You are about to build your car from scratch to the exact specifications you designed?
What is there not to fall in love with?
However, building a kit car from scratch is an investment of time and resources, so it’s important for you to understand what you’re doing and how you can manage everything properly in the eyes of the law, especially when it comes to insuring your vehicle so you can take it out on the road.
With this in mind, today we’re going to share with you our own complete and definitive guide to kit cars UK insurance policies, detailing everything you need to know to get the best kit car deal. Let’s go!
Table of Contents
What are kit cars?
As the title suggests, a kit car is a vehicle that is designed and built from a set of parts.
With all the parts combined, this is known as a kit. Piece it together, fix it up, and you’ll have a fully functioning car. It’s an incredibly rewarding experience, to say the least.
You can follow a pre-designed car kit which comes as a set from the manufacturer directly, or you can have a custom kit designed to whatever specifications you want, meaning you can have the car of your dreams, however it is that you want it.
How can I drive a kit car on the road?
If you want to drive your completed kit car legally on the public roads of the UK, first you need to ensure your kit car passes an IVA test, also known as an Individual Vehicle Approval test.
You can set your kit car up for an IVA test through the government’s website.
Once you’ve managed to past the IVA test, you then need to send off a built-up vehicle report (form V627/1) to the government, as well as registering the car for a license number plate.
That said, plus taxed and insured your kit car, your car will be ready to drive on the public roads.
IVA tests can only be carried out at registered sites that have been approved by the government and will cost a minimum of £199 per test.
How do I insure my kit car?
There are two types of insurance policy you can invest in related to your kit car:
- Insurance during the building construction of your car
- Insurance to cover the car once it’s built and ready for the roads.
Let’s take a detailed look at the two level of cover for kit car insurance.
Insurance during the build
Commonly known as build-up insurance, when you cover your car while you’re building it, you’re protecting the kit against the incidents that can happen in life and could damage your car or harm the building of your project.
In most cases, these insurance policies will cover you against fire damage, accidental damage, and theft.
Insurance after the build
With a kit cat insurance policy, you’ll be protected against standard hazards like fire, theft, and potential repair costs, but this will all depend on the policy you choose.
Usually, your preferred insurer will give you a value for your kit car that you will both agree on, and this is how much money you’ll receive if your car is written off.
While kit cars to depreciate, this is much slower than a traditional car, especially when you consider how many fewer miles they do. Some types of kit car will also depreciate less than others, so make sure you do your research!
Don’t worry, this valuation will take into consideration the amount of work, time, and effort you’ve put into your kit car, and it won’t just be the market value of the parts involved.
If you plan on using your kit car in racing events or competitions, you can get individual track day coverage and off-road driving experiences, but this is typically a separate purchase to road insurance and would come under optional extras or as a separate policy.
What does kit cat insurance cover?
Just to be clear, kit car insurance can differ from policy to policy and will depend on what the provider is offering at the time, but there’s some general forms of coverage that most policies will cover.
Always check what’s offered to ensure you’re getting the kit insurance policy that’s best for you.
These common forms of coverage are:
- Protection against theft
- Protection against fire damage
- Protection against damage and accidental damage
- The value of your kit car in the event of a write-off
- Salvage retention cover*
* Salvage retention cover is a policy clause that states that if your kit car is damaged or written off and classed as beyond repair, you will be given a percentage of the vehicle total market value as compensation, minus any excess charges.
Compare best kit car insurance policies
Finding an affordable and cheap kit car insurance doesn’t have to be hard work, especially when there are so many fantastic options to choose from.
Below, we’re going to explore some of the best providers who are offering their services for the best prices to insure a kit car.
|Insurance company||Policy features||Our opinion|
How much does a kit car insurance going to cost me?
To give you an average figure on how much does it cost to insure a kit car, the policy is usually 1-2% of the total value of your kit car.
But the truth is, there are so many different kinds of kit car out there, with so many makes and models to choose from, and so many varying parts and pieces of kit, that there’s no hard and fast rule to how much your kit car insurance cost is going to be.
You’ll need to get in touch with your preferred provider who will be able to talk you through the details of your individual policy and get you a quote that’s perfect for you, your policy, and your budget.
Can I add extras to my kit car insurance?
Thanks to everything a kit car can do these days, there are plenty of extras you can add onto your policy should you want or need them. Common add-on include things like:
- Breakdown cover
- Legal expense cover
- Track day cover
- Overseas (European) driving cover.
How to lower my kit cat insurance?
Finally, you may be wondering how you can lower your kit car insurance premiums when you insure a kit car. While the quotes for most premiums are already customized to suit you and your car individually, there are several things you can do to take another little chunk off your final total. These include;
- Joining a Kit Car Club. There are plenty of kit car clubs around the UK, and insurance companies are proactive in connecting with these clubs and offering their members discounted prices. Take a look to see what clubs are in your local area.
- Drive Fewer Miles. The fewer miles you do, the less mileage you need to be insured for. Many policy providers will offer discounts for drivers doing fewer miles if you agree to it. However, note that if you go over your limit, it can void your insurance policy entirely.
- Invest in Parts Only Coverage. Some providers will offer policies which are known as parts-only insurance cover. This means if you find your car is damaged, you’ll only be covered for the cost of the parts, not the labour involved in fixing it. Since you’re being covered for less, your premium will also be less!
Or, consult our guide to find out more tips to cut your insurance bill.