Drag Racing & Insurance: Does My Car Insurance Cover Me at the Racetrack?

Have you always dreamed of being a professional drag racer? Do you think you have what it takes to become a champion? Well, it may be time to get behind the wheel, strap on your seatbelt and make your way to the metaphorical finish line.

But, before becoming the next big thing in organized drag racing, there are several important tasks that you need to take care of — one of the most vital tasks is researching race car insurance rules and restrictions in Canada.

In a sport full of intense chases and high-speed collisions, it's only natural for you to want the best coverage available. However, there are more nuances to this type of auto insurance than the average driver anticipates.

If you'd like to learn more about the ins and outs of drag racing insurance in Canada, be sure to continue reading.

What is racing insurance?

Drag racing coverage is a type of auto insurance that specifically covers drivers during an organized racing competition.

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You can purchase drag racing coverage as an event organizer or driver (be aware that these examples generally require distinct types of drag racing coverage).

What counts as "organized racing"?

Although we're all familiar with the term "race", drivers should be aware of the acts that insurance providers deem as an "organized race".

The following acts are typical examples of "racing":

• Driving in a timed event
• Driving in a competitive event
• Driving in an event that takes place in a competition-oriented location (i.e. race track)

Where can drivers purchase auto racing insurance in Canada?

There are two primary ways that drivers can purchase drag racing coverage: through race tracks and specialty auto insurance providers.

Race tracks

Drivers can purchase drag racing coverage at most race tracks in Canada. Race tracks often refer to drag racing coverage as track day insurance.

Most race tracks offer coverage for:

• Individuals
• Small groups
• Teams
• Organized events

Specialty auto insurance providers

Some specialty auto insurance providers offer various types of car insurance for race track usage. If you'd prefer to work with an insurance provider, we highly suggest that you look for one that specializes in motorsport-related auto coverage. These providers will be able to offer professional opinions and share their experiences with you.

However, before getting excited, you should always verify that a prospective provider offers the level of coverage that you're looking for. Under-insuring your vehicle is almost as risky as not insuring it at all.

Additionally, if you're having difficulty finding specialty auto insurance, it may be time to look for quotes online. Spending ten minutes online can supply you with dozens of competitive, high-quality quotes.

Usage

In some cases, specialty auto insurance providers require drivers to race their vehicle on a track at least once a year (this depends on the type and level of coverage that you have). If you don't plan on using your vehicle this often, you may want to look for a provider that offers single-day track coverage.

How much does drag racing insurance cost in Canada?

Unfortunately, there's no set-in-stone answer to this question. Like other types of auto insurance, the price of your drag racing coverage is based on numerous factors.

Some examples include:

• Location
• Driving history
• Value of the vehicle

However, we can say that it's not uncommon for professional drag racers to pay upwards of $5,000 a year for coverage. Although this may seem like a colossal total (especially in comparison to the price of a standard auto insurance policy), it's a relatively small price to pay for peace of mind and financial protection.

Does my basic car insurance cover drag racing in Canada?

We receive this question all of the time — so, we feel like this is the right moment to address it.

In short, no, your basic auto insurance policy will not cover damage or injuries resulting from an organized drag race. 

If you participate in a drag race without the proper auto insurance coverage, you're putting your safety and finances in jeopardy. This is because drag racing voids your auto insurance coverage (this is generally stated in the fine print of your policy).

So, what exactly does this mean? Simply put, if you damage your vehicle or injure yourself (or another driver), you will not receive financial coverage from your auto insurance provider. In turn, you're responsible for covering any expenses that result from the damage you cause.

To make things worse, you won't receive coverage even if you weren't responsible for the incident.

With all of this in mind, you can see why you should always make sure that you're sufficiently covered before hitting the race track.

If you have questions about other events that may void your policy, don't hesitate to contact your insurance provider. Your insurance provider can clearly outline what acts and events will void your policy. Knowing this information can help you make informed decisions in the future (and potentially help you save a few bucks, too).

What are the risks of drag racing?

As fun and exhilarating as drag racing can be, drivers need to be aware of the potential risks that are associated with the sport.

Some of the most common (and dangerous) risks of drag racing include the following:

• Broken bones
• Nerve damage
• Amputation
• Post-traumatic stress disorder (PTSD)

Although no drivers have died during an organized drag race, there was an incident in 2021 children (who were attending a race) were injured or killed after a driver lost control of his vehicle.

Without the proper insurance, you, as the driver, would be responsible for paying for expenses related to these events. Thankfully, if you do have the appropriate auto insurance coverage, you can sleep well knowing that you'll be financially protected if something goes wrong during a drag race.

Make sure that you're covered before revving your engine

There's no denying that drag racing is an exciting hobby for people who love to spend time behind the wheel. But, drag racing without the proper financial coverage is simply foolish; before you hit the track, make sure that you're satisfied with your level of coverage.