Coverage for cars under restoration or modification

Discover why restoration coverage is essential to protecting your classic project from the very first screw.

Since I started getting fully involved in the world of classic car restoration, I knew it wasn't just any hobby.

Restoring a car isn't just a technical process; it's an emotional, almost spiritual experience.

But, as I learned the hard way, investing time, money, and heart isn't enough.

Adequate protection must also be considered.

That's why today I want to talk to you about something that many overlook: the coverage for cars under restoration.

Why do you need special insurance coverage during restoration?

When I bought my first car to restore (a 1969 Chevrolet Camaro), I was so excited that I took it straight to the shop without thinking about making sure it was protected.

Serious mistake.

A couple of weeks later, a severe storm hit the garage where the car was.

There were leaks, and several new parts I had already installed were ruined.

There I realized that the traditional insurance I had did not cover cars under restoration.

I learned that the traditional insurance coverage often does not apply to cars that are not roadworthy.

They assume that if it's not operational, there's no risk, when the reality is quite the opposite.

What does coverage for cars under restoration include?

A good one coverage for cars under restoration You must be flexible and understand that your car is a work in progress.

Some things I learned that are essential:

Fire coverage: During the restoration, there is welding, electrical work, etc. There is a risk of fire.

Protection against theft of partsSome classic pieces are extremely valuable. Workshops don't always have adequate security.

Coverage while the car is in transitIf you're transporting your car from one place to another, you need to be covered during the journey.

Declared or progressive valueSome insurers allow you to update the car's value as the restoration progresses, which makes a lot of sense.

Damage to the workshopDon't let it happen to you like it did to me. Make sure your insurance covers damage while the car is in someone else's business.

My experience hiring good coverage

After the disaster with the Camaro, I decided to do things right with my next project: a Volkswagen Beetle from 1972.

Before starting the restoration, I took the time to look for an insurance company that offered a good insurance coverage for cars under restoration.

I opted for a policy that:

• It allowed me to declare the estimated value of the car at the end of the restoration..
• It covered trailer transport.
• It protected all the new parts that were being added.

And thank goodness. A few months later, there was a small fire in the paint department of the shop.

Although my car only suffered minor damage, the insurance company responded quickly and covered the repairs without any complications.

What types of modified cars require special coverage?

Although we talk a lot about restoration, the coverage for modified cars also deserves attention.

Nowadays many enthusiasts customize their classic cars with:

• Modern sound systems.
• Sporty rims.
• Air suspension.
• Custom paintings.
• Electric motor conversions.

All that modifies the original value of the car. Therefore, it is crucial that insurance takes into account every change.

Many traditional insurers do not cover modified cars, or reduce coverage if the changes are not declared.

A good advice is Document each modification with photos and invoices, and notify the insurer.

This way there are no surprises if you need to make a claim.

Common mistakes when insuring a car under restoration

These are the mistakes I saw (and made) when searching for adequate coverage:

❌ Thinking that the workshop insurance covers your carThis isn't always the case. Sometimes, commercial property insurance only covers structural damage or has very low limits.

❌ Not reading the fine printSome policies have exclusions that could leave you without coverage when you need it most.

❌ Do not update the car's value during restorationIf you declare a fixed value from the start, you could end up with a low price if the car breaks down when it's already worth much more.

❌ Not asking if they cover events and exhibitionsSome projects end up at fairs, exhibitions, or rallies. Not all policies cover these scenarios.

Tips for choosing good insurance coverage

🛠 Consult with specialized insurers in classic or collector cars.

🛠 Compare multiple offersDon't settle for the first option. Sometimes the cheapest option isn't the most complete.

🛠 Verify that coverage extends to all phases: storage, transportation, repairs and displays.

🛠 Update the policy frequently, especially if the project is moving quickly or you are making major improvements.

🛠 Ask them to include tools, spare parts and accessories. Sometimes they are as expensive as or more expensive than the car itself.

Insure your passion, not just your car

Investing in a restored or modified classic car is an exciting adventure.

But it can also be risky if you don't have the proper protection.

The coverage for cars under restoration It is not a luxury, it is a necessity.

It's the peace of mind of knowing that, no matter what happens, your project is covered.

My final piece of advice is simple: take the time to choose the right insurance.

Protect your investment, your effort and your dream.

And if you want to read more about classic car restoration, purchase of original parts either exhibition events, I invite you to explore other articles on this blog.

See you on the next route!

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