Import Car Insurance: Your Comprehensive Guide
Import Car Insurance is a type of insurance. It is designed for exotic vehicles. This coverage meets the specific needs of cars that are not made for the local market. The Insurance Council of Australia is the representative body for the general insurance industry of Australia. Our work with our members, consumer groups and all levels of government serves to support consumers and communities. While we’re unable to provide direct consumer advice or services, we endeavour to assist where we can. Read more about the ICA on our website.
Key Takeaways
1. The insurancefor imported cars typically covers the same elements as standard policies but may also offer specialized protections, such as coverage for original parts, adjustments for inflation, and considerations for increased vehicle value.
2. Unlike conventional insurance, Import Car Insurance operates on an “agreed value” basis, ensuring that if the vehicle is totaled, the insurance company will pay out the predetermined amount.
3. This insurance often comes with relatively low mileage limits, as it’s generally intended for vehicles not used as everyday drivers.
What Is IMPORTED VEHICLE INSURANCE?
Imported vehicle insurance closely resembles standard car insurance but with some key differences. It is designed to accommodate the fact that imported vehicles often appreciate in value over time, unlike typical cars which usually depreciate. Besides the standard coverage, imported vehicle insurance includes additional protections for replacing or repairing original equipment manufacturer (OEM) parts.
Import Cars vs. Domestic Cars
For this article, an import car is defined as a vehicle not originally intended for the Australian market. These vehicles are imported into Australia through specialized sellers or buyers rather than through official brand channels.
An import car is any vehicle that has been legally brought from another country but not through the manufacturer’s official distribution network. While brands like Honda, Toyota, and Mazda are manufactured abroad, vehicles from these brands that are officially distributed in Australia are not considered imports.
Gray market vehicles are also included in this category. For example, a Honda model designed for the Japanese market that is imported into Australia falls into this category. Although gray market cars are permitted for import, they might require modifications to comply with local regulations.
Gray imports are often brought in by dealers focusing on niche markets or by individuals importing a vehicle personally. These vehicles, much like collector or classic cars, cater to specific enthusiasts and come with unique insurance requirements.
Some Of The Factors That May Affect Car Insurance Imported Vehicles Premiums
LEGAL REQUIREMENTS
HIGHER RISK
COST OF PARTS
LACK OF COMPETITIVE POLICIES
Our Top Picks for Car Insurance For Imported Cars
For those seeking Car Insurance For Imported Cars, major insurers like NRMA Insurance, Allianz Australia, and AAMI offer plans in collaboration with specialized insurance providers. These plans offer a blend of the reliability and customer service of well-known insurance companies with the specialized knowledge of niche insurance agencies.
To assist you in finding the best coverage, we have evaluated top insurance providers to identify those offering agreed value coverage for imported vehicles. According to our findings, these are the leading insurance providers for import cars:
| Import Car Insurance Provider | Overall Rating | Spare Parts | Mileage Max |
|---|---|---|---|
| 1. NRMA Insurance | 4.7 | $1,000 | Unlimited |
| 2. Shannons Car Insurance | 4.7 | $2,500 | Unlimited |
| 3. Allianz Australia | 4.6 | $2,000 | Unlimited |
| 4. Allianz Australia | 4.6 | $2,500 | Unlimited |
| 5. AAMI | 4.5 | $1,500 | 10,000 |
| 6. GIO | 4.4 | $1,200 | 8,000 |
| 7. Budget Direct | 4.3 | $1,800 | 7,000 |
When selecting the right insurance for your imported vehicle, it’s essential to compare quotes from a range of providers. For specialized Import Car Insurance, here are some options worth considering:
NRMA offers insurance specifically tailored for classic and imported vehicles, providing comprehensive coverage for OEM parts and unlimited mileage. Known for its reliable claims service, NRMA holds strong financial ratings, ensuring timely and dependable claim processing. Members also benefit from roadside assistance and repair services, including sourcing hard-to-find parts.
Shannons is a leading Australian insurance provider specializing in coverage for motoring enthusiasts. Their policies are tailored for owners of imported, modified, classic, veteran, or vintage vehicles. Shannons offers comprehensive insurance options, including agreed value, roadside assistance, and the flexibility to choose your preferred repairer. Additionally, they provide ‘Laid Up Cover’ for vehicles undergoing restoration, ensuring protection even when the car is off the road.
3. MB Insurance Import Car Insurance
MB Insurance is a leading provider for specialty vehicle insurance, particularly focusing on luxury and imported cars. They offer extensive coverage options, including agreed value, roadside assistance, and an emphasis on high-value vehicles. MB Insurance is known for its customer-oriented service, providing tailored packages that cater to unique needs such as modifications and OEM spare parts. Their policies also allow for flexibility in mileage, ensuring peace of mind for drivers who regularly use their imported cars. Customers praise MB Insurance for its responsive support and seamless claims process.
4. Allianz Australia Import Car Insurance
Allianz is one of Australia’s most trusted insurers, offering coverage for rare or exotic imported vehicles. Allianz enjoys high customer satisfaction and financial stability, with insurance plans that include unlimited mileage and extensive spare parts coverage. Clients can also opt for higher deductibles to reduce monthly premiums.
AAMI provides classic car insurance tailored to imported vehicles, featuring agreed-value protection, which increases the vehicle’s value by 6% in the event of a total loss. AAMI offers automatic 30-day coverage for newly added vehicles, ensuring continuous protection. Eligibility criteria include vehicles being used solely for pleasure, garaged storage, and drivers with a clean driving record and at least five years of driving experience.
GIO offers a wide range of coverage options for imported and collector cars. Their policies cover classic vehicles between 10 to 24 years old and antique vehicles over 25 years. Coverage includes liability, medical payments, comprehensive and collision insurance, and uninsured motorist protection. GIO’s plans also feature roadside assistance and agreed-value coverage, with up to $1,200 for spare parts.
7. Budget Direct Classic Car Insurance
Budget Direct provides competitive options for Import Car Insurance, offering agreed-value protection and single liability coverage for multiple vehicles. Budget Direct also includes roadside assistance with up to $2,000 in spare parts coverage. Known for its exceptional customer service, Budget Direct is a trusted choice in the insurance market.
4 Reasons Why Import Car Insurance Can Be Expensive
1. Modifications
Imported vehicles are often built to meet different safety and road regulations compared to those made for the Australian market. According to the Australian Department of Infrastructure, Transport, Regional Development, and Communications, imported cars may require several modifications to comply with local road laws. These necessary changes can increase the cost of insurance premiums. While most modifications won’t prevent you from getting insured (as long as you notify your insurance provider), depending on the extent of the modifications, insurers might charge a higher premium.
2. Performance Cars
If your imported vehicle is considered a ‘sports car,’ you may face higher insurance costs. Cars designed for speed, like Ferraris or Lamborghinis—often categorized as ‘prestige cars’—are typically seen as high-risk by insurers due to the higher likelihood of accidents. As a result, insurers may: Refuse to insure them altogether, Insure them but at significantly higher premiums, or Specialize in insuring vintage and prestige cars, with higher premiums being standard practice.
3. Costly Repairs
While popular brands like Toyota and Mazda dominate Australia’s best-selling car lists and are known for relatively affordable repair costs, the same doesn’t always apply to imported cars. Imported models, especially those not sold locally, may require expensive parts and services. Even within higher-end vehicles, some are more expensive to maintain and repair than others.
4.Limited Competition
With fewer insurance providers willing or able to cover imported cars in Australia, you may find that your options are limited and more expensive. Less competition in this niche market often leads to higher prices. Additionally, the most suitable policies might include extra features or benefits that drive up the premium cost.
Import Car Insurance: FAQ
An import car is any vehicle that was imported legally from another country but not via the manufacturer’s official distribution system. These might be imported by a dealer who specializes in smaller, more niche markets or even single vehicles purchased by an individual and then imported to the Australian.
Foreign cars aren’t always more expensive to insure, but their insurance costs can be higher depending on factors such as the car’s type, value, and usage. In many instances, insurance for import cars can actually be less expensive than standard car insurance.
Consider the vehicle’s value, usage, local regulations, and any additional coverage needs when choosing an insurance policy for your imported vehicle.
Mileage limits can impact how much you end up paying for your car insurance. Import car insurance may seem expensive, but it depends on how much you drive. Car insurance companies expect that you’d drive an exotic or imported car less frequently than your daily driver. When that’s the case, your insurance plan will have a yearly mileage limit. If you stay under the limit, import car insurance is usually cheaper compared to standard car insurance.
The primary advantage of importing a car is often a passion for the specific model. Additionally, imported vehicles can offer benefits such as improved fuel efficiency, superior reliability ratings, and more comprehensive warranty coverage.
Import Car Insurance: Our Take
Vanswest conducts thorough research to provide detailed and impartial reviews of top auto insurance companies. We assess several key factors crucial to consumers to identify the leading insurers:
Reliability: We prioritize insurers with strong financial ratings from AM Best, reflecting their ability to meet claims obligations. Companies with a proven track record of dependable service also receive high marks.
Availability: We consider the insurer’s geographic reach and eligibility criteria. Providers offering broader state availability and fewer restrictions are more likely to accommodate diverse consumer needs.
Coverage: Our evaluation looks at the range of coverage options, including limits and deductibles. We also factor in additional benefits such as roadside assistance to assess overall coverage quality.
Pricing: Pricing comparisons are complex due to varying factors influencing premiums. We analyze rate estimates from Quadrant Information Services, available discounts, and consumer feedback to determine pricing effectiveness.
Service: Customer reviews from sources like the Better Business Bureau (BBB) help us gauge service quality. Providers with fewer complaints and a streamlined claims process receive higher ratings.
Technology: Insurers with advanced digital tools, such as online quote generators, user-friendly claims apps, and usage-based insurance apps, score higher in this category.
In conclusion, there are numerous high-quality and budget-friendly options available for insuring your import car. Just like with standard car insurance, it’s crucial to compare different providers to find the best coverage and rates that fit your needs. This approach ensures you receive comprehensive protection while staying within your budget.
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