NASCAR drivers make sure they have life insurance

Insurance is one of the most taboo subjects in auto racing. Some drivers clam up when the topic arises and feel uncomfortable disclosing details about their life and disability insurance policies. Others are more forthcoming. Because drivers from NASCAR to Formula One are independent contractors, they are responsible for getting coverage on their own.

''I want to make sure if something happens to me that my daughter and wife are well taken care of and they don't have to worry,'' said NASCAR Cup rookie David Reutimann, who drives for Michael Waltrip Racing.

``I want to leave them more than a good memory or two. You don't think about that side of the deal but What makes me write that check is the fact that if they need it, it's going to be there.''

Although most forms of racing are safer now than a few decades ago, an injury can cost a driver his livelihood and a fatality can leave spouses, children and a drivers' parents with nothing to recoup.

''It's just one of those things, you don't need it until you need it,'' said veteran Cup driver Jeff Burton, 40, who will race in Sunday's Ford 400 at Homestead-Miami Speedway. ``If you don't have it before you need it you're in trouble. You have to be willing to paint a worse-case scenario.

``You could be driving down the road and somebody runs into you. People forget we need insurance not just because of what we do, but if we get hurt, the skill and ability I have is to drive a race car. I don't have a college education and there's not a whole lot I can fall back on.''

PREMIUMS VARY

Several successful NASCAR drivers said they pay between $150,000-$200,000 per year for coverage. Depending on the coverage they want, premiums can be as little as $5,000 or as much as $1 million.

The higher premiums can buy a driver as much as $100 million worth of coverage.

Several drivers said they bemoan paying for life insurance, but acknowledged it's a necessity. The price also pales in comparison to what they pay to buy private jets, own custom-made multimillion dollar motorhomes and lavish residences.

''Some race car drivers dream insurance premiums are too high, but how many race car drivers are making less than $300,000 a year?'' said insurance broker John Gorsline, who specializes in insurance for drivers and represents several NASCAR stars. ``If you look at their income and exposure they're not paying that much.

``We're protecting their future income or for disability; we're protecting the livelihood of their family in case something happens prematurely, so what's that worth?''

Gorsline said that driver's insurance policies premiums are comparable to what high-income professional athletes and executives pay.

DOING HOMEWORK

Industry analysts said insurance premiums have gone down in the past five or 10 years as safety measures have improved. In NASCAR, for example, innovations include SAFER barriers (''soft'' walls that help absorb the impact from crashes) and the NASCAR-designed Car of Tomorrow debuted in Cup this year with features such as the driver's seat closer to the center of the car. Drivers also now wear a HANS device (a head and neck restraint system).

Drivers typically hire brokers to negotiate with insurance companies on their behalf. Brokers shop for the best coverage, and according to drivers and industry analysts, most policies are underwritten by Lloyd's of London.

But first, insurance brokers do homework on their potential client. Factors used include the driver's racing history, the quality of equipment that will be driven and the quality of the team.

They also evaluate the driver's family background, personality, personal conduct away from the track and his or her emotional and mental health. Some drivers are involved in the insurance process, while others leave it to their attorneys, accountants or managers to work it out with the brokers.

Gorsline said that some drivers only ask three questions: ``Where do I sign? How much is it? Have you taken care of everything?''

PLENTY OF DECISIONS

The insurance issue also might arise with a driver's NASCAR team. In some driver contracts, the team stipulates the driver buy disability insurance, while others leave it up to the driver.

Some teams have guaranteed contracts that will pay the driver's salary, even if the driver gets injured and cannot race, while others don't.

''The whole injury clause is a major area of negotiation for a driver and team,'' said attorney and agent Alan Miller, whose clients include or have included Dale Earnhardt Jr., Jeff Gordon, Jimmie Johnson, Ward Burton and Clint Bowyer.

Miller said how much a driver might want to consider spending on disability and life insurance can hinge on ``what's at risk.''

''If you're dealing with a young driver starting out, his need for disability insurance may be totally different than a driver driving 10-15 years who is financially set for life,'' Miller said.

Cup driver Kyle Busch, 22, who is one of the youngest drivers on the circuit, said he got insurance about four years ago when he began competing in the Kyle Busch Series because, ``I've got people behind me, and not only the ones that work for me.''

Jeff Burton said he began looking at insurance differently once his wife, Kim, made a commitment not to work so they could spend more time together.

''I was the only income, so that meant my responsibility was to provide that,'' said Jeff Burton, who has had insurance for about 20 years. ``Then as my responsibilities grew financially and with children, I had to continue to change with what was going on in my life.''

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