“Are you making these costly mistakes when insuring your imported car?” Owning an imported car in Australia can be exciting, but it can also be very expensive. These vehicles are not locally manufactured, and insurance providers often consider them a higher risk on Australian roads. However, with the right strategies, you can still find affordable car insurance for imported cars.
In this guide, we will search practical ways to lower the cost of insuring your imported vehicle while ensuring you get the protection you need.
Why Is Insurance for Imported Cars More Expensive?
Before exploring the easiest ways to reduce costs, it is very important to understand why insurance for imported cars is very expensive and difficult.
Here are some key reasons:
- Higher Repair Costs: Imported vehicles have parts that may not be easily available in Australia, which is why repairing can be so costly.
- Limited Availability of Mechanics: Not all mechanics are trained to handle imported car models, which tends to increase labour costs for its repair.
- Higher Theft Risk: Some imported cars are very rare, which makes them a high target for thieves.
- Non-Standard Safety Features: Most of the imported vehicles do not meet Australian safety standards, which is also an important factor in increasing auto insurance risk.
Despite facing these small challenges, you can still get affordable insurance by following these tips.
1. Compare Multiple Insurance Providers in Australia
Different car insurance companies charge different prices for the same car. Some insurers specialize in imported vehicles and may offer better prices. You must use online comparison tools or contact auto insurers directly to get multiple quotes related to imported car insurance because comparing prices can help you find the cheapest deal while still getting the right coverage for your imported auto.
2. Choose a Higher Excess
The excess is the amount you must pay before your insurance covers the rest of the claim. If you choose a higher excess, your monthly or yearly premium will be lower. However, make sure you can afford this amount if you ever need to make a claim.
3. Opt for Pay-As-You-Drive Insurance in Australia
If you don’t drive your imported car very often, consider getting pay-as-you-drive insurance. This type of auto insurance charges you based on how many kilometres you have to drive each year. If you only use your car occasionally, this could be a much cheaper option compared to full traditional insurance.
4. Install Anti-Theft Devices
“Many imported cars are considered at high risk for theft in Australia.”
That’s why installing security devices such as GPS trackers, steering wheel locks, alarms, and immobilizers can make your car safer. Car insurance companies often offer discounts if your vehicle has security features, as it reduces the chances of theft and damage.
5. Park Your Car in a Secure Location in Australia
Where you park, and your car affects your insurance cost every time. Cars parked on the street are at a higher risk of theft or damage, which also leads to higher premiums. If you have a locked garage or secure parking area, let your insurer know. This can help you get a lawyer-priced auto insurance.
6. Maintain a Clean Driving Record in Australia
If you have a history of safe driving without any accidents or claims, imported car insurance companies will see you as a low-risk driver. This can help lower your premium. Avoid speeding tickets, reckless driving, and other violations to keep your record clean and enjoy cheaper car insurance rates over time.
7. Consider Third-Party Insurance In Australia
Comprehensive insurance covers both your car and others, but it is expensive. If your imported vehicle is not very expensive, consider third-party insurance. This type of auto insurance covers damage to other cars but not your own, making it a much cheaper option for lower-value vehicles.
8. Bundle Your Australian Insurance Policies
If you already have insurance policies for other things, such as home or health insurance, consider getting your imported car insurance from the same company. Many insurers offer discounts when you bundle multiple policies together. This can help you save money on both your imported auto insurance and other coverage.
9. Avoid Unnecessary Modifications
Adding modifications like body kits, custom paint, or engine upgrades can make your luxury look better, but they also increase imported vehicle insurance costs most of the time. Modified vehicles are considered riskier by insurers because they might be driven faster or attract more theft. Keeping your imported car in its original condition can help lower costs.
10. Choose an Insurance Company in Australia That Specializes in Imported Cars
Not all Australian insurance companies provide affordable car insurance for imported cars. Some specialize in insuring vehicles from overseas and they offer better rates as compared to the others. Research insurers those who have experience with imported cars, as they are more likely to provide reasonable prices and policies tailored to your specific needs.
11. Maintain a Good Credit Score In Australia
Some insurers check your credit score when determining your premium. A good credit score can show that you are responsible and financially stable, and it can lead to lower insurance rates. Paying your bills on the right time, reducing debt and avoiding late payments can help you to improve your credit score and also save you money.
12. Pay Your Premium Annually Instead of Monthly
Paying for insurance in monthly instalments is convenient, but many car insurance companies in Australia charge extra fees for this service. If you can afford to pay the full premium upfront for the entire year, you can save money by avoiding these additional charges and getting a slight discount.
13. Take Advantage of No-Claim Bonuses
If you haven’t made any claims on your car insurance for a certain period, you may qualify for a no-claim bonus. This discount rewards safe drivers by reducing their premium each year they go without making a claim. Check if your insurer offers this benefit and drive safely to keep your discount.
14. Join a Car Club or Association
Many car clubs in Australia offer special kinds of deals with auto insurance providers. If you own a specific type of imported car, check if there’s a club for it in Australia. Membership in such clubs may make you eligible for exclusive discounts on car insurance, helping you save money on your coverage.
15. Consider Usage-Based Insurance In Australia
Some insurers offer a type of insurance that tracks your driving habits using a small device installed in your car. If you drive safely, maintain a steady speed, and avoid harsh braking, you can get discounts. This option is great for careful car drivers looking for lower car insurance costs.
16. Reduce Your Mileage
“The more you drive, the higher your insurance premium.”
Try to reduce how much you drive each year. Using public transport, carpooling, or working from home can help lower your mileage. Auto Insurance companies often offer lower premiums for drivers who use their cars less frequently.
17. Read the Policy Carefully
Before buying car insurance, carefully read the policy documents to ensure you are not paying for coverage you don’t need. Some policies have extra things like roadside assistance and rental car coverage, which can add to the cost further. Choose a policy that only has what you need to save your money.
18. Ask for Discounts
Imported car insurance companies offer many discounts for various reasons, including being a safe driver, having a good credit score in Australia, or driving a low-risk vehicle. Always ask your insurer about any discounts you may qualify for. Even small discounts can add up and help you save money on your insurance.
Some insurers offer discounts for:
- Senior drivers
- Low-risk occupations
- Long-term customers
- Students with good academic records
Always ask your insurer if you qualify for any special discounts.
Conclusion:
Getting cheap car insurance for imported cars in Australia requires research and smart choices. By comparing prices of different companies while choosing coverage and maintaining a good driving record and also taking advantage of discounts, you can significantly reduce your car insurance costs.
If you’re looking for the best imported car insurance Australia has to offer, start by shopping around and exploring specialized insurers. With the right strategy, you can enjoy driving your imported vehicle without breaking the bank.
