Insurance Premiums for Imported Cars
Insurance is more expensive for imported cars. This is because insurers see them as ‘higher-risk’. They cost more to repair and are often higher-spec, with more powerful engines, than standard cars. So insurers either increase their prices or refuse to insure imported cars.
Grey and Japanese Imports
Japanese import cars are ‘grey imports’ imported from outside the EU. Insurance is more expensive for grey imports due to the associated risk factor and repair costs. Imported vehicles may also decrease in resale value, and savings could be affected by the exchange rate.
Parallel Imports and Brexit
A parallel import comes from the EU and meets the same safety regulations as UK cars, making them less expensive to insure than grey imports. While Brexit won’t impose tariffs on imports between the UK and EU, parallel imports might still need specialist insurance, potentially costing more than normal insurance.
Insuring Imported Cars
It can be challenging to insure an imported car. Many insurers won’t provide quotes for imported cars, necessitating the search for a specialist insurer. If the car is a grey import, premiums are higher due to increased risk and repair costs. However, purchasing insurance for imported vehicles is not fundamentally different from insuring other cars.
Factors Affecting Insurance Costs for Imported Cars
Resale Value and Warranty Considerations
Imported cars might lose resale value and exchange rate fluctuations can affect savings. Warranty specifications may also cause difficulties.
Safety and Emissions Standards
Imported cars may not meet the same safety and emissions standards as domestic cars. They also might be built to a higher specification than conventional cars, increasing the likelihood of an accident.
Specialist Insurance and Security Measures
Many insurers are wary of imported vehicles, so it might be necessary to find specialist car insurance. Imported cars might be targeted more by thieves due to their rarity, influencing insurance premiums.
Acquiring Car Insurance Quotes
To find the right imported car insurance policy, it’s important to compare quotes and consider factors like modifications, security, and the car’s country of origin.
It is typically more expensive to insure a foreign car. For grey imports, finding a company that will provide coverage can be easier than it once was, with many insurers now willing to offer insurance even for these vehicles.