Car Insurance for Imported Cars – A Comprehensive Guide

Rehan
Car Insurance for Imported Cars - A Guide for Understanding!

For most people, a car is simply an asset that they invest in for functional purposes. However, there are some, who love cars and are willing to spend more than usual for the car of their dreams. If the car is not available in India, they take the effort of importing the car all the way from a foreign country. The costs for the same can be quite high. Regardless of how expensive or precious the car is, if it is to be driven on Indian roads, it should be covered with a car insurance policy. How does car insurance work for imported cars? Read on to find out. 

Insuring an imported car 

Firstly, one must note that there is no separate car insurance policy for imported cars. Insuring such a car requires a similar set of processes and documents. However, the nitty-gritty of buying a car insurance policy for an imported car may differ, since it would be quite expensive. Furthermore, additional documents might be required to ensure the authenticity and the legality of the car.

Here are some things to note when buying car insurance for an imported car: 

  • The premium would be higher 

Car insurance prices are calculated on the basis of the market value of the vehicle. An expensive car yields a higher premium, while a low-priced car yields a lower premium. Since the market value of an imported car would be usually high, the premium also tends to be higher. 

Another reason the premium could be higher is that the costs for the repair of an imported vehicle tends to be heavy. In case of replacement, the spare parts may be imported as well. This increases the insurer’s liability to a certain degree, and hence, they may charge a higher premium. *

  • The insurance cost does not considers the acquisition cost 

Getting a car imported to India incurs an altogether different set of expenses, such as transportation fees and customs duty, aside from the purchase costs. When you are insuring such a car, the car insurance prices are calculated on the basis of the purchase price. The acquisition cost of the car is not considered. 

This point is also to be remembered in regard to repair and replacement. If any spare part has to be imported for repairs, the insurance plan will only compensate for the retail costs of the parts. Shipping charges may be covered in some cases. The rest of the charges will have to be borne by you. *

The mandatory car insurance policy only provides financial protection against third-party liabilities. If anything were to happen to your precious four-wheeler, the basic policy will not be able to cover it. 

The ideal option is to opt for a comprehensive plan along with suitable add-ons. To gauge how much the premium of such a plan can be, you can use the car insurance calculator. Popular add-ons that would increase your imported car’s protection include zero depreciation cover, engine protection cover, consumables expenses, 24/7 emergency assistance, and so on. *

* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.


 [AP1]https://www.bajajallianz.com/blog/motor-insurance-articles/how-motor-insurance-add-on-covers-can-benefit-you.html

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