even when racing against the clock, is covered just like street cars with proper insurance.
Time trial coverage is particularly crucial for competitive drivers, as it provides peace of mind during these intense events, allowing you to focus on your performance rather than potential damages.
HPDE insurance policies are thoughtfully designed to consider various aspects of high-performance driving events. For instance, these policies provide protection from the moment you enter the track grounds until you leave, covering all aspects of your participation. To accommodate the often collaborative nature of these events, HPDE insurance policies typically cover two drivers at each event without additional charges. Furthermore, your instructor is automatically included in your policy, ensuring comprehensive coverage.
One unique aspect of HPDE insurance is its ability to cover vehicle modifications. These policies often include coverage for enhancements like custom paint jobs and body kits, recognizing the personalization and investment often involved in preparing a vehicle for HPDE events.
Several factors should be considered when choosing the right HPDE insurance. Most vehicles with VIN numbers are eligible for HPDE coverage, but the specific offerings and terms can vary from one provider to another.
One key factor to consider is your risk tolerance. Determine if you can afford to walk away from a total loss without insurance, essentially taking on your own risk. You should also evaluate the reputation of the insurance company and read reviews from other HPDE participants to ensure reliability.
Policy features and ease of use are also essential. Look for auto insurers with a straightforward and easy-to-use online portal for obtaining quotes and managing policies. Consulting an insurance agent can be helpful in this process. Some providers, like OpenTrack & RLI, offer an Agreed Value policy, allowing you to set your car’s value, which will be reimbursed if the car is totaled.
The claim process should be hassle-free and smooth in the event of any unfortunate incidents. Companies like OpenTrack emphasize the importance of a smooth claims process and personally oversee every claim to ensure this.
One of the key features of a good HPDE insurance policy is the ability to quickly and easily file your claim online. OpenTrack, for instance, allows claims to be filed online, making the process quick and paperless.
Throughout the claims process, prompt communication is crucial. Policyholders should be kept informed at every step to ensure transparency and efficiency.
Generally, HPDE insurance costs about 1% of your car’s declared value. However, this can vary depending on factors like bulk purchases, the track where the HPDE event is conducted, and the event’s organizer.
For instance, premiums for a $30,000 car typically range from $190 to $230 per event. For a $60,000 vehicle, premiums generally fall between $370 and $410 per event, while premiums for a $90,000 car usually range from $560 to $600 per event.
The deductible option selected by the policyholder influences the cost of HPDE insurance. Choosing a higher deductible can reduce your premium, but it also increases your out-of-pocket expenses if a claim is made.
Numerous providers offer HPDE insurance of high quality with a variety of coverage options. OpenTrack, for instance, offers physical damage protection up to $500,000 and optional liability protection up to $2 million. They even offer an annual membership providing limitless annual protection with flexible payment options.
OpenTrack’s Drive Better program offers professional-grade coaching resources and exclusive members-only events, curated by real professional driver coaches. The program aims to improve the safety, intelligence, and speed of HPDE track day enthusiasts through high performance driver’s education. It focuses on transforming participants into better drivers through comprehensive training.
Other providers like Hagerty and Lockton Motorsports also offer competitive HPDE insurance options. Hagerty, in partnership with RLI, offers a flexible portal with instant quotes, while Lockton Motorsports is known for offering track day insurance with competitive pricing.
Yes, there is a difference between HPDE insurance and track day insurance. HPDE (High-Performance Driver Education) insurance specifically covers damages and liabilities during HPDE events, which focus on educating drivers on high-performance driving techniques. Track day insurance, on the other hand, is a broader term that can cover various types of track events, not necessarily limited to educational purposes. Both types of insurance, however, provide coverage for damages incurred during track-related activities.
HPDE insurance differs from standard auto insurance in that it specifically covers damages and liabilities that occur during high-performance driving events on a racetrack. Standard auto insurance policies typically exclude coverage for track-related activities, meaning they will not cover any damages or incidents that happen during an HPDE event. HPDE insurance fills this gap by providing coverage tailored for the unique risks associated with high-performance driving.
You need HPDE insurance because standard auto insurance policies usually exclude coverage for track events, leaving you financially vulnerable if your car is damaged during an HPDE event. Additionally, many HPDE events require participants to have specific insurance coverage to participate. HPDE insurance ensures that you are protected against the financial impact of potential damages and liabilities, providing peace of mind and compliance with event requirements.
The cost of HPDE insurance generally amounts to about 1% of your car’s declared value per event. This can vary based on factors such as the vehicle's value, the track location, the event organizer, and whether bulk purchase discounts are available. For example, premiums for a $30,000 car typically range from $190 to $230 per event, while premiums for a $90,000 car usually range from $560 to $600 per event.
Choosing the right HPDE insurance involves several considerations:
Risk Tolerance: Assess whether you can afford to cover a total loss without insurance.
Reputation: Research the reputation of the insurance provider and read reviews from other HPDE participants.
Policy Features: Look for features such as an easy-to-use online portal for quotes and claims management, and consider the availability of agreed value policies where you set your car's value.
Coverage Options: Ensure the policy covers physical damage, liability, and specific needs like time trial coverage if required. Consulting with an insurance agent can also help in making an informed decision.
Understanding HPDE insurance is crucial for any motorsport enthusiast participating in track events. Unlike standard auto insurance, HPDE insurance provides the necessary coverage for damages and liabilities that may occur during high-performance driving events, ensuring that both your vehicle and financial investments are protected.
By considering your risk tolerance, researching providers, and selecting the right coverage options, you can enjoy the thrill of track days with peace of mind. For personalized advice and comprehensive coverage, contact an ALLCHOICE Insurance Advisor today.
Check out the Member Center or call us at 1-844-540-0463 to see if product is availbale and included in your policy.
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