High Risk Car Insurance For Race Car Drivers?
Reader’s Question:
Do race car drivers fall under the high-risk category? What type of insurance coverage would suit them better?
Mildred
Edison, NJ
Race car drivers can be regarded as high risk drivers, considering they are always facing risky situations when they are about to do their job – which is racing. But come to think of it, race car drivers are professionals and are more disciplined in doing their job. Shouldn’t they be regarded as the safest drivers the world over instead?
For race car drivers, insurance companies tailor a specialized coverage a (high risk car insurance) that would best fit their job description. An insurer refers to it as Racing Car Insurance. As race car drivers or race car owners, they find their racing car as some sort of investment. To them, it means a lot, and highly valued because they put a lot of efforts and expenses on their car. Insuring their car would mean a lot to them. However, it is hard to find high risk insurance because very few specialized insurance companies can tailor the policy to such demands. Plus, many companies do not want to risk their business considering insuring a race car, as it would be a pretty expensive deal. It would demand a host of coverages that maybe only big companies could afford. Comprehensive and collision plans/policy are nowhere near that of an ordinary car insurance policy, and their policy limits go way over the roof – because racing is a big business. The insured parties do all they can to protect their investments, and insurance companies in turn do all they can to cover for all claims and losses.
Accidents happen frequently in the racing field and claims pile up. Insurance companies generally would offset this by setting higher premiums. Getting insurance for race drivers depends on who’s driving. If they rarely crash, then they might enjoy relatively lower rates. Always remember the rule that the greater the risk an insurance carrier has to take, the higher the rates that would reflect that risk.
Collision and Comprehensive Insurance in Louisiana For New Car
Reader’s Question:
I’m planning to buy a new car here in Louisiana. Will my collision and comprehensive insurance rates be affected by the model of my car?
Paula Anne
New Orleans, LA
Before you buy a car or before you buy auto insurance, try to get more information because insurance rates are definitely affected by the model of the car that you’re driving. Driving a high performance car or driving a sports car means you will to pay more for auto insurance. But this fact is not the general rule in determining insurance rates for your car. As a matter of fact, most auto insurance companies calculate your collision and comprehensive premiums by studying the car’s loss history, whether the model gets stolen very often, and the costs of its repair after an incident. Nowadays, insurers charge higher premiums to sports utility vehicles or SUVs due to recent tests that show that SUVs cause more damage in accidents than other passenger vehicles.
Auto insurance companies often utilize actuarial companies that give ratings of vehicles. Certain factors are used to determine the comprehensive and collision coverage costs in order to minimize the insurance company’s risks. Then, these actuarial companies assign a risk number to a car which is then used by the auto insurance company to calculate their policy rates. However, these risk numbers are not available to the public.
But if you want to know how much it will really cost you, you can contact an auto insurance company before you purchase a vehicle. That way, you can find out first how much you should pay for an auto insurance of a BMW or a Ford pick-up truck.
Just remember, it is better to look around for more information before jumping into conclusions or making decisions about buying a car or getting auto insurance.
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