Import Car Insurance, Imported Car Insurance, Insurance for Imported Autos

By: EconomyWatch   Date: 26 May 2010

About The Author

EconomyWatch

The core Content Team our economy, industry, investing and personal finance reference articles.

EconomyWatch, Content Team

 

  • Dot Div
  •      

Import car insurance is more expensive than insurance for domestically manufactured cars with equivalent specifications. Insurance companies might raise the policy price by about 30 percent for an imported car.

Why Does Import Car Insurance Cost More?

Here are some determinants that lead to higher import car insurance rates:

  • An imported car is, usually, expensive, which causes the policy premium to surge.
  • Unavailability or lower availability of parts.
  • Small number of insurance companies offer import car insurance. So the lack of competition leads to higher prices.
  • Safety and environmental standards are below the domestic threshold.

    • Tips to Reduce Import Car Insurance Premiums

  • Make and model of the car: The insurance premium for an imported car depends on the make and model specifications. A performance car or high-tech engine automobile means higher premiums. Many insurance companies might refuse to insure an imported sports utility vehicle due to high risks involved.
  • Owners’ Club: A wise idea is to get affiliated to a car owners’ club. Buying insurance through an owners’ club offers group policy benefits.
  • Specialist insurance company: A specialist insurer understands the needs and requirements associated with an imported car. Such an insurer will provide specific policies and discounts for import car insurance. Also, a specialist insurance company can shield you from all the legal hassles in relation to buying an imported car. For a valued customer, a specialist company can offer custom-made import car insurance to provide the best deal.
  • No-claims bonus: If an individual has not filed any claims over a specified period of time, the policyholder is eligible for a no-claims bonus from the insurer.
  • Security: Insurance companies strictly consider the security standards in imported cars. The car owner should install high-quality security equipment to enjoy savings on import car insurance. In some countries, car owners have to meet domestic standards on car security measures, such as the Thatcham security standards in the UK.

    • With the advent of technology, it is possible to buy online import car insurance. It helps to compare policies from different providers and buy a cost-effective insurance policy.


    • Dot Div
    •      
    blog comments powered by Disqus