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Imported Car Insurance
The insurance numbers game is a pretty easy one to understand in reality. The companies try to figure out how likely you are to get into an accident. They take this risk calculation and they set their rates accordingly, charging just enough to cover all of the costs while still making a profit. Though it is obviously very difficult to get things exactly right, they do a really nice job of calculating risk generally. This brings us to the case of imported car insurance. The reason why you will pay more for imported car insurance quotes has everything to do with added risk.
Why does imported insurance cost more?
When you bring a car into the UK from the United States or a country like Japan, you are introducing more risk for the insurance company. The first reason has to do with performance. You will pay more for imported car insurance because American and Japanese cars tend to be high-performance vehicles. They have somewhat larger engines that the typical British cars that otherwise occupy the roadways. Another point is one that deals with import costs. When these vehicles are wrecked, you will pay a nice premium to fix them. That’s because the parts are often more expensive and they have to be brought to the UK. This is why insurance companies charge so much for imported coverage.
Grey imported vehicles and the insurance challenge
If you are buying what is known as a “grey” vehicle, then you can expect to pay more. The problem with these cars is that they are not built to EU standards. There are often many questions and much uncertainty surrounding these vehicles. They just are not built in a way that insurance companies can trust as saftey standards differ. This means that you can expect to pay more for this kind of insurance if you can find it. If you are looking for imported insurance for this kind of car, then you need to be prepared for a long search that requires a lot of energy.
Parallel import car insurance coverage
If you compare car insurance for a “parallel import” car, then chances are that it comes from somewhere on the European continent. When you bring a car in from the continent and it passes EU standards, then you should be able to find coverage from a wide range of different companies. Prices abroad tend to be a bit lower than what you will pay in the UK for a vehicle, so it can make sense to import a car if its standards pass.
Using a specialty insurance provider
With things like imported coverage, you will be better off going with a specialty insurance provider. Not only do these companies provide you with better rates, but they know how to take care of you when things go wrong. You will find that plenty of these companies exist, so it makes sense to do a car insurance comparison. When you compare the market, you will get a few different types of policies to choose from. This can help you get an insurance policy that is the right fit. Though cost is an important factor, it is not the only factor. Keep this in mind as you search.
A mileage limit could work
For some people, their imported car is one that they won’t drive as a primary vehicle. If this is the case for you, then you can bring down the rates by getting a mileage-limited policy. This puts a cap on the number of miles that you can drive, but it costs a lot less. This won’t be for everyone, but it could be a useful trick to help obtain cheap car insurance costs from the providers.