Can I insure a classic car I’m restoring?
Restoring a classic car is a labour of love. Whether you’re undertaking a full nut-and-bolt rebuild, or gradually bringing a long-stored vehicle back to life, a restoration project can represent a significant investment of time and money.
A common question among enthusiasts is whether a classic car can be insured while it’s undergoing restoration, particularly if it’s not roadworthy or currently being driven. The short answer is yes, but the type of cover you need may differ from a standard classic car insurance policy.
In this guide, we’ll explain how insuring a classic car under restoration works, what risks need to be covered, and how specialist insurers like Heritage approach vehicles at different stages of a rebuild.
Can you insure a classic car that isn’t roadworthy?
Classic car insurance is designed to reflect how classic vehicles are actually used, and this can include periods when a car is off the road. If your classic car is not currently roadworthy, whether because the engine is removed, the car is dismantled waiting for a specialist part, or major bodywork is underway, you can still insure it. In these cases, cover is typically provided on a laid-up basis.
Laid-up insurance is intended for vehicles that are not being driven and therefore do not require the usual road risks cover. Instead, it focuses on protecting the car against risks such as:
- Fire
- Theft
- Accidental damage
- Malicious damage
Specialist insurers like our team at Heritage recognise that restoration vehicles are usually stored securely and carefully, which allows cover and costing to be tailored to this lower-risk usage.
Why insurance is important during a restoration
Even when a classic car isn’t being driven, it can still be vulnerable to loss or damage. Even during a period of restoration, a classic vehicle can be a highly valuable asset, likely even more valuable once the restoration work is complete.
Parts removed during restoration, newly fitted components, and partially completed work can all add value to the vehicle over time. Without insurance, these investments would be unprotected. Insurance during restoration can help protect against:
- Fire or flood damage in a garage or workshop
- Theft of the vehicle or valuable components
- Accidental damage during storage or transport
- Vandalism to parts or the vehicle itself
At Heritage, we understand that restoration projects evolve, which is why our policies can often be adapted as the condition and value of the car changes.
How restoration status affects insurance cover
The stage of restoration your classic car is in will influence the type of insurance available.
Early-stage or non-running projects
For vehicles at an early stage, and not yet roadworthy, laid-up cover is often the most appropriate option. This provides peace of mind while major work is carried out and before the car is ready to return to the road. Because the vehicle isn’t being driven, premiums are typically lower than full road cover, reflecting the reduced risk exposure.
Mid-restoration vehicles
As restoration progresses, the car’s value may increase significantly. At this stage, insurers may recommend reviewing your cover to ensure the sum insured accurately reflects the car’s current condition and the cost of parts and labour invested so far.
Some policies can be adjusted mid-term to reflect these changes, helping to ensure your project remains adequately protected. At Heritage, we offer free agreed value as part of our policies.
Near-complete or road-ready classics
Once a restored classic becomes roadworthy, insurance can be seamlessly upgraded to a full classic car insurance policy. This will likely include additional costs to reflect the new road risks cover elements, as well as agreed value, and limited mileage terms suited to your intended use.
Heritage works with owners to provide a smooth transition from laid-up cover to road-ready classic car insurance to ensure you have exactly the right cover at every stage of the process.
Storage, security and restoration insurance
Where and how your classic car is stored during restoration plays a key role in insurance considerations. Insurers will often look at:
- Whether the car is kept in a locked garage or workshop
- The level of security in place, such as alarms or immobilisers
- Whether restoration work is carried out at home or by a specialist
Secure storage can help reduce risk and may positively influence both availability of cover and premium levels. Insurers usually take a practical approach to security, recognising that many restoration projects are kept off the road and well protected.
Agreed value and restoration projects
One challenge with insuring a car under restoration is determining its value. Market value may not accurately reflect a partially restored vehicle, particularly where specialist work or rare components are involved, but this is not an uncommon situation.
In most cases, insurers may offer an agreed value once the vehicle reaches a suitable stage, ensuring clarity about what the car is worth in the event of a total loss. As restoration progresses, it’s important to keep insurers informed so cover can evolve alongside the vehicle.
Can I insure a classic car I’m restoring? FAQs
Yes. Classic cars under restoration can usually be insured on a laid-up basis, covering risks such as fire, theft and accidental damage while the vehicle is not being driven.
Yes. Even when stored, classic cars can still be damaged or stolen. Insurance helps protect the value of the vehicle and any restoration work carried out.
Often yes. Because laid-up vehicles are not exposed to road risks, premiums are usually lower than for fully road-going classic cars.
In most cases, yes. As your car’s condition and value change, insurers like Heritage can review and adjust your cover accordingly.
Once your restored classic is roadworthy and legally able to be driven, laid-up cover can usually be upgraded to a full classic car insurance policy.
Many classic car owners carry out restoration work themselves, rather than using professional workshops. This is generally accepted, provided the insurer is aware and the vehicle is not being driven. Insurance typically covers the vehicle itself rather than work, meaning accidental damage to the car during storage may be covered, but faults arising from restoration work may not be.
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