Auto Accident during High Performance Driver Education (HPDE) - Read clause, opinions

What is the name of your state (only U.S. law)? Arizona

I am trying to determine whether my insurance company will cover an accident that happened while attending an HPDE (high performance driver education) event. Here is the clause in the contract:

M. Driving contest or challenges includes, but is not limited to:

1. A competition against other people, vehicles, or time; or
2. An activity that challenges the speed or handling characteristics of a vehicle or improves or demonstrates driving skills, provided the activity occurs on a track or course that is closed from non-participants.

Exclusion B.4 is replaced by the following:

4. We do not provide Liability Coverage for the ownership, maintenance, or use of any vehicle while being operated in, or in practice for, any driving contest or challenge. If an accident occurs on a public highway, this exclusion (B.4.) will apply only to the extent that the coverage limits....



I'm assuming it is pretty clear by stating under M.2. "An activity that challenges the speed or handling characteristics of a vehicle or improves or demonstrates driving skills, provided the activity occurs on a track or course that is closed from non-participants." I just wanted to see if someone could provide some interpretation. The downside is if I inform the insurance company of the claim and where it happened, we could receive a non-renewal.

Thanks

what are you looking for? Not only does the section you mention specifically allow for denial, this part:

M. Driving contest or challenges includes, but is not limited to:

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gives them a lot of leeway in the definition.

The downside is if I inform the insurance company of the claim and where it happened, we could receive a non-renewal.

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Non-renewal? Maybe, maybe not but you should expect a denial of the claim in either case.

Ideally I would like to claim the vehicle, it seems that they used to cover this prior to the clause, but as you mentioned - the "not limited to" section pretty much allows them to exclude whatever they want.

Sounds like it wouldn't be worth the effort to try?

I don't know any insurance that covers any sort of racing or racing related activity, especially if it is on an actual race course whether it is permanent or temporary. The act of racing itself precludes typical insurance coverage. If it were that easy, I'm sure the Indy car owners would be down to the local Progressive office.

You didn't post the complete section concerning the section B4. I wonder if that didn't continue and state that the insurance will only cover liability to others and specifically denies coverage of the clients vehicles, even on a public roadway.

A claim from an accident at any "legit" HPDE event (i.e. at a track) is going to be denied almost universally. No insurance covers it (although I have seen some clubs offer event-specific insurance, which would be irrelevant to this discussion). In cases like this, it is better to "never to have filed" than to "have filed and lost", particularly if the damage isn't too great.

However, and with the big caveat that this is entirely wrong, immoral, a breach of your insurance contract, fraud, and probably illegal, I have seen some people tow their car from the track to a relatively nearby spot, and then report the accident. I have not seen any of these people since (maybe they're in jail?), and I certainly do not advise it, but clearly, some people believed it was a viable option.

You Are Guilty said:

A claim from an accident at any "legit" HPDE event (i.e. at a track) is going to be denied almost universally. No insurance covers it (although I have seen some clubs offer event-specific insurance, which would be irrelevant to this discussion). In cases like this, it is better to "never to have filed" than to "have filed and lost", particularly if the damage isn't too great.

However, and with the big caveat that this is entirely wrong, immoral, a breach of your insurance contract, fraud, and probably illegal, I have seen some people tow their car from the track to a relatively nearby spot, and then report the accident. I have not seen any of these people since (maybe they're in jail?), and I certainly do not advise it, but clearly, some people believed it was a viable option.

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Believe me, I've given this option a thought, but I'm not going to commit fraud. My loss, as significant as it is, will get resolved in due time.