Imported Car Insurance: Why is it more expensive and where can I get the best deal?
Importing a car isn’t just simply a case of buying the car of your dreams for less than you would pay over here, loading it onto a ferry, and then driving off into the sunset once you reach Dover. In fact, importing a car into the UK can be quite a lengthy (and costly) process. It could also mean that your imported car insurance on that dream car is much more expensive too. But why should it cost you more to insure an imported car? And is there any way you can save yourself money with specialist insurance?
Getting all the paperwork in order
Once you’ve bought your car, you will need to make sure that all the paperwork is in order before you even think about getting insurance. The government’s vehicle import site gives you all the current information you need, but in a nutshell, you’ll need to go through the following steps:
Firstly, inform HMRC within 14 days of importing the car that it is now in the UK. They will then tell you if you need to pay any additional Import duty or VAT on the vehicle.
You will then need to get vehicle approval to drive on UK roads. If your car was either registered or manufactured more than 10 years ago, it may be exempt from approval. If your vehicle was originally not registered in the EU then you need to apply for Individual Vehicle Approval. If it is registered in the EU, then you will need a European Certificate of Conformity from the manufacturer, and a certificate of Mutual Recognition if it’s a left-hand drive.
Of course, once the UK leaves the EU in the next couple of years, these regulations may change, so it’s well worth checking the government website before you start the process of importing a car.
Once all of those particular hoops have been jumped through, it’s time to register and tax the vehicle with DVLA, so that you can have UK registration plates made up.
Now it’s time to think about insurance. And the first thing you’ll discover is that ‘Imports’ (often referred to as ‘Grey Imports’ if they’re imported from outside the EU) command considerably higher insurance premiums than their native cousins. So why is that?
Why you’re paying more
The main reason stated by insurance companies as to why imports are so much more expensive is the problem of finding parts. According to insurance providers, it’s harder and more expensive to source replacement parts and carry out repairs on imported vehicles, which in turn drives up the premium.
‘Grey’ imports (which originate from non-EU countries like Japan) are more expensive to cover because they do not conform to EU standards. That is not to say you’re buying a sub-standard car, and in fact, sometimes Grey imports are tested to much higher standards than some European models. Parallel imports (those from EU countries) are usually more straightforward, but can still command an inflated insurance premium. Be aware that some insurance providers refuse point blank to insure ‘Grey’ imports, and are even a little bit difficult to deal with when it comes to parallel imports, too.
Need help and advice with your imported car insurance? Call us today on 0117 955 6835.
That hardly seems fair…
Unfortunately, even though it doesn’t seem very fair, the decision whether to offer insurance or not ultimately rests with the provider. And as you cannot drive on the road without insurance, it’s a must-have and not something you can simply side-step.
Thankfully, with so many companies now offering car insurance, it’s usually pretty easy to find one that will offer you cover, even if your vehicle is a Grey import.
Who to talk to
It is possible to go online and scour the comparison websites for imported car insurance. However, you may find that you’re being blocked at almost every turn, or facing premiums that are way out of proportion to the actual value of the car. So your best bet is to go to a broker that offers specialist insurance. Companies like Park Insurance have been working on behalf of customers for over 30 years to find affordable and cost-effective insurance, whether your car was made abroad or right here in the UK.
So how do brokers like Park find you cheaper insurance? Simple – they have what is known as ‘preferred brokerage’ status, which means they have contacts within the industry that you simply can’t find online. They’ll also be able to advise you on how to keep your premiums down, such as:
- Keeping the car in a locked garage
- Using approved immobilisation and GPS tracking technology
- Having an approved alarm fitted
- Increasing your excess to reduce your premiums
- Finding an insurance provider who will take into account your No Claims bonus
Is there anything else I can do to keep the cost down?
One thing that may bump up the cost of your insurance (whether your car is an import or not) is adding modifications. Keep the mods down to a minimum, and try to choose ones that an insurance company will find more attractive (so go for effective alarms, not alloy rims!). And ask your broker to shop around for you. Remember that the insurance companies are competing for your business, so if you don’t ask, you don’t get.
Need expert advice on your imported car insurance? Call us today on 0117 955 6835.