Kit car cover - what’s so different?
You’ve probably bought motor insurance for a range of production cars in the past, so what makes arranging kit car cover so very different? Of course, there are similarities, but assembling a car from a kit produces a vehicle that is very much a one-off (part of its attraction, of course), and it’s this that makes arranging insurance cover for it somewhat different.
The similarities …
Cover for your kit car shares many of the features of regular motor insurance:
- Whether it’s a kit car or mass-production model, there is a legal requirement for the driver to hold a minimum level of third party insurance if it is to be driven on public roads. The law’s there to ensure protection for any third party (other road users or members of the public) who are injured or who have their property damaged as a result of your driving;
- It’s not only the risks to other people that motor insurance might cover, of course, but loss or accidental damage to the car itself. It is common to extend third party cover to include the risk of fire, for example, whilst comprehensive insurance offers a potentially very wide range of compensation for loss or damage to the vehicle itself and other financial losses you suffer as a result (the disruption of your intended journey, for example);
- Most motor insurance policies incorporate a so-called “compulsory excess” – the minimum amount of any claim that must be borne by the policy holder in the event of a claim – and a “voluntary excess”, which is an additional amount that the policy holder agrees to bear in the event of a claim. Sharing the insured risks in this way, represents a way for the policy holder to reduce the cost of insurance premiums;
- A further common feature of motor insurance in general is the way in which premiums take into account the insurer’s estimate of the likely cost of future claims, based on such factors as the characteristics of the vehicle, the level of cover, the policy holder’s age, sex and driving history and the intended annual mileage.
… and the differences
There is one fundamental difference that insurers need to take into account when arranging kit car cover as opposed to insurance for mass-produced models. This relates, of course, to the kit car’s unique characteristics. The simple description of the vehicle as a “kit car” gives the insurer precious little information on which to base projections of the cost of likely claims. Because of this, arranging the insurance is likely to be marked by the following differences:
- The insurer needs to know that the vehicle at least meets basic roadworthiness and safety checks. Typically – and depending on the source of the components used in building the kit car – this takes the form of a certificate issued by the Department of Transport in order to register and license a kit car. Such certification comes in the form of either Individual Vehicle Approval, Single Vehicle Approval or Enhanced Vehicle Approval (depending on the sourcing of the car’s components);
- Typically, insurers of kit cars also expect policy holder to share a greater proportion of the risks of loss or damage by agreeing to a larger compulsory excess than might otherwise apply to a more conventional vehicle. If you want to reduce the cost of your premiums, however, it is worth considering opting for an additional voluntary excess;
- As with other forms of motor insurance, kit car cover is likely to be more readily obtainable – and cheaper – the cleaner your driving record. The nature of your kit car and the way you use it, might also present opportunities for seeking lower premiums on the basis of relatively restricted annual mileage.
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