It takes both money and time to make a car from scratch – and this makes kit cars special. Therefore how do you ensure you have the correct insurance to protect your prized possession, if it’s a Lo-Cost Lotus Seven replica, a Challenger E-Type, or and AC Cobra?
Kit cars are unlike ordinary vehicles. A kit car is not driven out of a showroom, but is pieced together in your garage. Off-the-peg insurance is okay for standard vehicles, but kit car owners typically need special cover, tailored to suit their particular needs. You may have to pay slightly more for your kit car insurance, particularly if you have modified the car, but the extra cost is usually worth the extra peace of mind.
Kit cars and the law
To drive a kit car legally on the highway it must pass the Individual Vehicle Approval (IVA) test, which costs around £199. Tests are done at approved sites by inspectors from the Vehicle and Operator Services Agency. After the kit car has passed its IVA it will not typically require an MOT for another three years. However, your kit car must have a valid statutory off road notification or tax disc.
What does kit car insurance cover?
For kit car insurance, all the typical risks to your car are covered, like damage due to a road accident, fire and theft. However a specialist policy is also able to include build up cover that insures your kit car as soon as the parts are delivered. Another way to see this is that you could make a claim if your vehicle or parts were stolen or lost before it was completely assembled. Some kit car insurers also offer cover for component parts which are lost in transit or damaged upon arrival. Kit car parts can be pricey, so build up cover can be a monetary lifeline.
A specialist insurance firm that will also typically pay out an ‘agreed value’ if the kit car is stolen or written off, unlike standard insurance policies, which usually pay out the market value. Agreeing a value is vital since it is usually difficult to price a kit car, particularly if they have been modified. In addition, kit cars vary from ordinary cars since their value does not depreciate always, over time. Kit cars, in fact, can in some instances rise in value as the years pass. If a value is agreed with your insurer at the beginning, you can make sure that the policy will pay out the total value of the car in case of a claim.
In the worst case scenario is your car is written off, you could want to salvage the parts, particularly if they were expensive. Salvage retention cover allows you to purchase the wreckage back and use any of the salvage parts to create a new car. But remember that if a wreckage is seriously damaged, it could be against the law to salvage any parts due to the potential safety hazard.
Adding extras to my kit car insurance policy
If you need something slightly more than basic cover for your kit car, you can include a range of extras in your policy, however you this will also incur additional Charges to your premium. Some breakdown policies exclude kit cars, hence owners should verify the details if they require emergency assistance. It could also be a good idea to include legal expenses in your kit car policy to ensure court costs are covered.
If you are a racing or track enthusiast, ensure you have the correct cover for these activities. The identical is true for kit car owners who use their vehicles for formal occasions like weddings. Also if you have plans to take your kit car abroad, carefully read the small print. Some policies include European cover up to a particular limit, but don’t ever assume that insurance is either in place or adequate.
Many kit car insurers exclude motorists under the age of 21. If you are a young motorist, you will almost definitely have to pay a greater amount for your insurance, assuming you can find an insurance provider that is prepared to take the risk.
How to get a cheap kit car insurance quote?
If you take your kit car out occasionally, you could be able to arrange a lower mileage limit with your provider in return for a smaller premium. Just bear in mind that if the limit is breached, your policy may be invalidated.
Insurance firms insist that you pay a particular amount towards a claim, also known as excess. Car insurance policies come with a compulsory excess, usually around £200. If a greater voluntary excess is arranged, you are often rewarded with lower premiums.
Many specialist kit car insurers provide discounted premiums to members of vehicle owners’ club.
If you have created your car from scratch, you may be perfectly pleased to repair the car if it gets damaged – in that case you may want to acknowledge ‘parts only’ insurance. The policy may then pay out for essential parts, but not for labour, usually saving about 30% on the premium.
Always scour the market for the best car insurance policy at the right price for you. Prices can be compared quickly and easily using FreePriceCompare’s free online service, so start looking for a great deal today!
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