Insuring a Car During Restoration
Why Can a Collector Car’s Insured Value Change During Restoration?
A project vehicle may begin as a partially complete or non-running car and become significantly more valuable as restoration work progresses.
Parts & Components
Engines, transmissions, body panels, trim, interiors, glass, wheels, suspension components, and other replacement parts can add substantial value as they are purchased and installed.
Professional Labor
Bodywork, paint, fabrication, upholstery, mechanical rebuilding, electrical work, and other professional services can represent a major portion of the restoration investment.
Increasing Vehicle Value
As major restoration stages are completed, the vehicle may become worth considerably more than the amount it was insured for when the project began.
Keep a Record of What Is Going Into the Car
Restoration documentation can help support the vehicle’s condition, investment, and updated value when the insurance is reviewed.
Take photos before work begins and throughout major stages such as disassembly, bodywork, paint, engine installation, interior restoration, and final assembly.
Keep receipts for replacement parts, specialty components, custom equipment, original parts, reproduction parts, and other purchases.
Save invoices from restoration shops, mechanics, body shops, painters, upholsterers, fabricators, and other professionals working on the vehicle.
An appraisal or other valuation information may be useful as the project progresses or when major restoration stages are completed.
What Should Be Reviewed While the Restoration Is Underway?
The insurance should reflect the project’s changing value, storage location, vehicle condition, driving status, and the way the restoration is being completed.
Review the insured amount as major parts and labor are added so the policy does not remain based on the vehicle’s original project value.
Tell the insurer whether the vehicle is stored at home, at a professional restoration shop, in a secured garage, or at another location during the project.
Clarify whether the car is non-operational, occasionally test-driven, transported by trailer, or being driven to shops, shows, inspections, or other locations.
Ask how expensive parts and components waiting to be installed are treated, especially when they are stored separately from the vehicle.
Is Your Classic Car Currently Being Restored?
Best Formula Insurance can help classic and collector-car owners review restoration projects, increasing vehicle values, Agreed Value coverage, storage, parts, usage, physical damage, and other specialty auto insurance considerations.