Kit Car Insurance: A Guide
Petrol-heads the world over dream of driving a motor they built with their own hands. Thanks to modern manufacturing techniques and the increasing availability of products, more individuals are building their own cars than ever before. These cars are known as kit cars, as they are constructed from a kit by the owner. However, kit cars throw some kinks in the usual insurance pricing process, and the steps needed to insure a kit car can be complicated. This guide will help current and aspiring kit car motorists understand the information they need to keep their hand-built car road legal and insured.
Step 1: Research
The first thing that you should do when thinking about buying a kit car is to research what other owners have said about the process of insuring it. Some kit cars are easier and cheaper to insure than others, and current owners will be able to provide feedback as to their experience in that regard. User feedback is the best way to get information on the insurance process for a particular model because the car company itself has an incentive to make the process seem as easy as possible so that they can sell more of their product.
This isn’t to say that kit car manufacturers won’t have any information. Many manufacturers have guides that have information to help individuals obtain insurance. Still other manufacturers have links to insurance companies that have verified that they will insure that particular motor. This shows why it is important to perform due diligence before purchasing your kit.
Step 2: The Assay
The next step in the insurance process for kit cars is that the insurance company needs to determine its value. The value of a vehicle is one of the primary factors in determining the cost to insure it. This process is more complicated than for a factory car because the kit car value is much more subjective, and no two are worth the same amount.
Additionally, the insurance company will take into account how you plan to use the car. A hobby car may not be as expensive to cover as a car that you will use for your daily commute and shopping. However, many kit car enthusiasts also enjoy sending their creation around the track, and track use can also be complicated for insurance companies to properly assay. Therefore, don’t be surprised if you get wildly different offers from different insurance companies when it comes to your kit car.
Step 3: Cover Level and Valuations Cover
There is no consensus from kit car drivers what the best insurance cover level is, and the answer to this question is largely dependent on how you intend to use the car.
Another issue arises from the difficulty in valuation of the kit car. There isn’t an established market value, and so the insurance company may not be willing to pay out the amount you feel entitled to should the worst happen. Many kit car fans advocate for avoiding full comp cover for this reason. However, full comp cover can work if a price and valuation is agreed ahead of time. This can help avoid costly and time consuming debates with the insurance company should you have to file a claim. This type of policy is also known as valuations cover, and you can use it to create predictability regarding the value of your motor, saving time and money later on.
Step 4: Stay Current
Sometimes the situation that a kit car driver is hoping for isn’t the one that happens. If you told the insurance company you will be taking the car to the track 4 times a month, but then only get out every other month, you should amend your policy to reflect that fact. This is true for anything that decreases the risk that the insurance company will pay out. In the same line of thinking, it is important to let your insurance company know if you are using your kit car for more than you originally intended. Failure to do so can result in a claim being invalidated, which can put you out several thousand pounds.
If you’re thinking about getting a kit car but aren’t sure you’ll be able to enjoy it because of insurance complications, follow the steps in this guide and you may find yourself pleasantly surprised with the results you get.