Race car drivers participating in motor sports racing as well as those who enroll in on-track precision driving classes know that their standard car insurance may not cover them for many activities on a race track. They will make sure they have proper coverage for these activities, even if they don't operate expensive Formula 1 or custom-built Le Mans racers.

Any time cars drive on a track, the track owners can be held liable for damage to property and injury to spectators, drivers and staff. This calls for a type of race track car insurance that includes general liability and accident coverage for medical treatment and damage to property. Track owners will also want a policy covering contingencies such as event cancellation or change of venue due to weather or other factors. Additional policies exist to cover the directors and managers of the track for mismanagement of funds.
In addition to track insurance that covers a particular location during the race season, event organizers, organization heads, and planners procure similar track insurance policies that cover a particular event. These are policies designed to last only a short period of time, even a day or two, but cover the same types of risk.

A circumstance where your private car insurance policy may cover a race track activity is for a driving class where you are using your own car and are not racing. For drivers who participate in races or timed events, they find it necessary to also carry their own insurance regardless of the coverage track owners or event organizers will have. Race car drivers obtain race insurance that even specialty insurers may not offer. Whenever they race in speed contests or timed events, they need liability coverage for injury and property damage while they are on the track as well as coverage extending off the track.

Transporting your race car to a track can expose you to theft, accidents and damage to your vehicle as well as when it is in the shop at the track. This type of race car insurance carries certain restrictions so the driver does not increase the risk of loss. The race car will be restricted in its permitted use, excluding casual driving on streets. The top insurers will require a clean driving record and proof of ownership of a daily-use legal form of transportation before issuing this type of insurance.

Whether you are an occasional drag strip participant or are the real deal IndyCar or NASCAR circuit participant, having the right race car insurance is as important as that restraint harness or roll bar when race day comes.