Car insurance for imported cars
What is an imported car?
An imported car refers to a car that has been manufactured overseas, and then brought to Australia. There are different types of imported vehicles, such as grey imports (also known as parallel imports), which are cars that have been purchased privately rather than through the manufacturer. These can be harder to insure.
Many cars in Australia are imported. However, if they’re imported through official channels and you purchased it directly from the manufacturer, they won’t be considered a grey import. If you choose to import privately, you will typically need to use a specialised car insurance provider to get cover.
About car insurance for imported cars
Can I get car insurance for privately imported cars?
To get car insurance for an imported car, you may need to search for a specialist insurer. Currently, our comparison service does not compare policies that offer cover for private imports.
When searching for import car insurance options with specialist insurers, you should still read the Product Disclosure Statement (PDS) for the inclusions, exclusions and limitations of the policy. Read the Target Market Determination to understand if the policy is suitable for your needs.
Does car insurance for privately imported cars cost more?
A privately imported car may incur a higher premium than a standard vehicle bought from a manufacturer. A few factors that can affect the cost of your car insurance for these types of vehicles include:
- Modifications. Many import cars are modified for high-performance or need modifications to meet Australian driving standards. These modifications may be expensive to replace or increase performance, which may increase your premiums.
- Specified cover. If you need a specialised car insurance provider, there could be fewer providers available and therefore less market competition which can affect the cost of your insurance cover.
- Cost of parts. If your car is damaged, the cost of replacement parts may be more expensive for imported cars. Since your car will cost more to repair, it may also cost more to insure. These parts can often be difficult to source as well, meaning you’ll need to wait longer times for repairs.
Are Japanese cars more expensive to insure?
If you purchase a Japanese car domestically from a manufacturer who has imported it, you probably won’t require more expensive specialised cover. However, if you purchase a high-performance car from Japan (also known as a JDM car), it will likely be expensive to import and insure. Japanese import vehicles may require modifications to be legally allowed to be driven on Australian roads. High-performance or sports cars also typically incur higher car insurance premiums.
Understanding import cars
How do I privately import cars to Australia?
Before you consider importing a car to Australia, ask yourself some key questions:
- Am I able to import my car? You should consider things like the vehicle’s eligibility, what documentation and approvals you need, and if you can afford the importation costs.
- Do I have approval to import my vehicle? Importing a vehicle requires approval from multiple government agencies. You will need to apply through ROVER for approval to import a vehicle.
- Does my car need to be modified? Your car will need to meet the national design standard (Australian Design Rules) to be driven in Australia. For example, cars imported from America may have the steering wheel on the left and need to be modified.
- What do I need to do to ship my vehicle? You will have to meet certain cleaning requirements to avoid bringing over foreign material such as dirt that could be a quarantine risk. You may also have to do an asbestos check and removal. Once your car has been shipped, you will also have to declare it to customs and pay the relevant fees.
- Can I get car insurance for my vehicle? Check whether you can get specialised cover for your vehicle. If your imported vehicle is considered a classic car, it may come with a higher car insurance cost.
Is it cheaper to privately import cars?
While the base cost of a car could be cheaper overseas, you may also have to pay for importation costs, cleaning costs, and compliance costs to get the car up to the Australian standard. However, if you’re a car enthusiast, you could be more than happy to cover these additional costs.
Is privately importing a car worth it?
Whether or not you decide if importing a car from overseas is worthwhile will depend on you. While you can be the owner of an exclusive vehicle not sold in Australia, it does come with several downsides, including importation costs, potential required modifications, a lack of availability for parts and needing specialised insurance cover. Make sure to consider your options and make the choice that’s right for you.
Meet our car insurance expert, Adrian Taylor
As Executive General Manager of General Insurance at Compare the Market, Adrian Taylor is passionate about demystifying car insurance for consumers, so they have a better understanding of what they’re covered for. Adrian’s goal is to make more information available from more insurers, to make it easier to compare and save.