Kit car insurance

Building a kit car from scratch is a real labour of love. But before you can take your prized possession out on the road, you’ll need to register, tax and insure it.

Building a kit car from scratch is a real labour of love. But before you can take your prized possession out on the road, you’ll need to register, tax and insure it.

Daniel Hutson
From the Motor team
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Posted 3 MARCH 2020

Do I need specialist kit car insurance?

It’s very unlikely that standard car insurance will cover a kit car - so yes, you’ll need to find specialist cover.

How do I register a kit car?

Before you can legally drive your kit car on public roads, you’ll need to register it with the DVLA.

To do this, your kit car will need to pass an Individual Vehicle Approval (IVA) test. This involves an inspection by the Driver and Vehicle Standards Agency (DVSA), for which you’ll be charged a fee.

After your kit car has passed the IVA test, you’ll need to complete the Built up vehicle inspection report (form V627/1) which you can download from the DVLA website.

You can then register for a number plate. Once road tax has been paid and the right insurance is in place, you can legally take your new car out for a spin.

What does kit car insurance cover?

Kit car insurance will offer many of the benefits that a standard car insurance policy does, such as theft, fire, accidental and third-party damage.

However, good kit car cover might also include:

  • Spare parts protection with a higher cover limit.
  • Build up cover. This covers your car and parts during construction.
  • Salvage retention. Allows you to buy back your parts if your car is written off.
  • Agreed value. If your car is written off or stolen, some policies will pay out an agreed value, unlike standard car insurance which typically pays the market value.

When comparing specialist kit car policies, you should also consider:

  • Age restrictions – some policies are only available to drivers over the age of 21.
  • If you want to race your kit car, you may need to pay extra for optional track days cover.

Cover will vary between providers, so always check the policy terms and conditions before you buy.

Is kit car insurance cheap?

Specialist kit car insurance isn’t like a standard car insurance policy. Considering the unique nature of each vehicle and the added benefits that specialist cover provides, it will most likely be more expensive than a policy for a standard car.

However, when you consider the time, money and effort that goes into constructing a kit car, paying extra for the right level of cover could be worth it.

How can I cut the cost of my kit car insurance?

As no two kit cars are the same, it’s difficult to calculate exactly how much your insurance premiums will be. However, there are a few ways you may be able to cut the cost of your kit car insurance:

  • Join a dedicated kit car club – members often benefit from discounts with insurance providers.
  • Keep your annual mileage low – it’s unlikely you’ll be driving your kit car every day. Typically, the lower your agreed annual mileage limit is, the lower your premium will be.
  • Keep your car secure – parking off-street in a safe place overnight could help reduce the cost of your premium. Some insurance providers may also offer a discount for industry-approved immobilisers and alarms.

If you need to work on your kit car and decide to take it off the road for a period of time, you can avoid paying tax and insurance on it by applying for a Statutory Off Road Notification.

Just remember, you’ll need to tax and insure it before driving it on public roads again.

You can also shop around to find a good range of deals from different insurance providers, then choose the one that best suits your needs and budget.

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