Believe it or not, I get this question: “I entered a demolition derby at the county fair. Can I insure the car?” The answer is a hard, laughing NO. But the reason why highlights a fundamental rule of insurance.
Key Takeaways
- Intentional Damage: Insurance covers fortuitous (accidental) events. A demolition derby is an event where the goal is damage.
- No Underwriting Model: There is no risk calculation. The probability of loss is 100%.
- Liability is the only concern: The only insurance involved here is the event organizer’s liability policy in case a wheel flies into the stands.
- You are on your own: You lose the car, the entry fee, and the medical bills (unless you have specific accident insurance).
The “Why” (The Trap): Certainty of Loss
Insurance exists to protect against possibility. Demolition derbies deal in certainty.
Standard track policies exclude “Contests of Speed.” Demolition derbies are “Contests of Destruction.”
The Clause:
“We do not cover loss caused intentionally by or at the direction of the insured.”
Ramming another car is an intentional act.
The Investigation: Is there any coverage?
I called a specialty broker who handles “Wacky Racing” events (LeMons, ChampCar).
- Broker: “For LeMons (Endurance racing cheap cars), we can insure the liability and maybe the car value if it’s a ‘real’ race. For a Demo Derby? No. Absolutely not. That is uninsurable.”
Comparison Table: Racing vs. Destruction
| Event | Goal | Insurance Status |
| HPDE | Education/Speed | Available |
| Wheel-to-Wheel Race | Competition/Speed | Available (Expensive) |
| Demolition Derby | Destruction | Uninsurable |
[IMAGE: Photo of a smashed demolition derby car with “NO INSURANCE” spray-painted on the door]
Step-by-Step Action Plan
- Don’t Ask: Calling your agent to ask this question will just make them flag your file as “reckless.”
- Health Insurance: This is your only safety net. Verify your health insurance doesn’t exclude “organized contests.”
- Cage Safety: Since the car is uninsurable, invest your money in the roll cage and welding. Your life is the asset here, not the car.
FAQ
What about “Spectator Drags”?
Some oval tracks have “Spectator Drags” where street cars race one lap. This is racing. It is excluded by street policies. You might get track insurance for it if it’s not “contact” based, but it’s risky.