Racing Motors: The Impact On Auto Insurance Rates

Racing a vehicle can lead to criminal charges, fines, the seizure and impoundment of your car, and the suspension of your driver’s license. On top of that, expect your auto insurance rates to increase if you get a ticket for racing. The average car insurance rate increase after a ticket for racing is 71%. State Auto had the highest rate increase at 115%, while State Farm had the lowest rate increase at 34%.

Racing violations and their consequences

Racing on public roads is illegal in many places and can have serious consequences. Racing is considered a criminal offence and can result in criminal charges, fines, and even the seizure and impoundment of your vehicle. Racing violations can also lead to the suspension or revocation of your driver's license.

Racing Violation Penalties by State

California

If convicted of racing on a highway in California, penalties include:

• 24 hours to 90 days in county jail
• A fine between $355 and $1,000, or jail time and a fine
• 40 hours of community service
• A 90-day to six-month driver's license suspension

If bodily injury to someone other than the driver occurs, consequences can include:

• 30 days to six months in county jail
• A $500 to $1,000 fine or both

Florida

In Florida, penalties increase with each conviction. The first racing charge is a first-degree misdemeanour, with potential penalties including:

• A $500 to $1,000 fine
• Loss of driver's license for one year

A second violation within five years is also a first-degree misdemeanour, with potential penalties including:

• A $1,000 to $3,000 fine
• A two-year driver's license suspension

Illinois

Penalties for street racing in Illinois include:

• A Class A misdemeanour charge for the first offence
• A minimum $250 fine for the first offence
• A Class 4 felony charge for the second offence
• A minimum $500 fine for the second offence
• A potential driver's license suspension for the second offence

New York

Racing that is not explicitly approved within the state of New York is considered illegal and may result in:

• A misdemeanour
• Imprisonment of up to 30 days
• A $300 to $525 fine, or both

A second violation within 12 months can lead to:

• Imprisonment of up to six months
• A $525 to $750 fine, or both

Pennsylvania

In Pennsylvania, those caught street racing or drag racing can be fined up to $200. If the incident takes place on a highway, charges can be upgraded to reckless driving or careless driving, resulting in:

• A six-month driver's license suspension
• A $200 to $1,000 fine, or both

Texas

Street racing is illegal in Texas, and penalties vary. For a first offence, one may face:

• A Class B misdemeanour
• Up to 180 days in jail
• Up to $2,000 in fines

Subsequent violations can lead to:

• A Class A misdemeanour charge
• Up to one year in jail
• Up to $4,000 in fines

If convicted of street racing twice or more, one can face:

• A State Jail Felony
• Up to two years in jail
• Up to $10,000 in fines

Any street racing violation that results in bodily injury can lead to:

• Two to ten years in prison
• Up to $10,000 in fines

Other Consequences of Racing Violations

In addition to legal penalties, there are other consequences to consider. A standard auto insurance policy will not cover liability or damage while racing, and street racing is expressly prohibited in most auto policies. As a result, racing may void your insurance coverage and leave you financially responsible for any damage or injuries that occur. Furthermore, racing may also void the manufacturer's warranty on your vehicle.

The impact of racing on insurance premiums

Racing on the road or track can have a significant impact on insurance premiums. Standard car insurance policies do not cover racing, and engaging in racing activities can result in higher premiums or even policy cancellation.

Standard Insurance Policies and Racing

Standard auto insurance policies typically exclude coverage for racing or speed contests, including street racing and organised events at racetracks. Any damage or liability incurred while racing will not be covered by a standard policy. This means that if you engage in racing, even as a hobby, your vehicle becomes uninsured as soon as you start racing.

Consequences of Racing on Insurance Premiums

Racing can have several negative consequences that can affect your insurance premiums:

• Increased Premiums: If you receive a ticket for racing, your insurance rates are likely to increase, similar to a ticket for speeding or illegally passing a school bus. The average car insurance rate increase after a racing ticket is 71%, with some companies imposing hikes of over 100%.
• Policy Cancellation: Engaging in racing activities may result in your insurance company cancelling your policy. This is because racing is considered a high-risk activity, and insurers may view you as a liability.
• Legal Consequences: Depending on the state, racing on public roads can lead to criminal charges, fines, imprisonment, driver's license suspension or revocation, and vehicle impoundment. These consequences can further impact your insurance premiums or make it difficult to obtain coverage.
• Safety and Warranty Concerns: Racing puts you, your vehicle, and others at risk. Any personal injury protection or medical payments coverage you have may not apply on the track, and you would need to rely on your health insurance. Additionally, racing may void your manufacturer's warranty if your car is new.

Specialty Racing Insurance

Specialty insurance companies offer policies for amateur drivers participating in sanctioned racing events. These policies are typically "agreed value," where the insurance company and the driver agree on the vehicle's value upfront, and the premium is based on that amount. However, these policies tend to be expensive and usually only cover damage to the car, not injuries to the driver or others.

Factors Affecting Insurance Premiums

It is important to note that insurance premiums are influenced by various factors beyond racing, including age, driving experience, location, vehicle type, credit history, and driving record. Insurance companies use these factors to assess the risk of insuring a driver and set their premiums accordingly.

Racing and standard insurance policies

Standard car insurance policies do not cover racing activities, including drag racing, autocross, rallies, and track days. Racing is often explicitly excluded in the fine print of insurance policies, and engaging in racing activities can void your coverage.

Racing is considered a high-risk activity by insurance companies, and as such, it can significantly impact your insurance rates and coverage options. If you are caught racing, you may face criminal charges, fines, the seizure and impoundment of your car, and the suspension of your driver's license. In addition, your insurance rates are likely to increase, similar to receiving a ticket for speeding or other traffic violations. The increase in insurance rates will vary depending on your location and insurance provider.

If you plan to engage in racing activities, it is essential to obtain specialized race car insurance. This type of insurance is typically offered by specialty insurance companies and is designed specifically for amateur or professional drivers participating in sanctioned racing events. Race car insurance policies are usually "agreed value" policies, where the insurance company and the policyholder agree on the value of the car upfront, and the premium is based on that amount. However, keep in mind that race car insurance typically only covers damage to the car and not any injuries sustained by the driver or others.

Racing and specialised insurance policies

Standard car insurance policies do not cover racing-related damages or liability. This includes damage to the vehicle, injuries sustained by the driver or passengers, and damage to third-party property. Therefore, if you plan on racing your car, it is essential to purchase a separate racing insurance policy.

Track Day Car Insurance

Track day car insurance is essential for anyone taking their car to the racetrack. This type of policy covers cars used for racing or other high-performance activities. It typically provides coverage for damage to the vehicle and third-party liability. It is more expensive than standard car insurance but offers peace of mind for those engaging in this dangerous sport.

Specialized Racing Insurance Policy

Specialized racing insurance policies are designed specifically for those who race their cars. They provide comprehensive coverage for damage to the vehicle and third-party liability. These policies are typically more expensive than standard car insurance or track day insurance. Some companies specializing in this type of insurance include K&K Insurance Group, Chizmark Larson, and Hagerty.

Off-Track Motorsports Insurance

Even when your race car is not on the track, it needs protection. Off-track motorsports insurance covers non-street-legal race cars and motorcycles when they are in transit, in storage, or at risk of fire, flood, or theft.

On-Track Motorsports Insurance

On-track motorsports insurance provides coverage for single-event track days or annual non-competition track usage. It includes towing, car rental, and pollutant clean-up services. Annual coverage for vehicles valued at $100,000 or more is available at a low deductible.

Considerations for Racers

Racers should be aware that their personal injury protection or medical payments coverage may not apply on the track, and they may need to rely on their health insurance. Racing may also void the manufacturer's warranty on new cars. Racers should also be prepared for premium insurance prices due to the high-risk nature of the activity.

Racing and insurance risk factors

Racing a vehicle can lead to criminal charges, fines, the seizure and impoundment of your car, and the suspension of your driver's license. It is also highly likely to result in an increase in your auto insurance rates. A standard car insurance policy will not cover liability or damage while racing. This includes drag racing, autocross, rallies, and track days. Street racing is also expressly prohibited in almost all auto policies and is considered a nasty moving violation in most states.

If you receive a ticket for racing, your auto insurance rates will likely increase, just as they would for a speeding ticket or illegally passing a school bus. The average car insurance rate increase after a ticket for racing is 71%. The specific increase will depend on the company and state. For example, State Auto had the highest rate increase of 115%, while State Farm had the lowest rate increase of 34%. Additionally, drivers in certain states, such as North Carolina, may face higher increases, with a 334% average rate increase.

The sanctioning body for the racing may carry liability insurance, but it will usually be basic coverage that protects those you injure rather than repairing your vehicle. Some specialty insurance companies offer policies for amateur drivers at sanctioned events, which are typically "agreed value" policies that cover only damage to the car, not any injuries or damage inflicted on others. These policies can be expensive, costing several thousand dollars per year for comprehensive coverage.

In addition to the financial consequences, racing voids your manufacturer's warranty if your car is new. It is also important to note that racing increases the risk of personal injury, and any personal injury protection or medical payments coverage you have may not apply on the track. Therefore, you would need to rely on your health insurance coverage, if you have it.

When determining insurance rates, insurance companies use multiple pricing factors to assess your risk, or the likelihood that you will file a claim. A history of moving traffic violations and at-fault accidents is one of the biggest factors in determining your rates. Credit-based insurance scores, age, driving experience, location, and the type of car you drive are also significant factors.

Frequently asked questions