Why are Kit Cars Expensive to Insure?

Kit cars for most are a fun past time, something to
tinker with on your holidays and weekends, you may even be just starting
to look at models and now is as good a time as any to start learning a
few of the background pieces of information. Insurance is something
you’re going to need for your kit car be it for a show piece, a racing
model or just something for you to drive around in on a Sunday
afternoon. So lets take a look at some of the information about insuring your kit car and why they may be a little more expensive to insure.

To begin with you will need to make sure that your kit car is road
legal, in order for this to happen (your second bit of expense after the
building of your car!) your kit car will need to pass an IVA
(Individual Vehicle Approval) test which can cost around £199. These
tests are like the MOT in that they can only be carried out at approved
sites by inspectors from the Vehicle and Operator Services Agency, then
its just three years till a normal MOT. Your car will also need taz
discs in order to be road worthy.

Kit cars aren’t your typical dealership show room type car. They have
modifications, time, effort and parts are constantly spent on them and
as such most will see an increase in their value over time rather than a
decrease like a standard car would. This can mean that in order to gain
the full coverage for your car should an accident or theft happen you
may need to pay out a hefty sum each month. On the plus side this will
help you out should your car ever be stolen, though we all know
something that you’ve lavished time on like a kit car won;t be so easily
replaced.

Due to the fact that kit cars tend to be one of a kind, insurance
companies know that if something happens to them the costs of replacing
the parts, kit or other modifications that have been made may be huge.
Due to this the price of your insurance can go up, almost a comfort as
it means you will be reimbursed for the amount your kit car was at the
end, not at the beginning.

If you show and race your car at track days you may see the price in
your policy go up a considerable amount purely because of the activities
you will be involved in. Every track activity holds some element of
risk and though you may have a spotless no claims bonus the same cannot
be said for everyone else attending the track day, though you will see
your police price rise as a result it is always better to be safe than
sorry.

So you can see some of the reasons why kit cars are expensive to insure, but totally worth it right?