Tips on How to Make the Most of Imported Car Insurance

Imported Car Insurance

Imported cars prove to be costly from a variety of angles, ranging from the cost of purchasing the vehicle, importing the car, shipping duty, and of course, the cost of insuring an imported vehicle is much greater than the cost of insuring a domestic vehicle.

The expensive cost price of the vehicle, the difficulty of finding spare parts and repair charges, along with the increased risk factor, the in adaptability of the vehicle on foreign roads, market monopolies and such associated factors cause the charges for insurance of imported cars to be much higher. In this article we give you some tips on how to make the most of imported car insurance policies.

The first thing to take into consideration is the model of the car and also its make. These factors determine the overall cost of the car and hence influence the cover policy as well. The make of the car determines its features and the model will determine the complexity of the same, and cars which have hi-tech features or extremely advanced systems tend to be rated for higher insurance premiums and policies.

Apart from the extreme costs that are incurred, a major disadvantage lies in the fact that many insurance firms actually refuse to take out a car insurance policy if the car is a high performance vehicle with a large risk factor. Hence, if you intend to import, it is important to bear in mind the model and the make of the car and the implications of the same. If the disadvantages involved are greater one should seriously consider purchasing a more optimal vehicle.

Since the main determinant of the price for the insurance policy is the risk involved with the vehicle, companies tend to charge a higher rate for cars in which the prospective risk envisioned is greater than it is for average vehicles. Since foreign cars as it is are not built for functioning on the ‘host’ countries’ roads, the risk involved is anyway greater, and given the complexity of the vehicle, the performance risk too increases.

Insurance firms often charge a very steep price if the envisioned risk is high and one method of reducing this price would be to take stringent precautions against foreseeable risks and making the vehicle more road-friendly. Installing devices and security measures to be in accordance with domestic standards can help to reduce the cost of car insurance policy.