What Should I Know About Insurance for Imported Cars?
Insuring an imported car in the UK can be more complex than insuring a locally manufactured vehicle. Imported cars often come with unique specifications, making them harder to evaluate for risk, which can lead to higher premiums. In this guide, we’ll explore how insurance for imported cars works, why costs vary, and how tools like CarOwl can simplify the process by verifying a car’s history.
Why is Insurance for Imported Cars Different?
Insuring imported vehicles differs from standard car insurance due to the following factors:
- Unfamiliar Specifications: Imported cars, especially grey imports, often have specifications that differ from UK models, making them harder to evaluate for risk.
- Parts and Repairs: Grey imports may require specialised parts and mechanics, which can increase repair costs for insurers.
- Compliance Concerns: If an imported car hasn’t undergone required modifications, it could pose additional risks, raising premiums.
- Higher Market Value: Luxury or rare imports often carry higher insurance premiums due to their value and limited availability.
Types of Imported Cars and Their Impact on Insurance
The type of import significantly affects insurance costs:
1. Parallel Imports
These cars are built to European specifications and align closely with UK standards, making them easier and less expensive to insure. Parallel imports usually share parts and servicing options with UK models, reducing risk for insurers.
2. Grey Imports
Cars intended for non-European markets often require modifications to meet UK safety and emissions standards. Their unique specifications, limited availability of parts, and potential compliance issues make them more expensive to insure.
How to Get the Best Insurance for an Imported Car
Follow these tips to secure affordable and comprehensive insurance for your imported vehicle:
1. Disclose the Car’s Import Status
Always inform insurers that your car is an import. Failing to disclose this information could result in your policy being invalidated. Be prepared to provide details about:
- The car’s country of origin.
- Any modifications made to meet UK standards.
- Its service and maintenance history.
A history check with CarOwl can provide the necessary details to streamline this process.
2. Compare Quotes from Specialist Insurers
Specialist insurers cater to imported vehicles and often provide better rates and coverage options. Compare multiple quotes to find the best policy for your needs.
3. Verify the Car’s History
Use a trusted service like CarOwl to confirm the vehicle’s history. This includes its import/export status, accident records, and outstanding finance. A clean history can make the car more appealing to insurers.
4. Provide Evidence of Compliance
Insurers prefer vehicles that meet UK standards. Share documentation of any modifications, such as recalibrated speedometers or emissions upgrades, to demonstrate the car’s roadworthiness.
5. Consider Usage-Based Insurance
If you don’t drive your imported car frequently, usage-based insurance could help reduce premiums. These policies charge based on the miles you drive, making them ideal for rare or luxury imports.
Common Challenges with Insuring Imported Cars
Be aware of these potential hurdles when insuring an imported vehicle:
1. Limited Insurer Options
Not all insurance companies cover imported cars, particularly grey imports. Working with specialist insurers is often necessary.
2. Higher Premiums
Imported vehicles are generally viewed as higher risk due to their unique specifications and repair costs. Expect to pay more for coverage, especially for grey imports or luxury models.
3. Lack of Comprehensive Data
Insurers rely on detailed information to assess risk. If the car’s history is unclear or incomplete, premiums may be higher. A full report from CarOwl can provide the transparency insurers need.
Steps to Reduce Insurance Costs
While insurance for imported cars can be pricey, these steps can help lower your premiums:
1. Improve Vehicle Security
Installing security features, such as alarms, immobilisers, or tracking devices, can reduce premiums by lowering the risk of theft.
2. Opt for a Higher Voluntary Excess
Increasing your excess (the amount you pay towards a claim) can reduce your monthly premiums. Ensure the excess is still affordable in case of an accident.
3. Pay Annually
Paying for insurance upfront can save money compared to monthly instalments, which often include interest charges.
4. Maintain a Clean Driving Record
A history of safe driving and no claims can significantly reduce your insurance costs over time.
5. Use a History Check Service
A full history check from CarOwl ensures the car’s background is clear, making it more attractive to insurers and potentially lowering premiums.
Conclusion
Insuring an imported car in the UK requires careful planning and research. By understanding the unique challenges and working with specialist insurers, you can secure the right coverage at a fair price.
Start with a history check using CarOwl to provide the transparency insurers need and ensure your car is roadworthy and compliant. With the right approach, you can enjoy the benefits of owning an imported vehicle with peace of mind.
