What You Need To Know When Insuring Imported Vehicles

Posted on Dec 9th 2009, 03:41 pm, under Auto Insurance 101

Buying an imported car usually carries more costs than just the one on the price tag. Insurance for imported vehicles can be expensive, and not all insurance firms provide coverage for them. Like vintage cars, imported cars have special requirements that you'll need to meet. We've made a short checklist of the things you'll need before you can insure an imported car:

1. One of the first things to do is to ensure that your car passes US auto standards, such as safety and emission tests. Some car models brought over from abroad (notably Mexico) may not meet US legal standards, and are therefore ineligible for insurance. You may have to spend on additional improvements for your car to meet these requirements. Consider this before buying any car abroad.

2. Naturally, you'll also need to get your car through US Customs. Before you can get any form of insurance, you'll have to present proof to insurance providers that you paid the necessary duties and taxes to bring your vehicle into the country legally.

3. Your car will also have to get an undercarriage wash before it can be allowed entry into the country. The US Department of Agriculture requires this precaution to prevent foreign pests and weeds from entering our domestic ecosystem. 

4. Remember that if your car fails to meet US standards or any one of the above requirements, it must be sent back, brought into compliance, or destroyed.

5. Unfortunately, many mainstream insurance providers won't insure imported cars. You'll need a firm that specializes in imported vehicles. Imported cars cost more to insure than domestic vehicles because they are usually expensive models, thus raising their premium; their parts are not easily available; their safety standards are usually below the domestic minimum; and fewer companies offer insurance for them, thereby raising the price.