Imports and Car Insurance: Things You Need to Know
Imports have always been popular in the UK. Whether it’s chicken tiki masala, or Levi’s jeans, the British have long loved things that come from elsewhere. Imported cars are no different. While the British motor industry does produce some amazing motors, there is something to be said for the flashy luxury of the latest continental super car or luxury motor. As nice as they import cars can be, finding affordable insurance for them can be a bit of a nightmare. This guide will explain why import cars are so expensive to insure, and share some ways to lower the premium on your luxury import motor.
The Reason Behind the Cost
There are a few issues with pricing insurance for import cars that give insurance companies pause. The over-arching issue is that insurance companies need to determine how much of a risk and import motor is in terms of the chance the insurance company will have to pay on a claim.
Many imported motors have higher performance levels, this is one of the things that make them so desirable. However, higher performance ability generally equates to more risk for the insurance company for two reasons. The first is that the car will be more expensive to repair or replace if it is in an accident. This is important to note, as risk does not only take into account the chance that a company will pay on a claim, but also how much the company will have to pay on the claim. The second reason that higher performance motors are riskier is that drivers attempt to do more with the cars because of their higher performance abilities. This results in riskier driving and creates a statistically significant increase in the number of claims the company will have to resolve.
In addition to the performance elements, import cars usually cost more for UK car buyers. This means that the insurance company will have a larger pay out if they have to validate a claim. The higher pay out means there’s more risk.
Another factor that many people don’t consider is that the UK insurance industry does not have as good of access to information regarding manufacturing standards in other countries as it does with motors produced in Britain. This creates a set of unknowns that insurance companies must deal with. Insurance companies are conservative by nature, so unknown elements are almost always assumed to be the worst-case scenario. This means the insurance company is protecting itself financially, as it is bad business to offer insurance if you think you are going to pay more than the policy is going to make.
Getting the Best Price on Car Insurance for Import Motors
That being said, how do import car owners get the best price on car insurance? There are a number of things that import motor enthusiasts can do to lower the cost of insuring their import car. One thing that will help lower insurance prices is the addition or presence of security measures like alarm systems and immobilizers. These make it less likely the car will be stolen, and so it is not as risky for the insurance company.
Another step import owners can take to reduce their car insurance premiums is to take additional safety courses beyond those required for qualification. These courses reduce the risk the driver will be in an expensive accident, and many insurance companies reward drivers who go through the courses with a reduced rate.
Most import motors also have owner’s clubs and other enthusiast organizations. These groups will usually be able to point import owners in the direction of the car insurance company that is best for that particular type of car.
Finally, there are some insurance companies that specialize in high-performance and luxury cars, including imports. These insurance companies may be better prepared to offer an assessment of the risk you and your car pose, and thus might offer a better rate than a company that is unsure and thus assumes the worst-case scenario when pricing your premium.
Owning an import motor can be a rewarding experience. Savvy drivers should use these tips to help make sure that they have more quid for petrol when they are done paying insurance so they can enjoy their import car to the fullest.