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What kind of insurance will I need if I spend a considerable amount restoring a classic car?

I am planning to have a full restoration carried out on my vehicle and will spend a huge amount of money in the process. How will this impact on my insurance cover? Once the restoration is completed my vehicle might as well be a brand new car. What special insurance cover options are their ?

Asked on 6 September 2018 by JJ FINNEGAN

Answered by Tim Kelly
There are two you need to look at, One is a agreed market value policy. I often do engineers reports for these to evidence the vehicle to assist insurers in being able to underwrite the risk. The thing with this is that it still may not cover the investment you have put in the vehicle. I recently did a report for a Morris Oxford 16/6, It is quite simply the best one in the world now. The normal logic an insurer would want to apply is the agreed market value above, Realistically for this vehicle it would be in the region of £80k, the owner of this vehicle spent three times that amount on the restoration. This created a huge issue, as he stood to lose over £150k should anything happen to it.

The type of policy required to cover this type of risk is called a "re-instatement" policy. This covers the financial investment, rather than the vehicle itself. You will not get it through the internet, or direct with Insurers, you will need to speak with a very good broker who deals in this area.

For high networth clients that I have worked with, I use Hiscox insurance brokers. I have also used www.laurieross.com/ insurance brokers and found them to be excellent.
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