I bought a non-running project car (a 1985 RX-7) that I needed to transfer into my name. The DMV demanded “Proof of Insurance” to issue the title and registration, even though the car has no engine. I called my agent, and they said, “We can’t insure a car that doesn’t run.” I was stuck in a bureaucratic loop.
Key Takeaways
- The “Storage” Policy: You need “Comprehensive Only” (Comp-Only) insurance. It covers theft and fire but has no liability/road coverage.
- DMV Triggers: In some states (like NY), Comp-Only does not satisfy the DMV requirement for plates. You might need to buy full liability, tag it, and then immediately surrender the plates or suspend coverage.
- “Material Misrepresentation”: If you buy a standard policy and say it runs when it doesn’t, and then a tree falls on it, they can deny the claim if they find out it was a shell.
- Restoration Products: Specialty carriers offer specific “Project Car” policies that satisfy proof of ownership/value without requiring road legality.
The “Why” (The Trap): The Liability Requirement
The state requires insurance to ensure you can pay for damages if you hit someone.
If the car has no engine, it can’t hit anyone.
But the DMV computer doesn’t know that. It just sees a VIN.
Insurers don’t want to sell Liability on a non-runner because it messes up their risk algorithms (or they fear you will fix it and drive it without telling them).
[IMAGE: Photo of a DMV form requiring “Insurance Policy Number” next to a photo of an engine-less car]
The Investigation: I Called Them
I tried to insure a shell.
1. Progressive
- Answer: “We can write a liability policy.”
- Risk: I had to pay for road coverage I couldn’t use.
- Cost: ~$50/month.
2. Hagerty “Restoration”
- Answer: “We cover the car under restoration.”
- Benefit: Covers fire/theft/parts.
- DMV Issue: In some states, this policy does not report to the DMV database as “Liability,” so you can Title it, but you might not be able to get Plates. (Which is fine for a project).
3. The “Non-Op” Option
- State Specific: In CA, you file “Planned Non-Operation” (PNO). You don’t need insurance to transfer title, only to get plates. Check your state laws.
Comparison Table
| Goal | Policy Needed | Cost |
| Transfer Title Only | None (in most states) | $0 |
| Get License Plates | Liability (Minimum) | ~$400/yr |
| Protect from Theft | Comprehensive Only | ~$150/yr |
Step-by-Step Action Plan
- Check DMV Codes: Does your state require insurance for a Title transfer or just for Registration (Tags)? Usually, you can get a Title without insurance.
- Buy Comp-Only: If you want to protect the asset, buy a Restoration policy from Hagerty/Grundy.
- The “Tag and Drop”: If you absolutely need plates, buy a cheap liability policy, get the plates, and then (if legal in your state) suspend the liability coverage while keeping comprehensive. Warning: Some states will suspend your license if you do this.
- Be Honest: Tell the insurer: “It is under restoration.” Do not say “It is my daily driver” just to get a policy.
FAQ Section
Can I tow an uninsured car?
Yes, if it’s on a trailer. The trailer’s liability covers it. If it’s on a tow dolly (wheels down), some states require the towed car to be insured.
What if I finish the project?
Call before you turn the key. Convert the policy from “Restoration” to “active Driving.”
Does this build my insurance history?
Yes. Having a policy active, even on a non-runner, prevents a “Lapse in Coverage” on your record.