Vintage race cars, a subset market of classic cars, are some of the most valuable vehicles in the world. A symbol of a bygone era of racing, these cars are some of the most highly valued by collectors. In 2018, the world's most expensive car, a 1963 Ferrari 250 GTO, sold at a private auction for $70 million. 

Vintage car racing takes place across the U.S., from Texas to Ohio to Virginia, with organizations such as the Sportscar Vintage Racing Association (SVRA) organizing annual events. And while participating in these events can be a dream come true for enthusiasts, partaking entails some work on the part of car owners—particularly to ensure that a dream hobby doesn't turn into a financial disaster.

“Coverage options have evolved over the years," says Bryant Kolle, regional vice president at Hagerty. “Today, the main coverage that clients can get includes storage, transportation and paddock damage. That is where the car is located 99% of the time and where significant losses can occur."

In addition, “if a vehicle is road legal, liability would also apply," Kolle explains. “Sometimes, depending on a client's profile, paddock liability is available for non-street legal race cars due to the high volume of spectators present at venues."

Paddock liability provides coverage for the vehicle while it's in storage, being worked on, serviced and maintained at a facility. It also provides coverage while the car is in transit, going into the trailer, to and from an event and while it's in the paddock and not on the racing surface. Additionally, paddock liability provides a first layer of physical damage coverage if, for example, damage is caused by a storm or another vehicle or if the car catches fire while in the paddock.

Vintage races and race clubs are unique in nature. Many of the clubs have their own rules and vehicle cut-off dates, leaving uninitiated drivers unwittingly flouting the rules of participation and possibly even without insurance coverage.

Options are available when it comes to providing coverage. “Specialized brokers can offer on-track physical damage or liability for wheel-to-wheel racing," Kolle says. “However, this coverage isn't popular because it is expensive, with large deductibles and premiums."

Few insurance carriers offer this type of specialty insurance coverage, and agents and clients need to be cognizant of this when looking for racing coverage.

“Many specialty insurance carriers provide some type of exclusion for vehicles that are raced or driven on closed courses," says Tim Dadik, vice president, agency experience manager, Berkley One. “Their ability to keep premiums low is based on limited pleasure use of a vehicle, not a vehicle raced around a track with other participants in close proximity."

“So, it's important for the owner of any vehicle driven outside of pleasure use to understand their contractual limitations and what is covered and what isn't," Dadik explains. “Venues that offer track usage often have their own 'day of' coverage that a participant can purchase."

Valuations are a crucial element to obtaining coverage, yet placing a value on a vintage race car can be challenging. Agents can help their clients by ensuring they “stay on top of valuations," Kolle adds. “The market is changing quickly and the old days of setting a value and leaving it alone for three to five years are gone."

Olivia Overman is IA content editor.