Imported car insurance

If you're the proud owner of a Mitsubishi FTO, or indeed any other imported car,
then chances are you know all about the difficulties of finding competitive car
insurance. However, there are ways to find affordable deals as long as you are savvy
in what you look for from a policy.

Why is imported car insurance different?

Irrespective of the car you own, insurers will take into account a number of risk
factors when assessing the premiums you receive, including: your address; your
personal circumstances; your annual mileage; your driving history; and the vehicle
you drive itself.

Usually when considering the vehicle you drive, insurers are interested in: its age,
because older vehicles generally cost less to repair/replace; its security features,
because the better the security the less likely it is that a theft will occur; and its
performance capabilities, because cars with larger engines are more likely to be
driven at high speeds.

However, with imported cars, premiums are often higher simply because the insurer
is less likely to know what it is taking on. For example, a part may be more difficult
to repair or replace; and the vehicle itself may not be up to the same standards as
vehicles that are sold in the UK.

Typically, imported cars are divided into two categories:

- Parallel imports: These are the most straightforward for insurers, as they are
often left-hand vehicles generally imported from Europe and therefore usually
meeting European standards.

- Grey imports: These are more difficult to insure as they are bought outside
the EU, such as in Japan, and may not be built to European standards or be EU-
approved.

A closer look at grey import insurance

Grey imports, particularly those bought in Japan, tend to have lower mileages and
higher specifications than the equivalent models bought in the UK, making them
more popular. With prices usually low they often hold real appeal to those who know
their cars.

That's why a number of imported car insurance specialists have emerged. They
reflect the fact that imported car owners are often more knowledgeable about their
vehicles with more competitive premiums and a number of specialist policy features
including:

- Advanced driving discounts: Completing an advanced driving course, such as
the Pass Plus, IAM or MAX Driver qualifications, could see your premium reduced
significantly as it shows the insurer you can confidently handle an unusual vehicle.

- Left hand drive: Some insurers will offer the same premiums for left hand drive

models as long as there are no other modifications away from typical European
standards.

- Mileage discounts: If you use your imported car as a secondary vehicle you may
wish to agree to a limited mileage which could drive your premiums down.

- Owners' club discounts: Some imported car insurers offer lower premiums to
members of owners' and manufacturers' clubs because they are taking the time to
learn more about their vehicles and are more likely to take good care of them.

Further ways to save

While specialist imported car insurers are often best for grey imports it's still worth
considering all your options by using a comparison website to see if any regular
insurers will offer deals too. This way you get a thorough overview of the market and
you can make an informed choice.

In addition to shopping around, remember that all insurers base premiums on risk
regardless of the vehicle you drive. As such, the following steps should help make
your quotes more affordable:

- Boost security: Alarms, tracking systems and immobilisers can help bring
premiums down by lowering the risk of theft.

- Build up a no-claims discount: Drive safely, avoid accidents and convictions and
you could reduce premiums by as much as 60 per cent after four or more years.

- Increase your excess: Raising your voluntary excess should lower your
premiums – just keep it at a comfortably affordable level in case a claim is ever
necessary.

- Park safely: For unusual vehicles it's vital to keep them stored safely and out of
the sight of prying thieves.

- Pay annually: Paying premiums upfront will help avoid monthly interest charges.