Car Restoration Projects and Insurance: How to Protect Your Work
by Erin Anderson
Whether you’re slowly restoring a vintage pickup in your garage or bringing a classic muscle car back to life piece by piece, a restoration project is a serious investment — in time, money, and passion. But while you’re focused on rust repair and sourcing the right parts, it’s easy to overlook a major piece of the puzzle: insurance.
If something happens to your car mid-project — a fire, theft, or even an accident during a test drive — you could lose more than just the vehicle. You could lose everything you’ve put into it.
Here’s how to make sure your restoration project is protected from day one.
Standard Policies Might Not Cover a Car in Restoration
Most standard auto policies are built for daily drivers — not for cars on jack stands with no engine or interior. If your restoration project isn’t running (or isn’t street legal), your regular insurance may not apply at all, or may offer only limited protection.
What’s usually not covered under a basic auto policy:
- Damage during storage or transport
- Theft of parts or tools
- Fire, flood, or vandalism in your garage
- The increased value of the vehicle as you restore it
That means if your unfinished project gets damaged or stolen, your payout could be minimal — or denied completely.
Consider Restoration-Specific or Project Car Coverage
Some insurers offer policies specifically designed for classic or project cars. These are often called:
- Restoration coverage
- Collector car insurance
- Project car policies
These plans often include:
- “In-progress” value protection — coverage that grows as your restoration progresses
- Agreed value coverage — where you and the insurer agree upfront on the car’s value
- Parts and tools protection — coverage for rare or high-value components
- Flexible usage limits — like coverage during test drives or transit to shows
Bonus: These policies are often cheaper than standard car insurance, since the vehicle isn’t being driven daily.
Keep Records — They’re Worth More Than You Think
Insurers (and appraisers) love documentation — and when it comes to restorations, it can make or break a claim.
What to track:
- Before and after photos
- Receipts for parts, tools, and labor
- Maintenance logs or build journals
- Appraisals at different stages of the project
If the unexpected happens, these records can help prove the true value of your project — not just what it looked like on paper.
Don’t Wait Until It’s “Done” to Insure It
One of the most common mistakes? Waiting until the car is running to think about insurance.
Here’s the thing: your project has value at every stage — even if it’s just a bare shell or a frame with a drivetrain. If it’s stolen or damaged before you finish it, standard coverage won’t reflect the time and money you’ve already put in.
If your car means enough to restore, it means enough to protect — even if it doesn’t move yet.
The Bottom Line
Restoring a car is more than a project — it’s a passion. But all that effort can be lost in an instant if you don’t have the right coverage in place.
Whether your restoration is already underway or still in the planning phase, make sure your insurance is keeping up with your progress. The right policy can help you protect the value of your work at every stage — and give you peace of mind while you bring your vision to life.