Most every auto policy I've seen has an exclusion for this, this is not word for word, but close;
Exceptions; any form of organized racing,timed events,demostrations of speed, and a few other things I can't remember.......
I know of one case similar to the one Bill posted, simple solution, the insurance company went ahead and paid the claim and after the owner cashed the insurance check, they filed insurance fraud charges against him and he was arrested, charged and convicted!!!!!!!!!!!!
READ ALL EXCLUSIONS ON YOU AUTO POLICY!!!!!!!!!!!!!!!!!!!!!!
David