You took a friend for a ride-along. You hit the tire wall. You are fine, but the airbag broke your friend’s wrist. You thought the waiver they signed at the gate protected you. Now their health insurance company is subrogating (suing) you to recover the $50,000 in medical bills, and your track insurance says, “We don’t cover guest passengers.”
Key Takeaways
- Waivers protect the Track, not You: The liability waiver usually indemnifies the track organizer, not necessarily the driver who caused the crash.
- Guest Passenger Liability is an Add-on: Many track policies exclude injury to passengers by default unless you pay extra.
- Subrogation is the real threat: Your friend might not sue you, but their health insurance provider absolutely will to recover their costs.
- The “Right Seat” Rule: Never let someone in the car unless you know exactly how their medical bills will be paid if you crash.
The “Why” (The Trap): The Intra-Family/Guest Exclusion
Standard auto policies have “Guest Passenger” coverage. Track policies often strip this out to save cost, assuming only solo drivers or instructors are in the car.
The Clause:
“We do not cover bodily injury to any person occupying the covered vehicle.”
If you see this on your policy, you are personally liable for your passenger’s medical bills.
The Investigation: Policy Wording Check
I reviewed the passenger liability clauses for 2026.
Lockton Motorsports
- The Rule: They offer “Auto Liability” which generally includes passengers, but you have to verify the limit. If you have a $50k limit and the bills are $150k, you are on the hook for the $100k difference.
Hagerty
- The Rule: Liability coverage is often a separate line item. I noticed in their quoting flow that you have to explicitly select liability coverage limits. If you choose “Physical Damage Only” (which many do to save money), your passenger is unprotected.
The Waiver Reality
I spoke to a motorsports attorney. He told me: “In 2026, waivers are being pierced more often, especially regarding ‘Gross Negligence.’ If you were driving way over your head, the waiver might not save you from a lawsuit.”
Comparison Table: Liability Options
| Feature | Physical Damage Only Policy | Policy with Liability Add-on | Umbrella Policy |
| Your Car | Covered | Covered | N/A |
| Passenger Injury | You Pay | Covered (up to limit) | Denied (usually) |
| Legal Defense | You Pay | Insurer Provides Lawyer | Denied |
[IMAGE: Diagram showing the flow of money: Hospital -> Passenger -> Passenger’s Insurer -> Suing YOU]
Step-by-Step Action Plan
- Check Your Liability Limit: Look for “Bodily Injury Liability.” Is it $0, $25k, or $1M? $25k is nothing in 2026. You want at least $500k if you carry passengers.
- Read the Exclusion List: Specifically look for “Guest Passenger” or “Occupant” exclusions.
- The “Friend” Talk: Before they get in, ask: “Do you have good health insurance?” It sounds awkward, but it’s necessary.
- Don’t Drive at 10/10ths: If you have a passenger, dial it back to 80%. The risk-to-reward ratio of showing off is terrible.
FAQ
Does the track’s insurance cover the passenger?
No. The track’s insurance covers the track if the track is negligent (e.g., a fence falls on the car). It does not cover your bad driving.
Can I ask the passenger to sign a waiver for ME?
Yes. You can print a personal “Hold Harmless” agreement. It might not hold up in court against gross negligence, but it helps discourage a lawsuit.
What if the passenger is an instructor?
Instructors usually sign extensive waivers and understand the risk, but the financial mechanics (health insurance subrogation) remain the same.