I took my Evo to a performance shop for a dyno tune. On the third pull, a connecting rod let go, sawing the block in half and starting a small oil fire. The shop said, “Not our liability, you signed a waiver.” I called my insurance to claim “Comprehensive/Fire.” They denied it, citing the “Preparation for Racing” exclusion.
Key Takeaways
- The Dyno is a Grey Area: Insurers view a dynometer as a tool to test maximum speed and power, often linking it to racing preparation.
- “Testing” Exclusion: Many policies exclude loss occurring while the vehicle is being “tested, prepared, or practiced” for a contest.
- Shop Liability: You almost certainly signed a waiver at the shop releasing them from damage during tuning. This waiver holds up in court.
- Mechanical Breakdown: Even if not “racing,” an engine blowing up is “Mechanical Breakdown,” which is excluded. Only the fire damage might be covered, but the “Racing Prep” clause overrides everything.
The “Why” (The Trap): Contest of Speed Preparation
The exclusion reads: “We do not cover loss arising out of the ownership, maintenance, or use of a vehicle while used in… or in preparation for any prearranged or organized racing, speed, or demolition contest.”
The insurer argues: “Why were you on a dyno? To make the car faster. Why? To race.”
Even if you argue it was just for street drivability, the high-rpm nature of the failure suggests “abuse.”
[IMAGE: Photo of a car on a dyno with a blown engine and oil spill]
The Investigation: I Called Them
I asked insurers: “If my car is damaged while being tuned on a dynometer, is it covered?”
1. Standard Auto (Allstate)
- Answer: “No.”
- Reason: “Testing” and “Mechanical Breakdown.”
- Verdict: You are on your own.
2. Shop’s Garagekeepers Insurance
- Answer: “Usually excluded.”
- Reason: Garagekeepers policies covers negligence (e.g., they didn’t strap it down and it flew off). It does not cover the engine blowing up because it couldn’t handle the boost.
3. Hagerty
- Answer: “Case by case.”
- Nuance: If the dyno session was for maintenance/tuning and resulted in a fire, the fire damage might be covered. The engine block itself (mechanical failure) is never covered.
Comparison Table
| Event on Dyno | Mechanical Breakdown Coverage | Fire Coverage |
| Engine Explodes | Denied (Maintenance) | Denied (Racing Prep) |
| Car Flies off Rollers | Denied (Shop negligence) | Covered (Collision) |
| Fire starts after explosion | Denied | Debatable (Fight required) |
Step-by-Step Action Plan
- Read the Shop Waiver: Before the car goes on the rollers, read what you are signing. If they blow your motor, you have zero recourse.
- Define “Maintenance”: If you must file a claim (e.g., for fire), describe the event as “Diagnostic Maintenance,” not “Performance Tuning.” Words matter.
- Expect a Fight: If the car was strapped to a dyno, the presumption is abuse. You will likely be denied.
- Self-Insure the Risk: If you are tuning a car to the edge, accept that if it blows, you pay. If you can’t afford the replacement engine, don’t turn up the boost.
FAQ Section
Is street tuning covered?
If you blow the engine on the street? No (Mechanical Breakdown). If you crash while street tuning? Yes, usually covered as Collision, unless they prove reckless driving/racing.
Does “HPDE” insurance cover dyno time?
No. Track insurance covers the specific track facility on the specific days listed. It does not cover the dyno shop.
What if the shop tuner made a typo in the software?
That is “Professional Liability” (Malpractice) for the shop. You would have to sue the shop for negligence. Your auto insurance won’t pay.