RE: STATE FARM INS./ POLICY CHANGE WITH LATEST PREM.

["Marv De Beque" <debequem@xxxxxxxxxx>]

I too, had the same reply from my policy at State Farm with my 911.  They=20
went so far as to say that they would cancel my insurance if I so much as
roll my car on the track, let alone participate in a driver education event.

After much negotiation and due to my outstanding driving record, I was able
to get a nod and a wink compromise if I obtain external track coverage from
another company (not very cheap for the casual track user).  State Farm's
policy would be exempt during the event, but active at all other times.

I was told that this arrangement was essentially a probation period that
could be rescinded if I had too much track damage.  Although State Farm
would not be "paying the bill" with an external policy in place, their logic
was that if I was proving to be a risk on the track, then I could be assumed
to be a risk on the street.  Due to the cost of external insurance, I have
yet to track my car.

However, this does prove to be an excellent example of how insurance
companies perceive policy risks.  Insurance companies will also consider you
a high risk partner if you engage in activities outside that of driving that
carry risk, such as climbing, sky diving, bung jumping, or heaven forbid,
failure to use sanitary seat covers while visiting public rest rooms.  In
short, insurance companies would prefer all of us to drive Buicks, but only
to church once a week and remain safe in our easy chair the rest of the week
after getting off the bus.

The other factor is who the underwriter is.  I know of several other people
that carry State Farm and are covered for both driving events and club
racing.  The difference is who underwrites their policy, but there seems to
be growing opposition to providing coverage for cars on a closed circuit
race course.

I have posed the question of driver education events, once again, to my
agent.  I will let you know what I find.

Marv

- --
=7F=7Fdebequem@domain.elided
http://home.att.net/~mdebeque/index.html

>Date: Sat, 23 Jan 1999 20:01:26 EST
>From: DKoelmelM3@domain.elided
>Subject: STATE FARM INS./ POLICY CHANGE WITH LATEST PREM.
>NOTICE
>
>I just received by semiannual prem. notice for my M-3 (which actually
>went down) but with the typical insert with notice to certain policy
>changes such as '' THERE IS NO COVERAGE WHILE  VEHICLE IS
>OPERATED IN, ENGAGED IN PRACTICE FOR, OR IS BEING PREPARED
>FOR ANY RACING OR SPEED CONTEST. THIS APPLIES WHILE
>THE VEHICLE IS OPERATED OFF PUBLIC ROADS ''  *This sounds like
>drivers schools. I have done several schools and planned on a few this
>year but can't take the financial chance if this new policy change could
>be used against me in a legal confrontation. Hope for some opinions
>from some lawyers or insurance Exec. on our list.

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