Insurance is usually more expensive for imported cars because insurers consider them ‘higher-risk’ due to potentially higher repair costs, higher specifications, and more powerful engines.
Why Imported Cars Can Be Costlier to Insure
Japanese import cars are known as ‘grey imports’, meaning they are from outside the EU and may come with expensive insurance premiums due to their risk factor and potential repair costs. Imported cars tend to decrease in resale value, and the cost savings of purchasing one can be affected by exchange rates and warranty complications.
Types of Imported Vehicles
There are two main categories of imported cars affecting insurance costs:
- Grey imports: Cars built outside the EU and not conforming to European standards. These often require specialist and pricier insurance.
- Parallel imports: Cars manufactured within Europe but outside the UK. They typically meet EU safety regulations, which means they’re usually less costly to insure than grey imports.
Additional Factors Influencing Insurance Costs
- Car desirability: Unique or rare models might be targeted by thieves, raising insurance costs.
- Government regulations: Cars failing to meet safety or emission standards could need modifications, which may impact insurance prices.
- Mileage limits: The less you drive, the less expensive your insurance may be.
- Car’s country of origin: Non-EU imported cars typically have higher insurance premiums.
- Frequency of use: Insurance costs will vary if the imported car is driven regularly or occasionally.
Finding the Best Insurance Deals
When insuring an imported car, especially high spec models like some Japanese imports, it’s important to shop around for the best insurance deals. Consider a specialist insurer for grey imports, enhance your vehicle’s security, and compare quotes for affordable coverage.
Challenges of Insurance for Imported Cars
Insuring an imported car can sometimes be more complicated due to its rarity, higher performance, and specialized parts. It’s key to research and compare policies to find the right one.
For advice on imported car insurance, you can reach out for professional help by calling 0117 955 6835.
Impact of Brexit on Parallel Imports
Brexit has caused changes, but under the current terms, there won’t be tariffs on UK-EU trades. Parallel imports might still need specialist insurance even though they are more likely to be covered than grey imports.
The Bottom Line
Imported cars, particularly those from outside the EU, tend to be pricier to insure. The complexity and uniqueness of these vehicles often entail higher premiums, but with thorough research and comparison, appropriate insurance can be found.