Americans have long had a love affair with cars, particularly fast ones. Many car enthusiasts collect muscle cars and compare horsepower, torque, and other performance metrics with each other. Not only do Americans love performance vehicles, they like to go fast. There are Facebook pages for owners of certain vehicles where owners discuss speed and passing others. Hollywood has long realized this, and from the Cannonball Run movie in 1981 to The Fast and the Furious franchise, which is on its ninth movie with Fast and Furious Presents: Hobbs & Shaw, and another two movies planned for 2020 and 2021, we can’t get enough of fast cars.
However speeding in a vehicle is dangerous, and studies have shown that the faster a vehicle is going the greater the chances there will be serious injuries or fatalities in event of an accident. Therefore, insurance companies do not provide coverage for racing activity. As always, the devil is in the details, and a recent question from a subscriber highlights that issue. Our subscriber drove a high performance vehicle through Xtreme Xperience, which allows people to take a brief class and then head out onto the track in vehicles such as a Porsche 911 GT3, a Lamborghini Huracan LP610-4, a Ferrari 458 Italia or other exotic vehicle. Being in the insurance industry, he asked his carrier that if anything had happened in the vehicle, would his umbrella policy have provided coverage. His carrier’s answer was no, that it fell under their policy’s racing, speed, demolition or stunting exclusion which reads in part that “damage caused while using any “automobile” while practicing for or participating in any prearranged or organized racing, speed, demolition or stunting content or activity.” The carrier also referred to the Xtreme Xperience website that clearly states that an individual’s personal insurance will not provide coverage and that it is necessary to buy one of their insurance packages for potential damage to the vehicle.
Already have an account? Sign In Now
For enterprise-wide or corporate access, please contact our Sales Department at 1-800-543-0874 or email [email protected].
Copyright © 2024 ALM Global, LLC. All Rights Reserved.