NASCAR Racing Teams and Insurance Companies: A Winning Combination?
NASCAR’s partnership with insurance companies is potentially a fruitful collaboration considering the insurance’s benefits, including exclusive discounts and coverages.
In 2022, a few emerging insure-tech firms like Renegade Insurance are set to make their debut in partnership with Stewart-Hass Racing, where the racing teams and insurers plan to be a winning combination.
The racers often reach the speed of 120- 200mph on average, the fastest being 212.809 mph by Bill Elliot in 1987. The high-speed nature of the race makes them more susceptible to car crashes, bodily injuries, and other fatal accidents.
Although the championship has been continuously working to ensure the safety of its drivers and crew, the arduous insurance process and hefty price at times are deemed a challenge.
The race car drivers are independent contractors, unlike the pit crews recruited directly by the firm. As a result, they are responsible for purchasing their own insurance plans during their racing career with the help of prize money, sponsorship, and appearance fees.
According to Total Sportal, the insurance cost for small racing teams amounts to around $150,000, reaching up to $500,000 for big teams. The premium cost can be lower depending upon the number of races a car completes successfully without accidents.
As per NBC Washington, an average race team cost amounts to around $1.4 million per competition. Should the car be totaled during a race, the total replacement cost can add up to $400,000.
Despite the risks involved, the partnership is definitely profitable if the team wins or lasts longer than their debut. But, if a racer crashes in the beginning and loses momentum, the insurers can lower their expectations.
However, the publicity a partner garners through NASCAR is unmatched. As one of the most-watched sporting events across the county, it offers a tremendous opportunity to publicize in front of millions. From the company’s name and logo in gears, and even pit boxes, sponsors can get the exposure required to make their marketing campaign a successful feat.
Both parties offer complimentary benefits essential to each other in the long run. With insurance companies providing exclusive benefits to the racing teams and NASCAR offering much-needed exposure, this combination ought to be a winning pair.
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