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Full coverage: getting your insurance cover sorted

21 December 2018



Unless you’ve worked for an insurance company, insurance may seem like a mystery, and, honestly, the process can be pretty daunting. You might have questions like: “What information should I tell them?”, “Won’t my modifications mean that I can’t get insurance?”, or “What’s the point? They’ll just wriggle out of paying anyway!” So, over the next few months, we’re going to be getting the rundown on insurance from the team at NAC and passing that golden knowledge on to you lot. To kick things off, we’re going to be covering what you need to know before insuring your car — just remember, this information is specific to NAC, so it may not apply to other insurers.

Tip #1 — Be honest

Insurance is a legal contract based on both parties to the contract being absolutely upfront and honest with each other. Insurers ask questions of their customer to make a decision about whether to insure someone and on what terms. If you give false or misleading information, an insurer has the right to claim that the contract is invalid and not meet any claim you make. That’s not to say that the insurer is looking to avoid paying claims; it simply needs to know what and who is being insured so it can get things right for both parties. NAC’s best advice to you is to be totally honest, and if you don’t know the answer to something, say so — you may be surprised at how accommodating an insurer can be.

Tip #2 — Be prepared with a list of your mods

The whole point of having these cars is to revel in your hard work and show them off, so, when it comes to your insurance, you need to do the same. If you’ve modified your car, you’ll want to ensure that it’s properly covered, so tell your insurer about what you’ve done and the value of the modifications (the second-hand value of the parts, excluding installation) to properly establish the value of your car. The second-hand value is key, as that’s what you’ll be paid out on. However, the cost of installation isn’t included, as the policy only covers the car and parts, not the cost of adding those parts to the car. Things like engine upgrades (internal work, bolt-ons, etc.), suspension components (coilovers, arms, knuckles), bodykits, and even sounds all count.

Tip #3 — Make sure your car is legal

This is a no-brainer and doesn’t need much explanation. If you haven’t got a legitimate warrant of fitness, then you may not get comprehensive cover insurance — your car should be fully certified and street legal. Of course, this is not all about the financial implications, it’s also about looking after you and your fellow road users.

Note: NAC offers a fire, theft, and storage policy that may suit non-legal cars that are locked and secured in a specified shed or garage — this type of insurance is ideal for race vehicles and show cars. While the car is in storage, this policy covers you for fire, theft or attempted theft, natural disasters, or malicious damage. It also covers damage incurred in transit following an accident to the transporting vehicle.

Tip #4 — Have any questions ready

You’d be surprised what, and who, NAC will cover. It offers coverage for a range of modified cars, from mid- to high-power vehicles. The company has an open and understanding approach to young drivers and those with some driving offences or criminal convictions. If you have any concerns over your particular situation, have them ready and have a yarn to the team about them. NAC will help put together a package that suits you and your car — just ask!