What does Kit car insurance cover?
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What does Kit car insurance cover? Well that depends on the level of cover you choose to take out. Just as with car insurance you have the options of taking out Kit car insurance for comprehensive or third party fire and theft. Comprehensive gives the most cover and offers specialised protection particularly aimed at those putting together Kit cars.
Kit cars are cars that are bought in kit form and are then put together adding as many extra parts as you want. Therefore the value of them is not the same as an ordinary car. Kit cars that have expensive additions and parts would of course cost more to replace than a car without. Therefore Kit car insurance has to be tailored to the exact car.
With this in mind and when asking “what does Kit car insurance cover?” you have to look for a policy that would allow you to insure up to an agreed value. This will be the exact amount that your Kit car is worth and so would be paid out if the car was beyond repair and you had to start over.
Another inclusion to look out for in your policy is “betterment”. This a term that is sometimes called “new for old” and means that if a part has to be replaced on your Kit car or the car is damaged and cannot be repaired and is replaced, then you get better than what you had before.
You should also check to see if the Kit car insurance comes with a salvage retention clause. If in the event of an accident which means that the insurance company writes-off your Kit car, then you would have salvage rights. What this means is that you would be able to buy the car back from the insurance company after being written off and then use the salvageable parts when putting together a new Kit car. In some cases it might not be possible to salvage any parts. If the insurance company believes that the car is damaged to the extent that the law says it has to be destroyed, then salvage of any parts will not be possible.
If you do not take your Kit car out on the road all the time and only plan on doing so many miles per year then you should look for limited mileage. By setting a limit each year and sticking below this you are able to secure a far cheaper premium. You can also make savings while still having adequate cover if you choose to pay a higher excess. All insurance policies will have an excess, this is the amount you payout first when making a claim before the insurance company will payout.
These are just some of the things that insurance should cover. However when asking what does Kit car insurance cover? You have to check when it comes to legal expenses insurance. Usually legal expenses will not be covered in the majority of Kit car insurance and you will need to take this out as an extra. This is to cover uninsured losses that result from an accident.
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