Cars

Car import insurance: how grey, parallel and US imports are insured

Car import insurance explained: how grey, parallel, personal, US and left-hand drive imports are insured in the UK, and the documents insurers ask for.

Car import insurance is standard UK motor cover for a car that was built for another country's market, whether it arrived as a grey import from Japan, a parallel import from Europe, a personal import or a left-hand drive car from the US. The cover itself works like any other car policy, but the import route changes which insurers will quote, what you have to declare and which documents prove the car's spec.

What counts as an imported car?

People use "import" for several different things, and insurers do too. The main routes are:

• Grey imports. Usually a used car bought abroad and brought in privately or by an independent dealer, outside the manufacturer's UK network. Japan is the best-known source because its cars are right-hand drive, but many are models that were never sold here.
• Parallel imports. Usually a new or nearly new car built for another market, often in the EU, and bought outside the UK dealer network. It may look identical to a UK car but have different equipment, lights or trim.
• Personal imports. A car you bring with you when you move to the UK. GOV.UK lists "personal imports" as their own category for vehicle approval.
• US and other left-hand drive imports. American cars and most European cars are left-hand drive, and US cars are built to American rather than European standards.

The reason this matters for imported car insurance in the UK is simple. An insurer prices the risk of a specific car, and with an import it has to work out what that car really is: its engine, safety kit, security and parts supply. The approval paperwork is how it does that.

Car import insurance by route: what changes

Every imported car has to be approved before it can be registered. GOV.UK explains that approval shows "your vehicle meets safety and environmental standards", and the type of approval depends on where the car was last registered.

A few extra rules sit around this:

• GOV.UK says that if a car "was first registered or manufactured more than 10 years ago, you might not need approval", so check the official exemptions before assuming either way.
• Basic IVA "involves a visual inspection and other tests", and you "will not normally need to provide any documentary evidence". Cars outside the listed categories need normal IVA, which is a more detailed inspection with documentary evidence.
• Lorries and goods vehicles over 3,500kg cannot get a GB conversion certificate and need a standard IVA instead.

For a parallel import, the Certificate of Conformity is especially useful because it lets the insurer match the car to a known spec. For a grey or US import there may be no UK equivalent model at all, and that is usually why fewer insurers will quote.

Left-hand drive car insurance: what insurers look at

Left hand drive car insurance is not a separate legal product. It is normal cover where the insurer has been told the steering is on the left. Insurers ask because it is part of the risk they are pricing, and some may not quote at all, so the choice of insurer can be narrower.

The conversion work also matters. Left-hand drive cars are built with headlamps that dip to the right. The MOT inspection manual says it is acceptable for masks or converter kits to be fitted to right-dip headlamps "to temporarily alter the lamp for use in the UK". If you have changed headlamps, the speedometer or anything else to suit UK roads, tell the insurer what was done.

Insurance for American import cars

Insurance for American import cars tends to be the hardest of the import routes to arrange. US cars are left-hand drive, they are not EU-registered, so there is no European Certificate of Conformity, and they go through IVA. Lighting, equipment and parts can differ from anything sold here, so the insurer has less to go on.

None of that stops a US car being insured. It just means the insurer will want more detail.

When do you need insurance on an imported car?

You need cover before the car turns a wheel on a public road. GOV.UK is clear: "Insure your vehicle before you drive it on UK roads." It also warns that you can be prosecuted for using the car on a public road before the import steps are finished, "unless you're driving it to a pre-booked MOT or vehicle approval test". Third party insurance is the legal minimum.

The order of events usually runs like this:

1. Tell HMRC within 14 days. You must notify HMRC through the Notification of Vehicle Arrivals (NOVA) service and pay any VAT and customs duty due before the car can be registered.
2. Get approval. IVA, a Certificate of Conformity, or a GB conversion certificate, depending on the route.
3. Arrange insurance before any drive to a pre-booked test. Ask how the insurer handles a car that has no UK plates yet, as it will need some way to identify it, such as the VIN.
4. Register with DVLA. GOV.UK lists a £55 registration fee, and you tax the car at the same time. You send original documents including proof of approval and the foreign registration certificate (which you will not get back). The V5C "can take up to 6 weeks" to arrive.
5. Update your insurer with the new UK registration once it is issued, so the policy shows on the Motor Insurance Database. You can check this on askMID.

If the car is going to stay off the road for a while, you still need to register it and make a SORN.

What do you have to declare for car insurance quotes for imported cars?

When you ask for car insurance quotes for imported cars, expect more questions than for a UK model. Typical ones are:

• the country the car was built for and the import route
• the date it was imported and whether it has UK registration yet
• left-hand or right-hand drive
• the approval document it has (IVA, Certificate of Conformity, GB conversion)
• the engine, gearbox and trim, especially for models never sold here
• every change from factory spec, from wheels and exhausts to remaps
• mileage, noting whether the odometer reads in kilometres
• security devices and where the car is kept overnight

This is not box-ticking. Under section 2 of the Consumer Insurance (Disclosure and Representations) Act 2012, "It is the duty of the consumer to take reasonable care not to make a misrepresentation to the insurer." If you get something wrong, schedule 1 of the Act sets out what the insurer can do. For a deliberate or reckless misstatement it can cancel the policy as if it never existed and refuse all claims. For a careless one, the remedy depends on what the insurer would have done with the right answer: refuse cover altogether (refunding premiums), apply different terms, or pay only a proportion of a claim if it would have charged more.

An imported car may have been altered before you owned it, so check its history as well as any changes you make. Our guide to how to tell if a policy really covers your mods covers what to check.

Parallel import car insurance and what affects the price

Parallel import car insurance is often the easiest import to place, because the car is close to a known UK model and the Certificate of Conformity proves the spec. Grey and US imports are usually harder. Across all routes, the things that move the price are much the same:

• How well the insurer can identify the car. A clear spec and approval paperwork reduce guesswork.
• Parts and repair costs. Parts shipped from abroad can mean longer, dearer repairs.
• Theft risk and security. Some imports are sought after, so approved immobilisers, trackers and secure parking can help.
• Value. Imports can be hard to value after a write-off, which is why some owners look at agreed value cover. Our guide on policy terms to check for Japanese imports explains how it works.
• Use and mileage. How far and how often the car is driven is part of the risk, as on any policy.
• The driver. Age, experience, claims and convictions count just as they do on any car.

Choices such as a higher voluntary excess change the premium but also what you pay at claim time. For example, with a £250 voluntary excess on top of a £100 compulsory excess, you would pay the first £350 of a claim yourself.

Because only some insurers take on imports, specialist brokers can be useful. With Kompare, you fill in a short form and a specialist FCA-authorised broker from the panel contacts you to talk through your car and arrange quotes. You can get japanese import insurance quotes that way for grey, parallel, personal and left-hand drive imports alike.