You are standing next to your smoking 2024 BMW M3 at Turn 4, staring at a crushed radiator and a bent frame while the track marshals wave yellow flags. You call your standard auto insurance agent, shaking, only to hear the AI-assisted adjuster say, “Our telematics data places you at a racing facility—claim denied.” Now you are personally on the hook for $45,000 in repairs plus the $4,200 bill for the track barrier you destroyed.
Key Takeaways
- Standard auto insurance is useless here: 99% of personal auto policies (Geico, State Farm, etc.) strictly exclude coverage the second your wheels touch a racing surface, even for “educational” events.
- The “Timed Event” loophole is dead: In 2026, insurers use GPS and “Facility Exclusions,” meaning it doesn’t matter if you were racing or just learning; if you’re on a track, you’re uncovered.
- Liability is the gap: Most track day insurance covers your car. It rarely covers damage you do to other cars. You hit a Porsche? You pay for the Porsche.
- The “Clean Up” costs are real: You need a policy that explicitly covers track damage fees, towing, and fluid cleanup, which can run thousands of dollars.
The Trap: The “Facility Exclusion” Clause
Ten years ago, you could argue with an adjuster that you were participating in “High-Performance Driver Education” (HPDE) and not a “race.” That argument doesn’t work anymore.
I pulled the exclusions list from a standard 2026 policy jacket last week. It no longer just says “we do not cover racing.” It now reads:
“We do not cover loss or damage occurring at a facility designed for the purpose of racing or high-speed driving, regardless of whether the vehicle is being used for a contest.”
[IMAGE: Screenshot of a standard policy Declarations page highlighting the “Facility Exclusion” text in bold red.]
Furthermore, with the rise of telematics, your daily driver is snitching on you. If your policy includes a “safe driving” app or dongle, or if your modern car transmits data directly to the manufacturer (who sells it to the insurer), they have a GPS timestamp proving you were at Laguna Seca or Road Atlanta.
If you rely on your daily insurance, you are effectively self-insuring.
The Investigation: I Quoted the Top 3 Carriers
To see who actually pays out when things go sideways, I ran a stress test. I acted as the owner of a 2024 Toyota Supra (Declared Value: $60,000) looking for a single-day policy for an HPDE event at a major raceway.
Here is what I found after digging through the fine print and speaking to their underwriters.
1. Hagerty (The Heavyweight)
Hagerty is the 800-pound gorilla. I use them for my classic cars, so I tried their track day product.
- The Process: It took me roughly 90 seconds on their app. Very slick 2026 tech.
- The Coverage: They offer “Agreed Value.” If I total the Supra, I get the full $60k, no arguing about depreciation.
- The Catch: They are strict about “timed” events. If the event has a stopwatch involved, they might balk. Also, their premiums were about 15% higher than the competition in my quote.
- My Verdict: Best for convenience and trust, but you pay a premium for the brand name.
2. Lockton Motorsports (The HPDE Specialist)
I called Lockton and actually got a human on the phone who knew what an “apex” was. That’s rare.
- The Process: A bit more old-school web interface, but functional.
- The Coverage: They shine in the “extras.” They cover the damage to the track (barriers, oil cleanup) automatically. This is huge because many tracks now charge $500 per foot of Armco barrier damaged.
- The Catch: High deductibles. On my $60,000 quote, the deductible was 10%—$6,000. You have to be prepared to absorb that first chunk of the cost.
- My Verdict: The safest bet for serious HPDE participants who are terrified of track damage fees.
3. OpenTrack (The “All-You-Can-Eat” Option)
OpenTrack is different. They pushed me toward an annual policy.
- The Process: Geared toward the guy going to the track once a month.
- The Coverage: If you do 3+ events a year, this is mathematically the winner. They also cover the car while it’s in the trailer and paddock (not just on the track).
- The Catch: It’s a big upfront cost. For a single day, it’s not worth it.
- My Verdict: If you are a “track rat” going 5+ times a year, buy the annual pass. If you are a one-timer, skip it.
Comparison Table: Protecting a $60,000 Car
I compared a single-day event quote for the 2024 Supra.
| Feature | Hagerty | Lockton Motorsports | OpenTrack |
| Est. Cost (1 Day) | $380 – $450 | $310 – $360 | N/A (Annual Focus) |
| Deductible | 10% of Value ($6k) | 10% – 15% Options | 5% Options Available |
| Track Liability | Optional Add-on | Included (up to $5k) | Included |
| Towing/Cleanup | Included | Included | Included |
| Time Trial Coverage | No | Limited | Yes (Check specific policy) |
[IMAGE: Graph showing the cost break-even point between single-day policies vs. an annual OpenTrack policy.]
Step-by-Step Action Plan
If you are heading to the track this weekend, do this now. Do not wait until you are at the gate; cell service at tracks is notoriously terrible.
- Establish “Agreed Value”: Do not guess. Look at current market listings for your exact year and trim. If you under-insure, you will come up short on a total loss. If you over-insure, the carrier may flag the policy for fraud review.
- Get the VIN: You cannot buy these policies without the VIN. Have it ready.
- Buy the Policy 24 Hours Prior: I’ve seen systems glitch the morning of the event. Buy it the day before.
- Read the “Time Trial” Clause: If your event has transponders for lap times, call the insurer. Ask specifically: “Does the presence of a transponder void my coverage?”
- Photograph the Car: Before you roll onto the track, take 4 photos of the car (all sides) with your phone. This proves pre-existing condition if a claim arises.
FAQ
Does track insurance cover mechanical failure?
No. If you blow your engine because you redlined it for 20 minutes, that is on you. These policies cover physical damage resulting from an accident (hitting a wall, rolling over, hitting another car).
What happens if I hit another driver?
This is the scariest part of track days. Generally, track insurance covers your car. It does not provide liability coverage for the other guy’s Ferrari. The waiver you sign at the track usually prevents them from suing you, but in 2026, we are seeing more lawsuits piercing those waivers. Drive carefully.
Does my umbrella policy cover me?
Almost certainly not. Umbrella policies usually sit on top of your underlying auto policy. If the underlying auto policy excludes the event (which it does), the umbrella has nothing to stand on and will also deny the claim.
Can I buy coverage for a borrowed car?
Yes, but it is tricky. You usually need the owner’s permission and the policy must often be in the owner’s name, or you must be listed as a named driver. Do not assume you can insure a car you don’t own without declaring that fact.