Automobile manufacturers design some very sophisticated and high-powered automobiles for sale to customers who use them for everyday driving and transportation and possibly weekend racing. At one time most road racing or drag racing enthusiasts custom-built their own performance cars from stock models using custom racing equipment. These drivers were also usually very experienced racing enthusiasts and knew how to handle such cars. The introduction of high-powered vehicles to non-racing drivers can be deadly to both the driver and others because they lack training and do not understand the vehicle's power. Standard markets often decline to insure these vehicles.
What is Automobiles/High Performance and Sports Cars?
High-performance and sports cars are production or modified vehicles with enhanced engines, suspension, brakes, or aerodynamics intended for speed, handling, or competition use. Coverage needs for these vehicles differ from standard personal auto policies because of higher liability exposures, increased repair costs, and unique equipment coverage requirements.
Who needs it
Owners and operators who commonly seek this type of coverage include private collectors, owners of modified street cars, weekend track participants, and small clubs or event organizers. Owners who drive heavily modified or high-horsepower cars often look for specialized options such as Motorsports Insurance for Car Owners or tailored Sports Car Insurance to address the additional risks.
What it typically covers
Policies written for performance cars usually combine several coverages to address specialty exposures:
- Liability coverage for bodily injury and property damage resulting from accidents;
- Physical damage (comprehensive and collision) including agreed value or stated value options;
- Equipment coverage for aftermarket parts, race-specific gear, or performance upgrades;
- Optional participant accident coverage for drivers and crew during organized events;
- Transport and storage coverage for race or show trailers.
For owners who use cars on closed courses or in competition, consider policies similar to Automobile Racing Insurance which focus on event liability and participant exposures.
Common exclusions or limitations
Standard auto policies may exclude professional racing, deliberate speed contests, or non-approved modifications. Typical limitations include exclusions for driving on unauthorized tracks, wear-and-tear, and unapproved aftermarket installations. Underwriting factors and explicit policy exclusions should be reviewed before purchasing.
Factors that influence cost
Premiums depend on vehicle value, driver experience, intended use (street vs. track), safety equipment, claims history, and location. Other considerations include whether the car is garaged, frequency of track use, and the type of parts installed. Owners of classic muscle cars or extensively modified vehicles may see different rating approaches — see resources like Muscle Cars Insurance for specialized underwriting examples.
Proof of insurance & compliance
When participating in organized events, many tracks and clubs require proof of liability insurance or event-specific coverage. Carry copies of your declarations page and any endorsements that extend coverage to track use or participant accident coverage. Event organizers and clubs should also verify their event liability limits and vendor or contractor exposures.
How to get a quote
Gather vehicle details (VIN, modifications, appraised or agreed value), driving history, intended use, and any safety certifications. To compare options and secure appropriate terms, talk to your agent.
Frequently Asked Questions
Will my regular auto policy cover track days?
Most personal auto policies exclude racing or competitive driving. Check your declarations and ask about track-day endorsements or separate motorsports coverage.
Can aftermarket parts be insured?
Yes, but you should list significant aftermarket parts or upgrades on the policy. Some carriers offer equipment coverage or agreed-value arrangements for modified vehicles.
How does usage affect coverage?
Intended use (daily driving, show-only, or competition) directly affects eligibility and premiums. Full disclosure of how the vehicle is used helps avoid coverage gaps.
Still have questions? Talk to a local insurance expert.