How can I reduce the cost of imported car insurance?

Are imported cars more expensive to insure?

Import car insurance tends to be more expensive than standard car insurance for cars bought in the UK. That’s especially true of cars imported from outside the EU, where models don’t conform to EU standards.

It can be harder for insurance providers to predict the risk of insuring a foreign car in the UK, especially if it’s built to a higher specification or it’s a left-hand drive. Cars that are built for performance and speed are statistically more likely to be involved in an accident and the premium you pay will reflect that.

If your imported car is damaged in an accident, it might need to go to a specialist garage for repairs, and parts can be tricky and more expensive to source. That means potentially a bigger bill for your insurance provider if you need to make a claim.

Because of the greater risk involved, not all insurance providers offer imported car insurance. That means you’ll have fewer providers to choose from, which can also make premiums less competitive.

See our guide on how to import a car from overseas.

What documentation do I need to get imported car insurance?

To get your imported car registered with the DVLA (Driver & Vehicle Licensing Agency), you’ll need to know the vehicle identification number (VIN). You’ll also need vehicle approval to show that your car meets environmental and safety standards.

If your imported car was registered in the EU, you may be able to get the documentation you need from the car manufacturer. However, if you import a car from outside the EU or it’s a left-hand drive car, it will have to pass the individual vehicle approval (IVA) test.

To do this, book your car in for a visual inspection and other tests at a DVSA (Driver & Vehicle Standards Agency) approved testing facility or an authorised private test centre.

If you bought your car from a dealer, some of this may have been taken care of already. Make sure you know the situation when you’re buying the car so you know what you need to do.

What are the different categories of imported cars?

You may see the following terms used to describe import cars:

Grey imports

Grey import vehicles usually come from outside the EU. They include certain high-spec Japanese and American cars, like the Nissan Figaro, Mitsuoka Viewt and Eunos Roadster – the Japanese version of the MX-5.

All vehicles imported to the UK from outside the EU will need to be inspected to check they meet the UK’s safety and environmental standards. In some cases, you may have to make changes to grey import cars, like adjustments to the lights, before they can be legally driven on UK roads.

The more mainstream the car, the cheaper the grey import car insurance is likely to be. But grey imports tend to have a higher specification with increased power. Cars like this might require special and, therefore, more expensive insurance cover.

Parallel imports

Parallel imports are cars from EU countries, usually from brands like Peugeot, Volkswagen and Ford, that will already meet UK safety standards.

Because parallel import cars have been built to meet European regulations and are often more straightforward to repair, they don’t typically cost much more to insure than a similar model bought in the UK. But remember, specs can differ between countries so you may still end up paying more for your parallel import car insurance.

Personal imports

A personal import simply refers to a car you’ve imported yourself, rather than one obtained through a dealer. You’ll need to register your car if you import it yourself.

How can I save money on my imported car insurance?

To help reduce your imported car insurance, consider:

• Where you park your car overnight. This is especially important for luxury models or sports cars that are tempting to thieves.

• Importing a car that corresponds to a lower insurance group. UK cars are assigned an insurance group based on factors including their price, engine size and safety features. Cars in higher insurance groups are more expensive to insure.

• Choosing a car with a lower spec or fewer after-market modifications. Even minor modifications can affect the cost of your insurance, making it more expensive.

• Paying a higher voluntary excess. Just make sure you can afford it if you make a claim. And don’t forget that if your car is a grey import, there may be a higher compulsory excess too.

• Building up and protecting your no claims discount.

• Paying annually – you’ll typically be charged interest if you pay monthly.

Get more tips on how to save money on your car insurance.

One of the easiest ways to see if you can save is by using our comparison service. Simply enter your details and we’ll find car insurance quotes that suit your needs.