Insurance for Car Enthusiasts: Do You Need a Policy for Your Project Car?

For car enthusiasts, a project car is more than just a hobby—it’s a long-term investment. Whether you're rebuilding a classic muscle car, restoring a vintage European sports car, or modifying a JDM import, your insurance needs are very different from a standard daily driver. Here’s what you need to know about insuring a project car the right way.

1. Does Regular Auto Insurance Cover Project Cars?

If your car isn’t driven daily, you might assume it doesn’t need insurance—but that’s a big risk. Most auto insurance policies only cover actively driven vehicles, meaning an incomplete restoration project may not be covered for theft, fire, or damage while in storage.
👉 Solution: Consider a specialty car insurance policy that protects vehicles under restoration, even if they’re not registered for the road yet.

2. How Do You Protect a Car in Storage?

Many project cars spend months or years in garages, barns, or workshops before hitting the road. Standard auto insurance won’t cover damage from:
✔ Garage fires
✔ Water leaks or flooding
✔ Theft or vandalism
👉 Solution: A "Comprehensive-Only" policy or a standalone garage insurance rider can protect your car while it’s off the road.

3. What If I Do the Repairs Myself?

If you're working on your car, accidents happen—dropped tools, electrical fires, or even frame damage from improper jacking can ruin your build. Standard auto policies don’t cover damages that happen during DIY repairs.
👉 Solution: Look for a builder’s risk auto insurance policy that protects against accidental damage during restoration.

4. Should You Insure the Car for Its Current Value or Finished Value?

Most project cars increase in value as they’re restored—but if you only insure it at purchase price, you might not get full coverage for parts and labor already invested.
✔ Choose "Agreed Value Coverage" to set a predetermined payout based on the car’s appraised worth.
✔ Update your policy as you add modifications or upgrades.

5. What If My Project Car is Stolen or Destroyed?

​Imagine spending years rebuilding a classic Mustang or Porsche, only to have it stolen or totaled in a garage fire—without the right insurance. Most policies don’t automatically include:
✔ Parts coverage for rare or hard-to-find components
✔ Loss of labor investment
✔ Theft protection for unregistered vehicles
👉 Solution: Get a modified car insurance policy that accounts for custom parts, aftermarket mods, and specialty restorations.

Conclusion:Your project car is worth more than just the sum of its parts. Whether you’re restoring a classic or modifying a tuner car, VIP Insurance Professionals can help you find the right coverage so your hard work doesn’t go to waste. Contact us today!