25 May Auto Insurance: NASCAR Style
People often purchase insurance on the off-chance of a dangerous accident, but what is the policy for someone who professionally works in a dangerous position? Some customers buy auto insurance for the necessary commute to work, but NASCAR drivers risk life and limb racing laps at over 200 mph. Accidents can still occur, so logically there needs to be an insurance policy to cover the worst-case scenario. From the decades of professional racing, racers have managed to safeguard their NASCAR insurance amid their high-speed passion.
Although driving NASCAR races is a risky career, the notion of insurance is not always an easy one when it comes to the drivers. For starters, while driving teams or pit crew members are covered by the company they work under, drivers usually come as independent contractors. This means they are generally responsible for purchasing their policies, whether life or auto. While some contracts offer stipends from teams or workers’ compensation based on state laws, they are not obligations throughout the country, and some drivers receive no direct benefits beyond a potential disability coverage. Finally, some drivers are simply not quick to purchase insurance under the reminder of how dangerous their jobs can be. In short, most NASCAR drivers do not experience many benefits beyond the average insurance holder from their profession.
However, being a professional NASCAR driver does allow a few perks by fame and position. Because NASCAR drivers are independent contractors, insurance companies such as Nationwide, Liberty National, and Auto-Owners Insurance often vie for long-term and lucrative negotiations with ongoing champions for good publicity. Contract deals with insurance companies alone become headlines for NASCAR fans as popular races move from contract to contract. Also, the athletic health standards for a professional driver leads to low premiums based only on the number of races and the car driven in each race. When it comes to auto insurance, the grave concern for racers rarely centers on the driver. Furthermore, major NASCAR insurance deals often encompass more than the detail of the car. Additional negotiations can lead to coverage on business liability, coaches, private homes, or other security risks. For a sport like racing, auto insurance, when purchased, can go far.
Like most people, NASCAR racers purchase auto insurance based on their risk of facing an accident. Though many agencies do not offer direct insurance to their drivers, the act of independently and publicly backing an insurance company can provide plenty of additional bonuses as far as coverage goes. Nothing can eliminate the risk of an average race, but there are clearly far worse positions to be in than behind the wheel.