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Car insurance for imported cars: A guide about imported vehicle insurance

Team AckoJan 17, 2024

You may be just an auto enthusiast or a purist. Acquiring a prized possession such as a luxury or the fastest sports car could be your dream. Some of these vehicles may not be sold, but you can import them and drive them in India.

If you are thinking of importing a car, you need to know that one of the criteria to drive on Indian roads is to insure the imported vehicle. Here is a complete guide on car insurance for imported cars so that you insure your foreign car with the right insurance coverage.

Contents

What is import car insurance?
Insurance for imported cars in India
What does imported car insurance cover?
Imported car insurance vs normal car insurance
Is car insurance for imported cars higher?
Cheapest imported car insurance
Tips before purchasing car insurance for imported cars
Frequently asked questions

What is import car insurance?

There isn’t a specific type of motor insurance known as import car insurance. When you purchase an imported vehicle, it is similar to insuring any other car. However, insurers may find an imported car expensive to repair or replace parts since it is not manufactured in India, resulting in higher insurance costs. That means you may want to find a policy covering an agreed value and not the vehicle's market value.

You may also want to enhance the Comprehensive Car Insurance Policy’s coverage with add-on covers to offset additional repair costs an imported car may require.

Insurance for imported cars in India

All vehicle owners must insure their motor vehicles plying on Indian roads with the Third-party Liability cover (TP). Therefore, you must insure imported cars with the mandatory TP cover in India. However, the Comprehensive Car Insurance Policy is ideal since it includes TP and Own Damage cover components.

Here are insights into car insurance for imported cars.

Choose the optional Comprehensive Car Insurance Policy for broader coverage.
Include car insurance add-ons to widen the scope of the policy.
If required, opt for a higher voluntary deductible for a lower premium.

What does imported car insurance cover?

The vehicle insurance for imported cars is similar to those manufactured and sold in India. The basic requirement is to insure the imported vehicle with the TP plan since it is compulsory as per The Motor Vehicles Act, 1988. If you opt for broader comprehensive insurance, here are the coverage details.

Damage to your car arising due to an accident.
Theft of your imported car.
In case of a Total Loss (damaged beyond repair).
Damage to your vehicle arising from natural calamities (floods, earthquakes, etc.).
Damage to your car arising from man-made disasters (vandalism, riots, etc.).
Losses or damages are covered under add-ons (if you have opted for it).

Imported car insurance vs normal car insurance

Unlike other countries, car insurance in India is based on the approximate market value of the vehicle. Whether it is an imported car or a domestic car, the insurance cost is based on the Insured Declared Value (IDV). But is there a difference between the two? An imported car usually costs more since various expenses are involved in bringing it to India.

You have to pay the customs duty and the transportation cost of the imported car. These costs cannot be considered while calculating the insurance of the vehicle. Therefore, importing a particular car would cost you more than the actual cost of the imported car.

As for the insurance cost, it primarily depends on the manufacturer or the car's market value. Compared to the cost of normal car insurance, the price for imported cars solely depends on the IDV and not on the acquisition cost of the vehicle.

Is car insurance for imported cars higher?

As mentioned, vehicle insurance for a vehicle depends on the IDV. Hence, the cost of import car insurance may be similar to the same make in the country. Also, in case of claims, if any parts are imported for repairs, the insurer may compensate only the retail price of the parts and the shipping charges.

Cheapest imported car insurance

Here are some ways to find the cheapest car insurance for imported cars.

Shop around

With a direct-to-customer approach, digital insurers such as ACKO are transforming how you insure your cars. You can call us or send an email to get a quote instantly. Since all the transactions are online, our operational costs are lower. These savings are passed on to you through low-cost insurance plans for imported cars.

Be realistic

You could be inclined to own an expensive and sleek sports car, but you have to bear the burden of a higher insurance cost. If you still want an imported car, you may consider other than the expensive and fastest ones for an affordable insurance cost.

Take extra security measures

Show your insurer that you are securing your car with an anti-theft device to consider a discount on the premium.

Tips before purchasing car insurance for imported cars

If you are looking to get car insurance for imported vehicles, there are some things you can do to help you buy the right plan.

Opt for the Comprehensive Car Insurance for a wholesome coverage since it covers both Third-party Liability Plan and Own Damage cover components.
When you buy the Comprehensive plan, you also can increase the coverage through the inclusion of add-on covers.
Get car insurance quotes from various insurers to assess the right coverage for your imported vehicle.
By choosing a digital insurer, like ACKO, you get seamless access to your policy and get to execute all transactions online. It helps you reduce time, buy or renew and even raise claims against the policy without hassles.

Frequently asked questions

Here are a few commonly asked questions about vehicle insurance for imported cars

Are foreign cars more expensive to insure?

If you have opted for a higher sum insured, it shall cost you more to insure an imported car. The car insurance premium is mainly influenced by factors, like the market value of the vehicle, your pin code, and year of manufacture.

Can the type of car I import affect the insurance cost?

Yes, the insurance cost varies depending on the make, model, year of manufacture, and location or pin code.

How does the insurer cover the cost of imported replacement parts of the imported car?

Typically, the insurer pays only the MRP and the shipping cost of the import part. However, the insurer does not cover the import tax and other expenses related to importing. Please read the terms and conditions for more details of the coverage for specific claims.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.

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