Getting the right insurance for your kit car
Kit cars are unique as they require dedication, time and money to construct cars from scratch. How can you ensure that you have the appropriate insurance to protect your cherished possession?
Kit cars are special as you cannot drive them out of car showrooms; you put them together in your garage. Kit cars also need specialist cover, specific to requirements. Should you have modified your vehicle, you are likely to pay a bit more for kit car insurance.
The law and kit cars
You have to pas an Individual Vehicle Approval (IVA) test to drive a kit car legally on the road; it costs around £199. Inspectors from the Vehicle and Operator Services Agency undertake tests to check that your car is roadworthy. Should your kit car pass its IVA it is not likely to need an MOT for a further three years. You do need a valid tax disc or statutory off road notification for your kit car.
What is covered by kit car insurance?
Kit car insurance covers all the normal risks to your car, like theft, fire and damage due to a road accident. Moreover, a specialist policy can incorporate build up cover, which insures your kit car when its parts arrive. Certain kit car insurance companies provide protection for component parts damaged or lost in transit. Kit car parts can be expensive; therefore, building up cover can prove vital.
A specialist insurer normally pays out an ‘agreed value’ should the kit car be written off or stolen; whereas, standard insurance policies usually pay out the market value. An agreed value is vital as it difficult to assign a price on a kit car, particularly if there have been modifications made. Unlike the value of many cars which depreciates over time, the value of kit cars can increase. Ensure you agree a value of the car with the insurer at the beginning, to make sure that the policy pays out the full value of the car should there be a claim made.
Should the worst happen and your car be written off, you may wish to salvage the parts, particularly if they are expensive. Cover for salvage retention cover means you can buy back the wreckage and utilise the salvageable parts to construct a new kit car. If the wreckage is very serious, it could be illegal to salvage parts due to potential safety hazards.
Is it possible to add extras to my kit car cover?
If you need a bit more than basic cover for your kit car, you can usually add extras, even though you are going to have to pay an additional premium. Certain breakdown policies exclude kit cars, therefore, it is vital to check the details should you want emergency assistance. It could prove to be a good idea to add legal expenses to your kit car cover for any potential court costs.
Should you be a racing fan, use your kit car for weddings and special occasions or take your kit car overseas you will need extra cover.
The majority of kit car insurance policies exclude drivers aged under 21. Should you be a younger driver, you are most likely to pay much more on your insurance, given that you pinpoint an insurer wanting to take the risk.
How do I get cheap kit car cover?
If your kit car is not on the road daily, you may be able to agree a lower mileage limit with your insurance company in exchange for a lower premium. You will invalidate your policy if you breach this limit.
The compulsory excess on kit car insurance is £200. Should you agree to a higher voluntary excess, you normally get rewarded with a lower premium.
Should you have constructed your car from scratch, you may be totally content to repair the vehicle should it sustain any damage. So, you may wish to consider ‘parts only’ insurance. This policy pays out for parts only, not for any labour, saving you around 30% on the premium.