August 21, 2024
Northwest Classic Insurance
How to Insure Your Project Car
Building or restoring a car is an exciting project, but it comes with its own challenges, especially when it comes to insurance.
Insuring a car that’s still a work in progress is different from insuring a car that’s ready to hit the road. Here’s an easy guide to help you navigate the process.
1. Know What Coverage You Need
Your in-process car isn’t road-ready, so it needs special insurance. Look for a “project car” or “builder’s policy.” These policies are designed to protect your car while it’s being worked on.
Key Types of Coverage:
- Comprehensive Coverage: Protects against theft, fire, vandalism, and weather damage.
- Agreed Value Coverage: Ensures you and the insurer agree on the car’s value, considering your work and parts.
- Parts Coverage: Covers valuable parts, even if they’re not yet installed.
2. Keep Detailed Records
Insurance companies will want proof of what you’re doing. Keep detailed records to make sure you can show the value of your project.
What to Document:
- Photos: Take pictures of your car at every stage of the build.
- Receipts: Save receipts for all parts, tools, and labor.
- Build Log: Keep a log of the work you do, including dates and details.
3. Choose the Right Insurance Provider
Not all insurance companies are equipped to handle in-process cars. Look for a provider that specializes in project or classic cars.
Things to Consider:
- Experience: Choose an insurer that understands project cars.
- Flexibility: Make sure they allow you to update coverage as the car’s value increases.
- Customer Support: Good customer service is key to navigating this unique insurance process.
4. Assess the Value of Your Car
Determining the value of your in-process car is tricky. It’s important to update your policy as the car’s value changes during the build.
How to Do It:
- Initial Appraisal: Get an appraisal when you start the project.
- Regular Updates: As you add parts and make progress, update your insurance.
- Professional Help: For major milestones, consider a professional appraisal.
5. Adjust Coverage as You Go
As your car gets closer to being road-ready, your insurance needs will change. Make sure to adjust your coverage accordingly.
Adjustments to Consider:
- Storage Coverage: Ensure your car is protected while it’s in the garage.
- Test-Drive Coverage: Add liability coverage when you start test-driving.
- Full Coverage: Switch to standard or classic car insurance when the car is complete.
Conclusion
Insuring an in-process car doesn’t have to be complicated. By understanding the coverage you need, keeping good records, choosing the right insurer, and adjusting your policy as your project progresses, you can protect your investment. This way, you can focus on building your dream car with peace of mind.
Categories: Blog