How to get insurance for a rally car, and what you need to know before you apply.
Rally cars obviously aren’t like most other vehicles, and this affects their insurance cover.
If you want to insure these special vehicles, or yourself while driving them, there are various options. In addition, to register a rally car for road use, certain forms of insurance may be mandatory.
This guide explains some of the things to be aware of when you are shopping for the right cover.
What should I know about rally car insurance and registration?
Rally cars can be driven on closed tracks as well as on public roads, for reasonable purposes and when appropriately registered, depending on the state.
Generally, a rally car registered to drive on public roads must have compulsory third-party insurance like any other on-road car. This may be included in the price of vehicle registration, or the fees for getting a certificate of approval from your state motor authority.
CTP insurance is often required by your state motor authority, for any rally cars that will be driving on public roads, even though the CAMS National Insurance Program also includes general public liability insurance. You are generally covered by the CAMS National Insurance Program while participating in sanctioned events, but it can be a good idea to make sure by checking with your club officials before participating in events.
Sometimes specific events will also have their own insurance requirements for entry, in which case it is usually a competitor’s responsibility to make sure they are adequately insured.
Note that the laws surrounding rally car legality on the roads may vary between states and locations, so it’s important to make sure any information is applicable to your specific situation. You can contact the Confederation of Australian Motorsports (CAMS), or other organisations mentioned on this page in order to confirm any information.
Is there any additional insurance I should consider?
The CAMS National Insurance Program is organised through AJG Sport insurance brokers and risk specialists. CAMS members who want additional cover on top of what’s provided by the National Insurance Program can contact AJG Sports for additional options, including:
- Race vehicle and trailer insurance: Damage and theft cover for race vehicles, trailers, tools, equipment and uniforms, while garaged, in pits and in transit.
- On-track cover: Tailored protection against damage to race vehicles while on track, in competition and in practice or testing.
- Life and trauma insurance: Personal cover when you are participating in motorsports. This is typically excluded from standard life and trauma insurance policies, and is worth considering as an addition to your everyday policy.
- CAMS personal accident top-up: Raises the limits of the CAMS National Insurance Program personal accident insurance.
- Public liability for non-CAMS activities: Public liability insurance, such as third-party damage cover, specifically designed for activities that are not covered by the CAMS National Insurance Program.
AJG Sports is a good place to start looking for rally car damage insurance and getting quotes, but it isn’t the only option. If you want a wide range of protection, the most cost-effective method might even be to combine cover from different providers.
Where can I find insurance for rally cars?
Prestige car insurance providers, such as Shannons or Dawes Car Insurance, may be able to help you with a limited level of cover.
However, cover available from these providers might only include vehicle transport and storage cover, where your car is only insured while being transported to and from registered events, or while in storage. Such policies can specifically exclude any type of damage caused while the car is being driven.
Insurance that covers damage to a rally car while it’s being driven is likely to cost significantly more than transport and storage cover alone, and you will probably need to contact an insurance broker to look for the best deal.
How do I choose a rally car insurance broker?
Cover and costs quoted by brokers or insurers willing to insure a rally car can vary widely.
One important consideration is whether or not the broker or insurer holds an Australian Financial Services License (AFSL). If a provider holds an AFSL, they are required to maintain a certain standard of service, so you have additional consumer protection.
Two licensed insurance broker groups offering these services are:
- Arthur J. Gallagher insurance brokers. This group provides insurance for CAMS under the name of “AJG Sports”, and also for many other associations. You can ask about individual cover.
- Piranha Insurance Brokers. These brokers specialise in insurance for motorsports, and can help you find a range of cover, as well as highly tailored options such as uniform and motorsports accessories cover.
You may be able to find cheaper insurance from providers that don’t have an AFSL, many of which are based overseas but are willing to insure vehicles in Australia. However, it is important to be aware of the limitations involved.
For instance, what would happen if an insurer refuses to pay a claim which you feel is covered under your policy? If you have an overseas provider without an Australian license, you might have little recourse in the event of a dispute.
Cost and cover: How it works
Generally, your insurance premiums are determined based on two factors:
- The sum insured. The value of your vehicle and all insured items.
- The risks involved. The situations you have insured against, and how likely you are to make a claim.
The higher the sum insured and the higher the risk, the higher your premiums are likely to be. As they can be affected by a range of factors, an insurance broker may be able to help you modify your policy to make it more affordable. For example, they could help negotiate a higher excess to lower the premiums. You will pay more up front if you have to make a claim, but your monthly payments will be less.
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