WEBVTT - Who Insures Race Cars and Their Drivers?

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<v Speaker 1>Welcome to Brainstuff production of iHeart Radio. Hey brain Stuff,

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<v Speaker 1>Lauren Bogle bam here. Most drivers buy car insurance to

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<v Speaker 1>protect themselves in case they're in an accident and their

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<v Speaker 1>car or another person's car is damaged. But what about

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<v Speaker 1>race car drivers? The sport is built on speed. NASCAR drivers,

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<v Speaker 1>for instance, race its speeds of up to two hundred

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<v Speaker 1>miles an hour, which is a little bit over three

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<v Speaker 1>d kilometers per hour. And at speeds like that, accidents

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<v Speaker 1>are bound to happen, and they do. The cars are

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<v Speaker 1>built specially to break apart on impact, protecting the driver

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<v Speaker 1>by scattering the force. Some fans find the crashes to

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<v Speaker 1>be the most exciting part of the sport. So who

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<v Speaker 1>ensures these drivers and their race cars where accidents are

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<v Speaker 1>par for the course. Well, if you know anything about racing,

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<v Speaker 1>and especially NASCAR, you know the drivers have sponsors and

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<v Speaker 1>lots of them, and some drivers cars might be sponsored

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<v Speaker 1>by insurance companies. So does that mean the company insures

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<v Speaker 1>the car too? Sometimes, but not always? And if not,

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<v Speaker 1>then who does? Let's break it all down first. The

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<v Speaker 1>pit crew and other members of a racing team are

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<v Speaker 1>usually employed by the team, and that team usually provides

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<v Speaker 1>them with health insurance, just like any employer in the

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<v Speaker 1>United States can provide you with health insurance. However, drivers

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<v Speaker 1>are often independent contractors and employment status that generally comes

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<v Speaker 1>with no benefits, including insurance coverage of any kind. This

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<v Speaker 1>does vary somewhat, as some states have laws requiring workers

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<v Speaker 1>compensation or disability coverage, but that's an exception to the rule.

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<v Speaker 1>In short, drivers generally don't receive any benefits unless they're

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<v Speaker 1>hurt on the job, and often not even then. However,

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<v Speaker 1>professional drivers do have options for insurance, since being a

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<v Speaker 1>professional driver comes with perks and often major sponsorships. Some

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<v Speaker 1>insurance companies compete the right to negotiate contracts in exchange

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<v Speaker 1>for publicity for their brands, and most drivers are usually

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<v Speaker 1>in good physical condition as is demanded by the sport,

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<v Speaker 1>so they pose few risks to insurance companies outside of

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<v Speaker 1>the time that they're actually competing. But what about the cars.

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<v Speaker 1>The team owners can't just call up their local state

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<v Speaker 1>farm rep and ask for a policy for a race car. Instead,

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<v Speaker 1>racing teams typically must ensure their cars with companies that

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<v Speaker 1>specialize in motor sports. There are several such insurance companies,

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<v Speaker 1>and they typically based the policies on agreed upon values

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<v Speaker 1>of the cars and on the competition schedules. That is,

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<v Speaker 1>the more races on the schedules, the more the policies

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<v Speaker 1>are likely to cost. Racing assets such as tools, trailers,

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<v Speaker 1>and facilities, and even the tracks themselves need to be

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<v Speaker 1>insured too. Drivers may also carry business liability coverage and

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<v Speaker 1>life insurance in addition to their health insurance, and spectator

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<v Speaker 1>and liability insurance is also available through companies that specialize

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<v Speaker 1>in motor sports insurance. That's because of all spectator injuries

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<v Speaker 1>at sporting events, most occur at auto and motorcycle racing events.

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<v Speaker 1>That's because fans sitting near the track are at higher

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<v Speaker 1>risk of being hit by an out of control vehicle

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<v Speaker 1>or debris from a crash. Today's episode was written by

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<v Speaker 1>Shers three Win and produced by Tyler Clang. For more

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<v Speaker 1>on this lots of other fast topics, visit how stuff

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<v Speaker 1>works dot com. Brain Stuff is production of iHeart Radio.

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