Restoration and Project Car Insurance

By Jon Merwin, Founder and CEO

A restoration can take months or years, and the car may spend that time in pieces: the body at a paint shop, the engine at a machine shop, the chrome at a plater and a garage full of boxed parts at home. All the while, the money and hours you’re putting in keep raising the car’s value. Standard insurance isn’t built for any of that. This guide explains how to insure a car through a restoration. For collector coverage in general, see our classic and collector car insurance guide.

Project car or finished car?

Insurers treat a car under restoration differently from a finished, road-ready car. A project car usually isn’t being driven, may not be registered and may be spread across several locations. Some collector insurers can cover it for risks like fire and theft while it’s not drivable, then move it to full collector coverage when it’s done. Tell us honestly where the build stands, and we’ll confirm eligibility for your vehicle.

Insuring the value as it grows

A car that starts as a rough shell can be worth many times more when it’s finished. If the agreed value stays where it started, a loss late in the project could leave you far short. Some policies can step the value up as the project progresses. Either way, call us at major milestones:

• Bodywork and rust repair finished
• Paint finished
• Engine and drivetrain rebuilt
• Interior and trim installed
• The car is complete and ready for the road

Each time, send photos and receipts. Our guide to agreed value car insurance explains how to support the number.

Parts: in your garage, at the shop and in transit

Restorations create a lot of loose, valuable, hard-to-replace parts. Some policies cover spare and stored parts, but limits vary, and parts at a vendor may be handled differently from parts at home. Protect them by:

• Keeping an inventory, with photos, part numbers and receipts
• Storing parts in a locked, enclosed building
• Asking each vendor, such as a machine shop, plater or upholsterer, how it insures customer property
• Telling us about high-value parts, such as a numbers-matching engine stored separately
• Checking whether your homeowners policy covers tools and shop equipment

When the car is at a restoration shop

Many restoration shops carry garagekeepers coverage for customer cars in their care, but limits and terms vary, and a shop’s limit may not match your car’s value. Before you drop off the car, ask the shop for proof of its coverage, take dated photos of the car, and get a written estimate. Keep your own policy in place while the car is away.

Moving a project car

Project cars usually travel on a trailer or flatbed between home and shops. Ask how your policy covers the car in transit, and ask any transporter for its cargo insurance certificate. Our guide to car shows and trailering covers trailers and transporters in more detail.

Barn finds and long-term projects

A car just pulled from a barn may sit for a long time before work starts. Some insurers will cover it for limited risks while it’s stored and evaluated. Store it in a locked, enclosed building, and keep comprehensive protection in mind through the winter; see collector car winter storage. If the build will change the car from original, read antique vs. classic car insurance and modified car insurance to see how insurers may classify it.

The first drive after a restoration

Before the finished car goes on the road, call us. The policy may need to move from project coverage to full collector coverage, the agreed value should reflect the finished car, and you’ll want liability coverage that lines up with your daily cars and umbrella. Register the car as your state requires before driving it.

How we help

We shop collector car coverage with carriers including Hagerty, J.C. Taylor, Liberty Mutual, Cincinnati and American Modern, and we compare how each handles cars under restoration, stored parts and value changes. We’re a family-owned independent agency founded in 2005, with access to 40+ carriers, and we don’t charge any fees. We are New Hampshire’s highest-rated agency on Google, with 1,000+ Google reviews and over 2,000 testimonials.

We work with collectors in New Hampshire, Massachusetts, Connecticut and Maine.

Frequently asked questions

Can I insure a car that’s taken apart for restoration?

Often, yes. Some collector insurers can cover a car under restoration, usually for risks like fire and theft while it’s not drivable, with a value that’s updated as work is done. Coverage for a project car works differently from coverage for a finished car, so tell us where the build stands. We’ll confirm eligibility for your vehicle.

Are parts covered while they’re off the car?

Some policies cover spare and stored parts, but limits vary, and parts at a shop, a plater or an upholsterer may be handled differently from parts in your own garage. Keep an inventory with photos and receipts, and ask us how your parts are covered.

Who covers my car while it’s at a restoration shop?

Often both the shop and you. Many shops carry garagekeepers coverage for customer cars in their care, but limits and terms vary. Ask the shop for proof of its coverage, and keep your own policy in place.

How does the agreed value change during a restoration?

As work is completed, the car’s value usually rises. Some policies can step the value up as the project progresses. Call us at major milestones, such as finished bodywork, paint or a rebuilt drivetrain, so the agreed value keeps pace.

What should I do when the restoration is finished?

Call us before the first drive. The policy may need to change from project coverage to full collector coverage, the agreed value should be updated, and you’ll want liability coverage in place before the car goes on the road.

Can I insure a barn find I haven’t started on yet?

Sometimes. A car that has just come out of a barn may be insured for limited risks while it’s stored and evaluated. Tell us its condition, where it’s kept and your plans for it.

What our clients say

From our client surveys. Comments are lightly edited for typos only.

“

Jon is super helpful and amazingly communicative. He responds fast with well thought out answers making the process of getting insurance for my home and car super simple.

“

Very informative, responsive, and helpful with answering any questions we had. Helped us get the best deal and coverage, explained the differences between coverage options, and let us choose what worked best for us. Highly recommend!

“

Excellent guidance on insurance options and fantastic quoting and onboarding experience. We trust their recommendations and feel that we have best coverage for peace of mind at best possible cost.

Read more client testimonials

Sources

• Insurance Information Institute: Insuring your classic car