This is the question. It is also one that will not be solved by insurance. Having insurance will not make anyone more honest and it will not solve any of the issue you bring up in the above post.

Most major races require liability insurance which does not cover collision or damages, that is separate. Even if you have collision, most people will avoid making any claim to keep their rates low, so the unscrupulous will continue to lie and or avoid any responsability. It falls back on the racers to police their attendance to weed out the cheats, but attendance at most events is so low now most do not want to press the issue. Very few cases are so black and white anyway as to be able to black ball someone.

In theory everyone should be responsable for their own actions, but this is not how it works in our society. Manadatory insurance is just a tax to try and make people feel better. Forcing insurance will not make anyone more responsable to their actions and it will not curb poor behavior.

That being said, today not carrying liabilty is just risking bankrupcy with the way the laws work, but that goes for racing a sailboat or just owning property of any type.