Insuring a Car No Factory Built

What counts, and what doesn't

Under Vehicle Code 580, a specially constructed vehicle can be built from a kit, from new or used parts or a mix of both, or from a vehicle reported for dismantling that, once reconstructed, no longer resembles its original make. A car that has simply been repaired or restored to its original design by replacing parts is not one.

The DMV adds a useful test: a vehicle that has been modified but is still recognizable as its original make, such as a Volkswagen Beetle with modified fenders and front end, is not specially constructed. Replicas, sand rails and scratch-built hot rods are the usual examples that are.

The DMV comes before the insurer

The DMV's registration checklist for a specially constructed vehicle includes:

• an Application for Title or Registration (REG 343);
• a vehicle verification by an authorized DMV employee;
• a Statement of Construction (REG 5036);
• bills of sale or receipts for the major components: engine, frame, transmission and body;
• an electronic Vehicle Safety Systems Inspection certificate;
• a weight certificate if the vehicle is a pickup or truck, a smog certification, and the fees.

Keep copies of every receipt. The same paper that gets the car registered is what later supports its value. Once it is registered, it must stay insured: a registered vehicle with no insurance on record has its registration suspended.

What about this vehicle can matter to an insurer

California's optional rating factors include type of vehicle, vehicle performance, and vehicle characteristics such as safety devices, damageability and repairability. A kit car can sit at the edge of all of them. Rating systems are built around production vehicles, so there may be no ready classification for yours. Many kits deliver strong performance for their weight, may lack modern safety equipment such as airbags, and use fabricated or fiberglass panels that a body shop can't simply order.

Why valuation is the real question

There is no price guide for a car that exists once. If a policy settles a total loss at actual cash value, the insurer has to estimate what your particular build was worth, and that estimate can land far from what you spent. Specialty and collector policies commonly offer an agreed value instead: you and the insurer settle the figure up front, supported by receipts, photographs, a build log and sometimes an appraisal. Refresh that figure when you add significant work.

Repairs after a crash

When a production car is damaged, a shop orders parts by number. A kit car may need panels molded or fabricated, and sometimes only the kit maker or the original builder knows how a component was made. Name the shop or fabricator you would want to use, tell your insurer in advance, and keep the kit maker's details with your valuation file.

What varies by insurance company

• Whether the company writes specially constructed vehicles at all.
• Agreed value versus actual cash value, and what documentation it wants.
• Usage conditions such as mileage caps, secure storage, or a requirement that you own another car for daily driving.
• Whether anything covers the car while it is still being built and not yet registered, which is a separate conversation from insuring the finished car.

Before you start, or before you register, talk to us about how the finished car will be valued. It is far easier to agree that number now than after a loss.