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Message started by Dave Cotie on 08/31/10 at 19:21:29

Title: Rallying and Life Insurance
Post by Dave Cotie on 08/31/10 at 19:21:29

Specifically looking for information around rally-X but also interested in performance rally.

My wife and I are in the process of increasing our life ins., question comes up about "high risk activities" ::). I proceed to explain to the medical interviewer that I am planning to do some rally-X and explain what it is.

I never want to give an ins. co. reasons to deny coverage. I am a little nervous about this causing issues. Anyone else gone through this and willing to share their experiences? If you don't want to post it send me a pm or e-mail.

Title: Re: Rallying and Life Insurance
Post by Wedge on 08/31/10 at 21:11:13

I would say definitely tread lightly on that subject.
I went through that with my insurance policy through work. They were perfectly happy to provide any/all health benefits. But I was totally denied on the life insurance, the insurance company was completely inflexible on that.

Sidenote: I'm pretty sure that's the primary issue for the car insurance companies regarding rally cars also. They'll accept any other risk, but not life insurance.

Title: Re: Rallying and Life Insurance
Post by Jeff_Hagan on 08/31/10 at 23:47:56

Dave Cotie wrote on 08/31/10 at 19:21:29:

I've got coverage through the group policy at work, but just the basic amount - I haven't purchased additional life insurance.

Our current insurer and the one before that told me the same thing: as an unpaid amateur co-driver and road race corner marshal I'm covered, but if I were to ever co-drive professionally I wouldn't be. But YMMV.

Title: Re: Rallying and Life Insurance
Post by John_Vanos on 09/01/10 at 06:19:08

My uncle works for London Life and got me a policy that specifically covers motorsport. Once I applied I got a call from someone out in Manitoba who then interviewed me on the phone for about 30mins.

She asked me all sorts of questions like maximum speed, average speeds, she tried to get a handle on whether this was properly sanctioned (mentioned we are aligned with FIA) etc.

She seemed to not think rallying was all that bad as the maximum and average speeds are relatively low compared to circuit racers and the fact that this happens out in the middle of nowhere.

I pay about $11/month for $100,000 coverage but im sure you can get more coverage than that, it's just that i'm close to worthless anyway!

If anyone likes I can put you in touch with my uncle.

Hope that helps
John

Title: Re: Rallying and Life Insurance
Post by gully on 09/01/10 at 08:12:06

Should ask the Agent if Snowmobilers or sport fishermen are classified as dangerous sports.

By stats they are two of the most dangerous sports around

I live in Kawartha Lakes area and deaths from both are very high.

I use CAA medical insurance as it specificaly states that Amatuer Motorsports participents are covered. I was working Targa when I first purchased out of Province coverage

Pete g
Pete g

Title: Re: Rallying and Life Insurance
Post by Dave Cotie on 09/01/10 at 08:49:09

Yes, Peter I was going to ask if hunting was also classified as high risk in addition to the two you mentioned.

I maybe worrying for no reason here, however i want to make sure that my wife and kids get the money if something happens to me.

Title: Re: Rallying and Life Insurance
Post by Robert Roaldi on 09/02/10 at 07:13:01

I can only give my own experience. In 1985, I got a Regional B racing license from CASC. I had taken a racing school and had vague plans to race in the Honda series, which never happened. Around that time I changed jobs and applied for additional life in the new company. I never lie to insurance companies, even double-check the spelling, and was not denied coverage. They had no problem with racing. I had to answer all those questions about max speed, etc.

About 5 years later, I changed jobs again, applied for addtional life and mentioned on the form that I did marshaling and other volunteer work at performance rallies. I specifically said that I did NOT compete. I gave a detailed description of the activity, answered all the questions, and was DENIED coverage. Bizarre, I bet that hiking in grizzly country is more dangerous than talking on HAM radio at rallies.

It seems like a crap shoot. I bet some companies know more than others about this stuff, and might choose to go after business that others don't. I don't know who they are though, so I am not much help, sorry.

You'd think that after all these years, ASN Canada, or CASC, or CARS, or SCCA, or SOMEBODY in the racing community somewhere would have studied this, or lobbied, or did something to find out about these things. I mean, every single person involved in motorsport needs insurance in all aspects of their lives, so you'd think that by now the studies would have been done proving that we're a safe group to deal with, or that we're not, or something. But I have never even heard a hint of such a thing. When insurance comes up, most people duck hoping they don't get caught in the crossfire.

What about parachutists? sky-divers? scuba divers? fire-fighters? police? it's a long list.

Title: Re: Rallying and Life Insurance
Post by Mark-7 on 09/02/10 at 17:09:49

In my honest opinion...

The interaction between life insurance, auto insurance, event insurance and racing is a very gray zone. Many people don't want to lobby insurance companies or lawmakers for fear of what they will say. I would be terribly disappointed; however, not surprised if rallying in the future would all be limited to private property.

For life insurance I think its best to find a broker who you can trust and be completely honest with them.

Mark

Title: Re: Rallying and Life Insurance
Post by rosswood on 09/02/10 at 18:04:04

In the past RallySport Ontario and a bit later some CASC racing guy, whose name I forget, and very recently CARS attempted to arrange for group coverage of motorsport people with no luck. They say that the small potential number of policies just isn't worth taking on what at the very least is perceived as a high risk group.

Title: Re: Rallying and Life Insurance
Post by jimmy on 09/07/10 at 12:42:04

I asked my agent what activities were not covered.

His answer (as defined in the application) included racing. We looked up racing in Webster's dictionary (if the policy does not define a term, then it defaults to common English usage - at least in the U.S.) By the definition in the dictionary, what we do as rally is not considered racing, so I could honestly answer the question "No, I do not engage in any of those dangerous activities".

Disclaimer - yes, I work for an insurance company (but not the company that I was buying life insurance from).

press on,