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Car Insurance for Imported Cars
Car Insurance for Imported Cars
Written by
Kervin Mathew
Edited by
Ellie Garran
Reviewed by
Toby HagonCompare car insurance policies the easy way
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What is imported car insurance?
Long story short
Importing a car can be expensive
From asbestos testing to customs to compliance modifications, importing a car can be a long and winding road with fees and expenses around every corner.
Premiums can be higher for imported cars
Factors like safety modifications, rare parts, and agreed value can drive up the costs.
Specialised insurance might be a game-changer
Specialist insurers offer tailored coverage for imported cars, including salvage rights, lifetime repair guarantees, and support for extensive modifications.
There are ways to save on premiums
Garaging your car, installing anti-theft features, and taking a defensive driving course might help lower your premium.
What is imported car insurance?
First things first; an imported car is one that you buy from overseas sellers and have shipped to Australia. You could go the personal import route and import a car as an individual or buy it directly from an importation business as a parallel import or grey import. And just like there are different ways to import a car, there are also different options when it comes to insuring it.
To insure a specialist car, you will likely need a specialist insurer. Currently, we do not compare car insurance policies that cover private imports. But while we can’thelp you to insure your import, we can help you to better understand how insurance for imported cars works.
Imported car insurance vs standard car insurance
For all intents and purposes, insurance for imported and standard cars pretty much operates the same way. But imported car insurance is likely to attract a higher premium because of the extra bits and bobs involved. These can include:
- safety modifications to make your import roadworthy
- high-performance imports that are considered riskier to insure
- damaged parts that can be hard to find or expensive to repair or replace.
On top of this, imported car insurance is likely to go the more expensive ‘agreed value’ route. This is where you’ll be paid an agreed-upon amount if your car is stolen or declared a write-off after an accident.
Specialised car insurance for imported cars
Going with specialised coverage can be a wise move, whether you choose to import your car privately or through an importation service. Specialised insurers are considered more experienced in covering imported vehicles and can go the extra mile to protect your out-of-towner vehicle. With these insurers, benefits could include:
- choosing a repairer who specialises in your car’s make and model
- rights to salvage and retain rare or expensive damaged parts
- coverage for extensive modifications and racing or motorsport events
- lifetime repair guarantees, including for rare or non-standard parts.
Keep in mind, though, that it can be slim pickings when it comes to specialist car insurers. The Insurance Council of Australia currently lists only nine insurers who offer specialised cover for imported cars.
One more tip before we move on: if you’re going through an importation service, it’s important for you to know whether the car you’re looking at has been imported privately. You can usually check this via the Personal Property Securities Register for as little as two dollars.
What are the costs involved with importing a car into Australia?
As you may have guessed by now, importing a car makes buying one from a dealership seem like a leisurely, mid-afternoon Maccas run. It involves a decent amount of paperwork, getting past the red tape and some loosening of the purse strings. Speaking of which:
Costs associated with importing a car
Why is car insurance for imports more expensive?
A locally purchased car is likely to come with a lower cost of car insurance than an imported vehicle.
Here are a few of the reasons imported car insurance is higher.
Legal requirements
Imported cars are designed to meet the standards of the country they were made for. For this reason, modifications may be needed to meet legal requirements in Australia. Anytime a vehicle has a modification, insurance costs can increase. This is because modifications tend to increase the value of the car, which can make it more expensive to insure.
Higher risk
Some imported cars might have been modified for performance. That means insurers treat them as more likely to be involved in a high-speed accident, so this can affect the cost of your car insurance.
Cost and availability of parts
Spare parts and repairs for imported cars are often more expensive, and in some instances, the parts might not be readily available. These additional costs are considered when calculating your premium.
Lack of competitive policies
Not all insurers regularly cover imported vehicles. This means that your car could fall into a default high-performance category purely because there’s no other category to place your car into.
Tips to reduce premium costs for imported cars
You may have more limited insurance options than a domestic car, but there are still ways you can save on your premium for your imported vehicle:
- Look for discounts or deals, which you might find by taking out a policy online.
- Insurers might look favourably on efforts you make to reduce the chance of your car being stolen. For example, keeping the car in your garage and equipping it with a car alarm and immobiliser might reduce your premiums.
- An approved defensive driving course could lower your premiums with some insurers.
- You might be able to choose restrictions that make a policy cheaper. This could include restrictions on the age of drivers.
What should I consider when importing a car to Australia?
Before you take out car insurance on your import, there’s some admin and paperwork you’ll need to organise, courtesy of the Department of Infrastructure, Transport, Regional Development, Communication and The Arts.1For more information, see Department of Infrastructure, Transport, Regional Development, Communications and the Arts – 8 steps to importing a vehicle Here’s what that can look like:
Check the eligibility
First, you can check the eligibility of the car you’d like to import. Doing the government-recommended eligibility assessment can help point you in the right direction and tell you what kind of approval you might need.
Do your homework
Measure twice, cut once, they say. Research timeframes, costs, documents you’ll need, and other potential risks to help ensure you don’t run into any major roadblocks.
Get approvals
All vehicles need a vehicle import approval from ROVER (Road Vehicle Regulator) prior to entering Australia. You can do this through the official ROVER website.2For more information, see Department of Infrastructure, Transport, Regional Development, Communications and the Arts – ROVER When the ROVER approval rolls in, it might be accompanied by conditions for the use of your imported vehicle. This will come in handy after you tackle the next steps: shipping and customs.
Prep for shipping and customs
Before shipping, your vehicle will need a thorough cleanout of materials and potential biohazards that can show up when it goes through customs and quarantine – think muddy tyres, asbestos insulations and air-conditioning gas.
Meet Aussie standards
Once it receives a clean bill of health, it’s time to modify your import in line with the ROVER approval. For vehicles manufactured after 1 January 1989, you’ll need to have this done by a registered automotive workshop. You might then need to have your vehicle tested to ensure it’s compliant.
Register your ride
An entry in the Register of Approved Vehicles might be needed to legitimise your vehicle in Australia. Following this, you’ll also need to register the vehicle with your state or territory’s transport authority, so you can show if off on public Aussie roads without breaking the law!
Brush up on Road Vehicle Standards laws
The Road Vehicle Standards Act 2018 has officially replaced the Motor Vehicle Standards Act 1989. This new framework is one of the biggest legislative overhauls of road vehicle regulation in over 30 years, and lays out the standards required for the 21st century across Australia.
Did you know?
- Most vehicles are imported by large manufacturers that ensure the cars meet minimum safety standards in Australia.
- Registered automotive workshops can import a limited range of used vehicles.
- You can apply to import a vehicle as an individual but first review the Eligibility Assessment for what is required.
- If you’re importing a car without the assistance of a registered automotive workshop, then you’ll also need to arrange shipping, get clearance from customs, meet Australian quarantine requirements, and register the vehicle.
How do I find the right car insurance for imported cars?
Not all car insurers offer policies for imported vehicles. So, before your import makes its way to Australia or you buy a used one that was previously imported, make sure to do some research on your car insurance options well in advance.
While some of the larger insurers do offer coverage for imports, often choosing a specialist insurer who concentrates on imported or modified cars can work out better. This is because these non-standard insurers often have more categories for specialty types of vehicles.
A smart approach could be to get some comprehensive car insurance quotes from regular providers, then compare them to some quotes from specialist providers.
As well as considering the price point for the two, be sure to check the conditions of the policy. Specialist insurers often have a variety of extra benefits that standard providers don’t.
Helpful tip
If your privately imported car wasn’t cheap, then an agreed-value policy might be worth considering. It can provide cover for the original price of your car if it gets written off or needs extensive repairs. Yes, these policies are usually a little more costly, but they can provide peace of mind for a car that could be difficult to replace.
Toby Hagon
Motoring Journalist
Frequently asked questions
What is the 25-year-old rule for car imports to Australia?
On 1 July 2021, Australia introduced new Road Vehicle Standards laws, which made it easier to import cars that are more than 25 years old.
Say you manage to catch wind of a stock JDM Supra from the 90s. You successfully enter it on the Register of Approved Vehicles. You’ll also receive permission to import the car from its country of origin, if needed.
There’s a catch, though. The car should not have been significantly modified in the past 25 years. This can include modifications to the body, chassis, drivetrain, brakes or steering.
Bear in mind, it’s possible that your state or territory will deny your vehicle registration, especially if it’s a left-hand drive vehicle. So, it might save your dream from being crushed if you look up your state or territory’s rules beforehand.
What are the Australian Design Rules (ADRs)?
When it comes to researching modifications you might need to meet Australian vehicle standards, a good place to start is the ADRs. These are national vehicle standards designed to protect you, your vehicle, and the environment by focusing on vehicle safety, anti-theft and emissions.3For more information, see Department of Infrastructure, Transport, Regional Development, Communications and the Arts – Current Australian Design Rules
Currently in their third iteration, the ADRs consist of 113 rules that specify requirements for anything from head restraints to anti-theft locks to external noise. For imported vehicles, following the ADRs is more likely to involve:
- headlight adjustments to suit left-hand traffic
- installing seat belts and airbags to meet Australian safety standards
- adding emission-control devices to meet Australian emissions standards
How long does it take to import a car from Japan to Australia?
From the looks of things, Aussie motorists tend to like a little wasabi with their wombat stew. Japanese imports are thought to be a hot buy down under, particularly due to the lack of availability of certain models in local dealerships. In fact, Australia imports most of its cars from the Land of the Rising Sun.
Generally, shipping an import from Japan to Australia can take around 20 to 30 days. Of course, this can vary when considering other factors such as the ports of origin and destination.
How can I find insurance for my imported car?
Wherever your car is from, the right kind of cover can be handy when you’re cruising on Aussie roads. Explore a range car insurance policies with iSelect and get the protection your import needs!
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