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Can you buy car insurance for an imported car?
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If you’re in the market for a new car but are planning on looking beyond UK forecourts, then you’ll need insurance designed for imported cars. Here, we take a look at how imported car insurance works and how you can keep the cost of car cover down.
What is imported car insurance?
If you import a car into the UK, you’ll need imported vehicle insurance. You’ll still be covered for events such as damage, fire, and theft but the policy will take into account the unique nature of your car.
Depending on where you import your car from, it will fall into one of two groups for insurance purposes, which are:
Parallel imports
Cars made and brought over from the European Union (EU) are classed as parallel imports. Essentially, it means they meet all the same safety standards as cars manufactured within the UK.
Grey imports
Cars made anywhere else in the world are classed as grey imports. Naturally, these cars won’t conform to UK regulations. Popular grey imports typically include Japanese and American cars.
Is imported car insurance more expensive?
The short answer is yes. It will usually cost more to insure an imported car than one made for the UK market. There are various reasons for this, for instance:
- Parts may be harder to source and be more expensive.
- Your car may need a specialist mechanic which is likely to cost more too.
- Grey imports in particular tend to be manufactured to higher specifications and can be considerably more powerful, which puts them at greater risk of being involved in an accident.
Why import a car into the UK if imported car cover is more expensive?
Imported cars can be much cheaper to buy thanks to exchange rates. For some car owners, that’s enough of a reason to import a car, especially if it’s a parallel import and the only real difference is left-hand drive versus right-hand drive.
For car enthusiasts or collectors, a grey import can be an opportunity to own a much higher specification car with greater performance.
How do I import a car into the UK?
You can buy imported cars from specialist dealers, if you do, they’ll usually handle all the paperwork and deal with any import procedures.
Alternatively, you can import a car yourself (these are known as personal imports). If you decide to do this, there are four steps you must complete before you look for imported car insurance:
- Tell HMRC (HM Revenue and Customs) that the car has arrived in the UK. You’ll have to do this within 14 days of its arrival.
- Pay VAT and customs if told to do so by HMRC. The cost depends on how much you paid for the car, any accessories and delivery fees.
- Get your imported car approved. Parallel imports will just need a European certificate of conformity from the manufacturer. If the car is left-hand drive, you’ll also need a certificate of mutual recognition. Grey imports will need an IVA (individual vehicle approval).
- Register and tax your imported car with the DVLA who will then give you a number plate.
Can I buy short-term imported car insurance?
If you don’t plan on driving your imported car every day, a specialist insurer may be able to offer you short-term cover. However, it’s worth being aware that just as annual insurance is pricier for imported cars, short-term or temporary cover is also likely to cost more compared to conventional cars.
Can I insure my imported car before it arrives in the UK?
If you need to insure your car before it arrives in the UK, most insurers specialising in imported cars will be able to help you arrange this. To buy a policy, you’ll need the car’s VIN (vehicle identification number).
How can I cut the cost of imported car insurance?
You can lower the cost of imported car insurance in the same ways as you would for a conventional car, including:
- Pay for your policy annually – paying upfront means you’ll pay less overall as monthly instalments are likely to include interest charges.
- Car security – you can keep premiums as low as possible by keeping your car secure. Ideally, that means keeping it in a locked garage overnight or on a private driveway. If this isn’t possible, investing in a car alarm or immobiliser can also help.
- Keep modifications to a minimum – changes to the factory settings of your car will increase premiums so it’s better to avoid making any at all.
- Increase your voluntary excess – a higher excess will lower your premium, but it still needs to be affordable because you won’t be able to go ahead with a claim unless you pay it.
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