Kit car insurance - what you need to know
Nothing says ‘individual’ more than driving something you’ve put together yourself. But what do you need to know about kit car insurance?
For many, there’s a strong demand to be behind the wheel of something unique. This has led to the development of numerous kit car manufacturers around the world, and a huge range of kit cars are now available.
However, individuality comes at a price. It can often be a lot more complicated to insure a kit car than one that’s rolled off a production line.
Buying a kit car?
If you’re thinking of building a kit car, you should think about how you’re going to insure it first. You might find that the kit you’ve your heart set on has caused existing owners all sorts of problems as far as paperwork is concerned.
If so, you might want to steer clear. Kit car manufacturers should be able to give you some advice about insuring their models, but you should also speak to people who have already been through the process themselves. Their insight could be hugely helpful.
Insuring a kit car
An insurance company can quickly access all the information it needs to assess the value of a regular vehicle. But they don’t have that luxury with kit cars, so calculating insurance premiums can be more complicated.
No two kit cars are the same, so you’ll need to be able to give an insurer a breakdown of the car’s specifications. These include make, model, registration and engine size, as well as a clear idea of how you intend using it as this can dramatically affect your premium.
For example, is it going to be a hobby car? Or a daily driver that’s expected to cover thousands of miles every year? Are you planning to keep it garaged or do you expect to thrash it around a racetrack every weekend?
They can be a seasonal hobby for many and so temporary insurance may be a better solution for some drivers.
What level of cover do you need?
There are all sorts of car insurance policy types available. Which one is most suitable for you depends on your individual circumstances, and how you plan on using the car.
But be aware - many insurers will only pay out the so-called market value of your kit car if it were written off. This can be a difficult price to agree, especially if you’ve invested extra time or money in the project.
So it’s worth looking into agreed valuations cover, with which you’ll agree on your car’s value before paying for your insurance policy. This means you’ll know exactly how much payout you’ll get, if the worst were to happen.