The insurance premiums that any given driver can expect to pay can vary greatly from one insurer to the next, and there are several determining factors that may significantly alter what you are charged on a monthly or annual basis.
If you own an imported car, or you’re thinking of purchasing one, it’s important to ask yourself whether you might end up forking out more to insure it, than would’ve been the case if you had simply purchased a vehicle from your local dealership.
The answer is typically yes, you probably will have to pay more to insure your imported vehicle. But it’s equally important to appreciate the likely reasons for this – as have been detailed below.
“The unknown” can be pricey
Generally, it costs more to insure an imported car because it’s more difficult for an insurance broker to weigh up the pros and cons of providing a policy for it. Insurers are always trying to determine just how much of a risk they’re taking on by insuring a particular car, and there can be a lot of unknown specifications surrounding imports.
For example, if anything was to malfunction within your imported car, there’s a chance that it would need to be taken to a specialist garage, and repairs could cost more. Most insurance companies aren’t willing to take on this liability without verifying that they’re covered, which usually comes in the form of pricier premiums.
Does the type of car you import change anything?
There are two types of cars that you can import into the UK: ‘grey’ imports and ‘parallel’ imports, and yes, the decision you make here can change your insurance cost.
Grey imports are built outside of the EU and therefore don’t necessarily conform to European build standards and regulations. To make one of this road-legal in the UK, there’s a hoop or two that you need to jump through, including subjecting the car to an Individual Vehicle Approval (IVA) test.
As a rule of thumb, parallel imports are easier and cheaper to insure than grey imports, as they already conform to the necessary EU regulations and standards. So, if you’re absolutely determined to purchase a powerful Japanese 4×4 (a grey import) over a Volkswagen (a parallel import), be prepared to pay the difference in insurance.
How to save money on your import car insurance
If you would like to get a clearer sense of whether importing a car into the UK would be the right decision for you, it’s probably a good idea to turn to a specialist firm like MoneyBeach to compare quotes for import car insurance before you commit to a purchase.
Reducing the price that you pay for your imported vehicle’s insurance premiums isn’t necessarily impossible, and there are a few things that you can take into consideration to aid this.
If you’re choosing to import a car into the UK, try not to purchase one that has undergone significant after-market modifications. These alone can bump up your premium price. In addition, having a secure area to park your car overnight, such as in a locked garage, is an extra precaution that reduces the insurance provider’s risk, and may lower your premiums as a result. Don’t necessarily allow yourself to be deterred from importing a vehicle on the grounds of cost factors alone. Do, however, be mindful of the very real difference it can make to your car insurance premiums – and prepare accordingly.
