What is imported car insurance?
Imported car insurance covers cars bought from an overseas seller and shipped to Australia, rather than overseas-made cars sold new by local dealers.
Depending on the particular vehicle, it is possible that some standard car insurers may offer cover for these types of cars, although higher premiums or other costs may apply. Some specialist insurers may also offer policies designed for imported cars.
Keep in mind that an ‘imported car’ in this context is not the same as a car which is manufactured overseas and then imported into Australia to be sold by a dealership.
Who offers imported car insurance?
The Insurance Council of Australia’s Find an Insurer service lists insurers who provide car insurance for imported cars. These include:
- Assetinsure
- Enthusiast Motor Insurance
- MB Insurance Group
- NRMA (NSW, ACT, TAS, QLD, SA, WA & NT)
- RAA Insurance (SA)
- RACV (Vic)
- Shannons
How much does it cost to insure an imported car?
Your premium for imported car insurance may vary based on the level of cover you require and the specific vehicle you’re looking to insure. However, you may have to pay more to insure an imported vehicle than you would a domestic one, especially if the car has been modified.
Some insurance providers reduce premiums when you make an effort to reduce the chance of your car being stolen. Providers also offer certain deals and offers that could include some savings when taking out new car insurance policies.
If you’re considering taking out a policy for your imported car, make sure to read all important policy documents carefully, to understand the extent of your cover.
Do imported cars cost more to insure?
Imported prestige cars can cost more to insure than cars that are made for the domestic Australian car market. Insurance providers may partially base their premiums on how likely a car is to be involved in an incident and how much it will likely cost to repair.
Fast imported cars tend to be seen as more likely to be involved in an accident and more expensive to repair if they have been significantly damaged or written off.
Why is imported car insurance more expensive?
Modifications
A car manufactured in an overseas market will likely have been made to different safety and road standards than a car made for the Australian market.
The Federal Government’s Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts notes that imported vehicles may need to undergo a range of modifications in order to make them legal to drive on our roads. This in turn may drive up the cost of your insurance premiums.
While most modifications usually aren’t a deal-breaker (as long as you inform your insurer about them), your provider may charge you more to insure the vehicle, depending on what’s been modified.
Faster potential speeds
If your imported vehicle could reasonably be referred to as a ‘sports car’, you may end up paying more to insure it. Cars made for speed, like Ferraris and Lamborghinis (often also referred to by insurance providers as ‘prestige cars’) are viewed as relatively risky to insure, due to the perceived higher chances of being involved in a crash.
This means that providers may take one of three approaches when it comes to insuring prestige cars:
- They may refuse to insure them
- They may insure them, but charge you a considerable amount more to do so
- They may specialise in insuring vintage and prestige vehicles, and a more expensive premium will generally be their default offering as a result.
Potentially expensive repairs
Imported cars, particularly those that aren’t ordinarily sold in Australia, are often more expensive to repair and service. This is due to parts being more difficult to source and specialist knowledge being required to service them. The need to potentially source rare parts or look for a specialist mechanic may be factored into the cost of your insurance policy.
Less competition among providers
With fewer providers who offer import car insurance in Australia, the policy you are offered may be more restrictive and pricing may be higher.
You might find the best option for you is to choose a policy that offers some extra features or inclusions, like an agreed value for your vehicle or your own choice of repairer. These could come with a higher price tag when it’s time to pay your insurance premiums.
What affects the cost of repairing imported cars?
Some of the factors that can affect how much an imported (or prestige) car costs to repair over the long term are:
- The brand’s routine maintenance schedule.
- The cost of parts (which will generally be higher for luxury brands like BMW and Mercedes when compared to affordable brands like Toyota and Mazda) and repairer charges.
- The exclusivity of the brand and its models (e.g., how easy it is to acquire parts and how simple it is to find a repairer for your car).
What are some other car insurance options?
Car insurance for imported cars most likely won’t be cheap. Your premiums and claim excess may be higher, and you may end up with greater out-of-pocket costs in the event of an accident. However, if you’ve invested in purchasing and importing a car, this might be a cost you’re willing to take on.
If you’re looking for a potentially more affordable option, you may want to consider buying a similar vehicle made for the Australian domestic market, which will most likely be cheaper to purchase, operate and insure.
No matter where your car is from, all vehicles travelling on Australian roads are required to be covered by Compulsory Third Party (CTP) or Green Slip insurance, separate to any specialised car insurance or comprehensive insurance policy.
What should I consider when buying an imported car?
- Approvals: You’ll need Federal Government approval to import vehicles into Australia. You can apply via the ROVER online portal.
- Other costs: This may include shipping costs, customs duty, GST and potentially the luxury car tax, depending on the particular vehicle you’re buying and how much it’s worth.
- Customs clearance and quarantine: Imported cars may be subject to strict cleaning and quarantine requirements, and will need to be declared to customs.
- Modifications: Your car will need to meet Australian Design Rules (ADRs) before it can be legally driven, so modifications may be required.
- Registration: You’ll need to register your vehicle within your state or territory.
Is it cheaper to import a car than buy one in Australia?
A cheaper base price and favourable exchange rate may make it seem like an overseas car is cheaper to purchase than an Australian market equivalent.
However, this doesn’t take into account importation costs, fees, taxes and compliance costs which ensure that the vehicle meets Australia’s Road Vehicle Standards laws.
If you’re looking to save money on a new car, importing probably isn’t a good idea.
Are imported Japanese cars more expensive to insure?
If you purchase a Japanese car and organise to ship it to Australia, it may be more expensive to insure than a car from a Japanese brand purchased domestically.
This is because buying and importing a Japanese car is a different process to purchasing a popular model that is being sold — either new or second-hand — locally in the Australian market.
