Kit car agreed value insurance UK 2026

What agreed value means for a kit car — and why market value fails

A kit car has no book value. It is a one-off you assembled from a donor drivetrain, a bought chassis or bodyshell and hundreds of hours of your own labour, so a standard insurer’s “market value” settlement — whatever a loss adjuster decides a comparable car is worth on the day — can fall thousands below what you actually spent. Agreed value fixes that: before cover starts, you and the insurer agree a set figure, and if the car is stolen or written off that exact sum is paid without haggling, depreciation or a market comparison. Most UK kit car specialists — Adrian Flux, Footman James, Peter Best, Heritage, Brentacre and Graham Sykes among them — include agreed value free once you send photographs and evidence of the build. This is the sub-topic our wider kit car insurance cost guide for 2026 flags as the single most important choice a builder makes at quote stage.

To set the figure a broker will ask for build receipts (chassis, engine, parts), photos of the finished car and interior, sometimes an owners’-club valuation or an independent appraisal (Hagerty and marque-club valuers are widely accepted), and the IVA/registration paperwork. The value is normally reviewed each year at renewal so it keeps pace with a rising classic-and-kit market. Get it wrong at the bottom and you are under-insured; inflate it and the insurer will simply ask for proof before agreeing.

How to set your agreed value — and the cover choices that go with it

Getting an accurate agreed value in place is a short, evidence-led process, and it dovetails with a handful of policy decisions unique to home-built cars:

1. Document the build first. Keep every receipt — chassis or bodyshell, engine and gearbox, brakes, wheels, paint and trim. A folder of costed parts plus dated photos of the finished car is what a broker uses to sign off the value. Loose “I reckon it’s worth” figures get queried.
2. Add an independent valuation for higher-value cars. For a Cobra, GT40, Ultima or a show-standard build, a marque-club or specialist appraisal (Hagerty and owners’-club valuers are widely accepted) removes any dispute and can support a higher agreed figure.
3. Pick your cover level. Comprehensive is standard and is what agreed value attaches to; third-party-only exists but is rarely cheaper on a specialist scheme and leaves your own build unprotected. Laid-up (fire & theft while off the road) cover is useful mid-build or over winter.
4. Choose a realistic mileage cap. Limited-mileage terms of 1,500–5,000 miles a year are the single biggest lever on a kit car premium. Commit only to what you drive; breaching the cap can prejudice a claim.
5. Declare every modification. On a kit car the “modifications” are the car, but engine swaps, forced induction, uprated brakes and roll cages must all be listed. Specialists rate them sympathetically; hiding them voids cover.
6. Review the value each renewal. Kit and classic values have risen; a value agreed three years ago may now under-insure you. Refresh photos and the figure annually so a total-loss pay-out still rebuilds the car.

One more setup point unique to kit cars: the car must be road-legal first. A newly built kit normally needs an Individual Vehicle Approval (IVA) inspection by the DVSA, then DVLA registration (an age-related or Q-plate) before you can tax and insure it. Insurers will want that paperwork alongside your build evidence. For the full premium picture — donor choice, security discounts and multi-vehicle savings — see our kit car insurance cost guide.