Cars
Best insurance for Japanese imports: policy terms to check first
The best insurance for Japanese imports is the policy whose terms fit your car: agreed value, parts, repairer, salvage and mileage. Here is what to check.
The best insurance for Japanese imports is the policy whose terms fit the car: how it is valued, how it is repaired, what happens to the wreck and how your modifications are treated. Two quotes with similar premiums can pay out very differently on the same claim, so the wording matters more than the headline price.
Japanese imports (often called "jap imports" or "JDM cars") include everything from everyday people carriers to rare performance models that were never sold new in the UK. That is exactly why standard cover can fit them badly. This guide sets out the terms to check, so you can hold any quote against them.
What makes car insurance for Japanese imports different?
Most mainstream car insurance is built around UK-market cars with plenty of data behind them: known values, known parts and known repair costs. A grey import often has none of that. Three things follow.
- Valuation is harder. The Financial Ombudsman Service explains that insurers and the Ombudsman lean on specialist motor valuation guides, but those guides do not value older vehicles, usually those over 20 years old. It also says that if a car is an imported right-hand-drive vehicle, this is likely to affect its market value, and an insurer can make a deduction for it if it shows evidence the deduction is fair.
- Parts and repairs are less predictable. Some parts may need to come from Japan, and not every repairer knows the car.
- Many imports are modified. Tuning, wheels, body kits and exhausts are common, and some were done before the car ever left Japan.
So when people search for the best Japanese import car insurance in the UK, the real question is which policy terms deal with those three problems.
Best insurance for Japanese imports: the policy terms that decide a claim
Below are the clauses worth reading on any quote for insurance for Japanese import cars. None of them is right or wrong in itself; what matters is whether it suits your car and how you use it.
Agreed value or market value
Standard policies usually pay the car's market value after a write-off. The Ombudsman describes this as what the car was worth just before it was damaged or stolen. For a car with no reliable guide price, that figure can become an argument.
An agreed value policy works differently. The Ombudsman says agreed value policies require an insurer to pay a previously agreed amount for the vehicle, that they are not common, and that they are usually used for valuable or classic vehicles. If the car is written off under one, the insurer should pay the agreed amount. Insurers may ask for evidence to set that figure, such as photos, receipts or an independent valuation, so ask what they need and whether the value is reviewed at renewal.
| Market value | Agreed value | |
|---|---|---|
| What is paid after a total loss | What the car was worth just before the loss | The figure agreed when the policy started |
| How the value is set | Valuation guides, adverts or an engineer, after the claim | Evidence you provide before cover starts |
| Risk of a dispute about value | Higher on rare or older imports | Lower, as long as the agreed figure stays current |
| How common it is | Standard on most policies | Less common, usually specialist or classic schemes |
Parts clause
Check what the policy says about parts. Some wordings allow non-original or used parts, and some only pay what a part would cost in the UK. On an import, ask whether the insurer will source parts from Japan if needed, who pays for shipping, and whether you are covered for a hire car or other transport while you wait.
Repairer clause
Many policies send the car to the insurer's approved repairer. That is fine for common cars, but you may want a specialist who knows your model. Look for whether you can choose your own repairer, and whether doing so affects your excess or what the insurer pays.
Salvage retention
If the car is written off, the insurer normally takes ownership of the wreck once it has paid out. Some owners want to keep it, either to rebuild it or for the parts. The Ombudsman says it does not think it is fair to scrap a car without warning, and that it will look at whether the owner said they wanted to keep the salvage. Deducting a salvage value from the payout is normally fair, but the insurer should show how it got that figure. Check whether the policy lets you keep the car and how that deduction is worked out.
Limited mileage and garaging
Some specialist policies for imports and enthusiast cars come with an annual mileage limit, and some ask where the car is kept overnight. Make sure the limit fits how you actually use the car and check what happens if you go over it, as wordings differ.
Owners' clubs and track days
Some insurers ask whether you belong to an owners' club. If you are a member, mention it and ask whether it changes the terms. If you take the car to track days, sprints or other circuit events, read the exclusions carefully rather than assuming a road policy covers them.
Do I have to declare modifications on a Japanese import?
Yes. Under the Consumer Insurance (Disclosure and Representations) Act 2012, you have a duty to take reasonable care not to make a misrepresentation to your insurer. In practice that means answering the insurer's questions about the car accurately.
In a 2024 warning, the Financial Ombudsman said undeclared modifications can lead insurers to void policies or reject claims, and that owners should tell insurers about modifications even if they were made before the car was bought. Its examples included body kits, custom paint, exhausts, engine tuning or remapping, larger alloy wheels and tinted windows. It also pointed out that modifications may not be covered in full even when declared, so read what the policy pays for them.
For an import, this is where things often go wrong. The car may have been altered in Japan, or by a previous UK owner, and the paperwork may not say so. If you are unsure what has been changed, an inspection report can help you answer the insurer's questions accurately. Our guide to car insurance for modified cars goes into this in more detail.
When do I need insurance on a newly imported car?
Before you drive it. GOV.UK's import guidance sets out the steps: tell HMRC within 14 days that the vehicle has arrived, get vehicle approval where needed, register and tax it with DVLA, and insure it before you drive it on UK roads. GOV.UK also confirms that third party cover is the legal minimum, and that it does not pay to repair your own car.
On approval, GOV.UK lists cars with 8 passenger seats or fewer (not including the driver) that are over 10 years old as exempt. Newer imports may need approval before they can be registered.
GOV.UK lists the steps like this:
- Tell HMRC within 14 days that the vehicle has arrived (if you bring it in yourself, this includes a NOVA declaration).
- Get vehicle approval, unless the car is exempt.
- Register and tax the car with DVLA.
- Insure the car before you drive it on UK roads, declaring any modifications. If you arrange cover before the car has a UK registration number, tell the insurer and update them once it is issued.
What happens if a Japanese import is written off?
GOV.UK sets out the four write-off categories:
| Category | What it means | Can it go back on the road? |
|---|---|---|
| A | Cannot be repaired; the whole vehicle must be crushed | No |
| B | Cannot be repaired; the body shell is crushed but parts can be salvaged | No |
| S | Structural damage, repairable | Yes, once restored to roadworthy condition |
| N | Non-structural damage, repairable | Yes, once restored to roadworthy condition |
If you keep a Category S or N car, your insurer pays you and sells the vehicle back to you. For Category S, you send the full log book to the insurer and apply for a free duplicate on form V62, and DVLA records the category. For Category N, you keep the existing log book. On a rare import, this is where the salvage clause and the valuation basis combine, so it helps to know both before you ever need them.
What affects the price of car insurance for Japanese imports?
Price still matters, but it follows the terms you choose and the risk the insurer sees. The main factors are:
- The car itself: its value, performance, how hard it is to repair and how attractive it is to thieves.
- Modifications: declared changes can raise the premium, but leaving them out risks the claim.
- The driver: age, experience, claims and convictions.
- Use and storage: mileage, garaging and security.
- Policy choices: agreed value, a higher voluntary excess or a mileage limit all change the price.
Your total excess is the compulsory and voluntary amounts added together, and it is the part of any claim you pay yourself, so it is worth knowing that figure before you agree to it. Our article on how to reduce car insurance without invalidating your policy covers the safe ways to bring a premium down.
Because so much depends on the wording, a specialist broker can explain how the terms on each quote compare for your car. With Kompare, you fill in a short form to get japanese import insurance quotes and a specialist FCA-authorised broker from our panel contacts you with quotes. Kompare does not give advice, so ask the broker to point out the valuation basis, parts, repairer and salvage terms on each one.
If an insurer later treats you unfairly over a valuation or a claim, you can complain to the insurer first and then take it to the Financial Ombudsman Service, which is free to use.