If there ever was a state with an enormous history for drag racing, it would definitely have to be California. Most people don’t realize that the sport started out in the dry lake beds of the hot California deserts. It was actually known as a underground sport with only a handful of participants. Not many people know that drag racing dates back to the late 1920s. Or even cars just started exceeding speeds of over 100 MPH in the early 1930s. We can take our hat off to Wally Parks from Southern California that founded the NHRA in 1951. Drag racing will always be a very special sport to me. This article will explain how to purchase life insurance for California drag racers at the lowest possible cost. Talking about insurance is boring but I promise to make the best of it.
If you are shopping for life insurance, take a few minutes to read this article. I guarantee it will help you receive lower rates.
Putting aside some of this great history for a minute. I have been receiving a lot of calls from Ca residents shopping for life insurance for California drag racers.
Since my main market is providing life insurance products for racers active in drag racing and all the other Motorsports. I thought it was time to write a blog post specifically for the California drag racers. Drag racing is a sport I have been a big fan of and also a participant for many years. I’m from the Midwest (Illinois) so the winters put an end to the sport for us for more months than I care to appreciate.
Let’s talk about how to buy life insurance when active in drag racing and receive the lowest premiums at the same time.
The first fact I want to mention is the life insurance industry looks at Motorsports racing as a high risk activity. This holds true if you race cars, boats, motorcycles or anything else that has a starting and a finish line. One of the first questions I receive is, how expensive is life insurance for drag racers? My answer is usually, not at all expensive. It can get a little pricey depending on what you drive because it is based on the dangers of the specific class of car.
For example, if you drive a Top Fuel Dragster, a Nitro Funny Car, a Jet or Rocket powered car it can get a little pricey. The companies we use have very liberal rates for racers so getting covered is never a problem. At the same time the premiums are also going to very affordable. In many cases the premiums will be no more than a person who is buying life insurance and plays tennis or golf instead of Motorsports racing.
Let’s take a close look at how the best life insurance companies calculate their premiums for drag racers.
Here is the basic information the companies use to determine your premium:
- Maximum Miles Per Hour (Most Important)
- Average Elapsed Time (Very Important)
- Type of Fuel Used (Important)
- Racing Class Name
- How Many Races Per Year
- Experience Level
Flat Extra Charges:
The life insurance companies use a “flat extra charge” which is nothing less that a additional fee. This is to compensate for the added risk they are taking. The flat extra charges usually are based on numbers of $2.50, $5.00 and $7.50 per one thousand dollars of coverage. One note to remember is, the companies we use will remove the flat extra fee if and when you retire from racing. This is a great feature that would reduce your premium later down the road.
We have a bracket racer named Dave running a 69 Camaro big block on gasoline. Dave usually has average ET times of mid 9 seconds in the quarter mile at 140 MPH. You could experience a common flat extra rate of $2.50 per thousand. There also might be no extra charge at all. This all depends on the specific situation. If Dave is over 40, his premium would be higher that a younger person. So the premium volume would be substantial enough to possibly waive a extra charge for the racing.
The first step to calculate the premium by using a quoting engine as if there was no racing at all. Dave wants to apply for a 20 year Term policy with a face amount of $100,000. The example premium calculates out to be $1,000.00 per year. You would then multiply the face amount by the flat extra charge. The flat extra charge is based on each $1,000 of coverage. Due to the fact the face amount is $100,000, you would simply multiply $2.50 x 100 which would generate a flat extra fee of $250.00. Add the plans premium of $1,000.00 per year and you now have a total premium of $1,250.00 per year. If this sounds confusing, don’t worry at all. Simply call and we can explain it much easier over the phone.
Flat Extra fees are calculated on a case by case basis and many times there is no extra charge added.
We always use the most competitive companies that are more drag racing friendly with their rates and criteria. Some of the companies would automatically add a flat extra fee and others will not. Naturally we don’t want to see extra fees other than the conventional premium. This is why we use over 40 of the best life insurance companies. Even though you have a high risk sport you don’t have to pay high risk premiums.
This is so we can provide you with the best life insurance rates available. Many life insurance agents don’t really understand the racing sports because they don’t have any hands on experience. You could be placed with a company that is not geared for the lowest life insurance rates for 1/4 mile drivers. This happens when using carriers that don’t feel comfortable with the Motorsports, they end up charging more. The same situation would be for pilots, scuba divers, rock climbers and skydivers.
You have the option of totally eliminating any extra fees all together.
The one sure fire way to purchase life insurance for California drag racers is to eliminate the racing coverage. If you feel comfortable with not being covered while racing on the track, you can simply add an exclusion rider. Just keep in mind that not all companies will do this. Just a few will allow you to exclude a hazardous sport like drag racing. If you race in a usually safe and more mild class, you could go in this direction. You would be covered for everything else but the actual drag racing exposure while going down the track.
Most of the time when I get requests for life insurance for California drag racers. It is usually because the racers spouse is requesting it because she is worried about her husband being killed racing. If this is the case, make sure you are covered while in the act of racing. If you choose to go with a company that will allow exclusion riders. You could qualify for preferred rates as if you never drove a race car.
Your health history plays an important role when determining your life insurance rates.
If you are planning on applying for life insurance for California drag racers. The racing is not the only area of the application to be concerned with. Your current medical history becomes an important factor when shopping for the best life insurance rates. If you have any type of serious medical conditions, let your agent know right away. A simple medical pre-screen can help determine what company to apply with. Your overall health history will help determine what health rate class you will be able to qualify for.
While we are on the subject of health histories, your height and weight will also play a big part in the underwriting process. If the individual in question who is applying for life insurance is overweight or obese, the premiums can be increased or the application can even be declined.
What type of life insurance should I apply for?
What type of life insurance you apply for will not make any difference if you drag race or not. You have two main choices in life insurance plan designs to choose from. You have low cost Term life insurance and the permanent plan design called Universal Life. Many years ago Whole Life was very popular but due to it’s high cost, many companies no longer even offer it. Term life insurance by far is the most popular plan design mainly because of it’s very low cost. You can easily check out the premium cost comparison between Whole Life insurance vs. Term Life insurance on this webpage. To summarize the question, buy Term life insurance. It is much more cost effective than the others forms of life insurance.
I personally find about 95% of life insurance applicants apply for affordable Term life insurance. Term life insurance is available in term periods from 5 to 30 years. Make sure you apply for a long enough term period. Especially so you don’t outlive the policy when you still need it.
Do I have to be a member of the NHRA to purchase low cost life insurance for California drag racers?
No you do not, membership in the NHRA is definitely recommend because it is a great organization. But it will have nothing to do with applying for life insurance. Your life insurance will cover you if you race on an NHRA sanctioned drag strip or not. The premiums are also the same if you belong to the National Hot Rod Association or not.
Don’t hesitate to call us with any questions you may have or for a quote right over the telephone.
We specialize in life insurance for drag racers including the other motorsports such as boat, motorcycle and stock car racing. Feel free to use our quote engine to compare the most competitive companies side by side. Take a moment to read our about us page to read more about us and our business. Thank you very much for taking the time to read this blog post. If you put this information to work, you should have no trouble finding the best online life insurance quotes.