When you invest in a kit or component car, it’s important to take into consideration the following:
- the time needed to assemble the kit
- the costs associated with the vehicle
- the risks associated with owning a vehicle of this nature
Insurance for kit vehicles is often a special type of coverage since the risks of owning these can be much higher than pre-assembled vehicles. Before making your choice about car insurance, make sure to do your research and shop around through multiple insurance carriers.
What is a kit or component vehicle?
Kit vehicles are a type of vehicle that has existed for many years and are a great way for car enthusiasts to create a customized vehicle that meets their needs or desires.
These kits can be a complete set of parts that will assemble into a fully functioning car, or they can be pieces that need to be combined with salvaged parts.
Kit vehicles are sometimes called component vehicles, and they can be available for purchase from many different manufacturers, both nationally and internationally.
There are also kit cars that have been partially manufactured, usually having a new body put on but having the mechanical systems assembled by an experienced manufacturer so hobbyists can pursue kit cars without the technical know-how.
It’s important to remember that kit cars are not considered hand built, as the kit has been put together for resale and then assembly by the third party.
How are the risks different for kit vehicles?
Although kit vehicles are still technically cars, they can face risks in a different way compared to a regular or fully manufactured car. Kit vehicles are usually lighter weight when compared to other cars, which means they offer less protection in the event of an accident.
These cars may have larger or more powerful engines when compared to regular cars due to the salvaged nature of the car’s parts.
These factors can make kit vehicles a target for criminals wanting to make a quick buck by stealing your car and selling the parts or the car itself. The lightweight of the body makes it easier to steal, while the value of the parts makes it a prime target.
Additionally, kit vehicles can have unique parts, which means the costs associated with replacing them can be higher than regular cars.
What should you remember about kit vehicle insurance?
If you can, finding ways to reduce your risk exposure will help offset the costs associated with covering your kit vehicle while also protecting your investment.
Insurance providers are often willing to work with policyholders that take steps to mitigate their risk in the form of premium discounts or policy limit increases.
You may want to consider carrying a deductible on your policy. While kit vehicle insurance policies are often different than regular car policies, they may still offer coverage for physical damage losses.
The deductible is the portion of any claimed loss you are responsible for, and insurance carriers may reduce your premium costs when you carry a higher deductible.
Make sure you avoid skimping on coverage limits or options when purchasing your policy.
It’s important to make sure you are adequately covered for any potential losses, and the costs associated with replacing or repairing a kit vehicle can be much higher than you anticipated.
Speak with your potential or current provider to get help assessing your risks before making your coverage decision.
Kit vehicles face many risks that are similar to traditional or fabricated cars, though some of these risks may be amplified by the kit car’s unique design and composition.
The losses that these vehicles can face may expose you to even greater amounts of loss than you expected or can handle alone, so finding car insurance coverage for your kit vehicle is essential.
When you are getting quotes for coverage from insurance carriers, make sure you understand:
- what your policy covers
- the policy limits
- the conditions and any exclusions that may apply
This information should be in your policy declarations, and you can always speak to your current or potential insurance carrier about what your policy contains.
Due to the increase risks of theft and vandalism, finding ways to secure your kit vehicle is important. Installing anti-theft devices or storing your vehicle in a secured and locked location can help reduce your risk exposure which may also help reduce your premium costs.
Speak to your insurance carrier about how these risk reduction efforts can help decrease your policy premium if they offer this.
Compare car insurance quotes for your kit vehicle today by entering your zip code below.