In this present economy, it is understandable if people would want to save on their car insurance. If you have plans of buying an imported car, the first thing you need to be aware of is that imported car insurance rates can be at least twenty percent more expensive as compared to the average rates for standard car insurances.
Imported cars are a must buy for car enthusiasts. These cars have a certain appeal that cannot be found with local models. Regardless of the way you have acquired it is not really that relevant as compared to its insurance. Before you buy any import car insurance, you have to assess how this can affect your car insurance.
How does an imported car affect car insurance?
If you look at the perspective of an insurance company, a lot of problems are present when it comes to the processing of claims of imported cars. Most providers find a problem in computing the value for the costs of premiums since they basically do not have any idea as to what they are dealing with. There are also the car parts to think of which may not be found locally and the car may need a special treatment from a specialist mechanic such as cars that have right-hand drive features. Because of these reasons, there may be some insurers who would refuse to insure your imported car at all.
Two types of import classification
Insurance companies classified imported cars into two types. These are the following:
- Parallel imports– These imported cars are usually imported from within the European Economic Community and they meet your home country’s standard. They are made available as domestic cars and do not need to be imported. They have earned the “parallel” label for their local/foreign availability.
- Grey imports– These cars have not been manufactured according to the specifics of your country. This means that these cars have not been tested. Since this is the case, there will be a need for you to compile some specific information that will be submitted to your insurer. Because it will be more difficult to find parts for these cars, expect that the cost of insurance will be more expensive.
Both of these types have been bought into the country without established networks that are recognized by insurers. Parallel imports are generally cheaper to insure than grey imports.
How to get cheap imported car insurance
If you want to pay cheap for imported car insurance, you should look for insurers that specialize in insuring these types of cars. If you have a Japanese car for example, there are providers that specially cater for cars such as these. You must get at least four to five different insurance quotes before you commit to anything. You can also use comparison websites to make this task easier. Of course, you should be ready to provide some important details regarding your car. If you have a right-hand drive car, ask if you will be paying for a different rate for premiums. The rate may be different since the companies see opposite hand drive vehicles to be riskier on the road. In addition to this, since your car is considered a unique item, the security features will be inspected which means that you could qualify for a discount if you have an alarm monitoring system.
Take note that additional charges may apply with cars having first registered outside the country although there are some insurers who will waive this amount if there is a local equivalent to the model of your car.
Be equipped with the right documents
You may need to get in contact with specialist car insurance if you have no experience importing car to your home country. Imported car insurance specialists usually have an established relationship with foreign exporters and are more than capable of dealing with import duties and taxes. If you live in the UK for example, there will be a need to pay for VAT on top of providing the DVLA and import documents. See if there is a need to buy temporary car insurance while your car is being transported to your country.
Take a background check as to where your car comes from. If it comes from a country with low crime rates, this means that people there do not need a lot for security devices and your car may lack security devices. This can increase the amount for your premiums.