Imported Car Insurance
Imported cars have become increasingly popular in Ireland.
Imported vehicles are assessed differently by Irish insurers due to specification variance, parts availability, and documentation risk. Drivers are attracted to the greater choice, higher specification options, and better pricing that is often available. But one thing sometimes gets overlooked: imported car insurance. Not all insurers in Ireland cover imported cars. So, buyers should know that they may need specialist insurance policies.
In many cases, people buy imported cars from used-car dealerships in Ireland. Alternatively, a person may have moved to Ireland from abroad and brought their car. To drive the car on Irish roads, it must be registered as an import. Also, it needs to be fully tax-compliant to get specialised imported-car insurance policies.
Imported cars are classified in two ways: grey imports and parallel imports. Grey imports are cars that originate from non-EU countries, such as Japan and the UK. Parallel imports are cars that were built for the EU market.
What is An Imported Car?
An imported car is one that has originated in another country and has been brought to Ireland either for sale or use by its owner.
All imported cars are liable for Vehicle Registration Tax (VRT) in Ireland. If a car is purchased from a second-hand car dealership, the dealer will usually have already done this. If you have imported your own car from another country while moving to Ireland, then you are liable for the registration and payment of VRT to the Revenue Commissioners.
Do Imported Cars Need Special Insurance?
Yes, most imported cars require specialist insurance. This reflects issues related to safety and environmental standards in the country of origin, the vehicle specification, and the car's high performance. Insurers will want to establish whether it is a Grey Import (from a non-EU country) or a Parallel Import (from an EU country).
What are the Different Types of Imported Cars?
Understanding the country of origin is crucial when buying and planning to insure an imported car. For registration purposes, there are two classification types for foreign cars: Grey Imports and Parallel Imports.
Grey Imports
A Grey import includes imported vehicles that were built and originally sold in countries outside the European Union, such as the UK, the USA or Japan. The term Grey Imports reflects the fact that an insurer cannot be completely sure about the safety standards of cars designed for other markets.
Parallel Imports
Parallel imports include cars designed specifically for the EU market. Safety and environmental standards in car manufacturing, testing and design are standardised across the European Union. A car from another EU country will have passed the same safety and environmental tests as in Ireland.
Difference Between Personal Imports and Dealer Imports?
The main area in which personal imports differ from dealer imports is in relation to documentation clarity and the origin of the vehicle.
Generally speaking, vehicles that have been purchased from and sold by well-established Irish Dealerships represent less documentation risk to Insurers than those that were personally imported by their owners. For the most part:
- Irish Vehicle Registration Tax (VRT) has already been paid
- A valid Irish number plate has been issued
- All relevant import & Customs documentation has been completed
- Specifications of the vehicle are clearly defined at the time of quote
These elements combine to create fewer underwriting risks for insurers and generally allow for more ease of obtaining insurance coverage; however, the cost of such coverage will ultimately be dependent upon the specifics of the vehicle being insured as well as its overall risk profile.
When someone buys a vehicle outside Ireland and brings it back, it can make the insurer's job harder.
Insurers may review:
- Whether the foreign registration documents provided by the seller are complete and reliable.
- Whether there is a lack of documentation of past ownership or service history.
- Whether specifications vary significantly from those of the equivalent Irish market vehicle.
If documentation is missing or hard to check, insurers might be less likely to offer coverage. This can lead to higher premium rates or increased policy excess amounts. Additionally, insurers may require specialised policies and/or specific documentation related to valuation.
The difference between a personal import and a dealer import is primarily due to vehicle Registration Tax and registration. Usually, when you buy an imported car from a dealer, the dealer has already paid the VRT before the customer purchases the car.
How Much Does Imported Car Insurance Cost?
Imported car insurance is generally higher than standard car insurance in Ireland. This is due to several factors, including knowledge of safety and manufacturing standards in the country of origin, the availability and cost of spare parts that may need to be replaced, the vehicle’s age, and whether it is left- or right-hand drive. Each quote is highly personalised to the vehicle and its owner. It’s highly advised to shop around between providers to find the most appropriate quote for your car.
What Factors Affect Imported Car Insurance Costs
Imported cars can come with a lot of baggage. They may have unusual or high specifications, poor historical records, or use hard-to-find parts. Here are some of the main factors that will affect insurance costs.
Country of origin: Non-Irish market manufactured vehicles can differ in specification, emission standards, or required safety equipment. As a result of limited Irish claims data for specific import types, risk modeling by insurers can become less accurate.
Import type: Is it a Grey Import from a country outside the European Union or a Parallel Import from another European country? Both have an impact on the premium that will be quoted.
Right-hand vs. left-hand drive: Cars with left-hand drive often command a higher premium due to safety considerations on Irish roads, which are designed for right-hand drive. Cars from the US often fall into this higher-risk category.
Vehicle specifications: So-called “muscle cars” from the US (for example) receive higher premiums as they are designed to be of a higher engine specification than others. These might include popular models such as Ford Mustangs or Dodge Challengers.
Parts availability: Many imports use parts that are not readily available in Ireland, making it difficult to repair an import after accidental damage.
Vehicle value and replacement cost: Imported cars often have specifications that are difficult to match when replacing them after an accident or theft.
Theft risk: Many high-value imports attract the attention of thieves for parts such as catalytic converters or for the car itself. This unwelcome attention drives premiums higher.
Driver age and experience: As with all motor insurance, the cost of premiums is directly correlated with a driver’s age and experience. If the owner of an imported vehicle is young or has recently moved to Ireland without a documented driving history, premiums will rise accordingly.
Driving record and claims history: A healthy no-claims bonus will always help when negotiating premiums. If your driving record is from another country, make sure to have a documented history of your insurance experience abroad.
Security features: Adding immobilisers, alarms, and other safety features to your vehicle can help reduce premiums for your imported car insurance in Ireland.
Storage location: If you don’t have a secure driveway or garage, this can affect your insurance premium. Adding a gate or security lighting to your driveway can improve your rating.
Import documentation completeness: You must have completed all customs, VRT and registration documentation to avail of specialised insurance
What Insurance Cover Do You Need for an Imported Car?
To drive legally in Ireland, you will need insurance cover on your imported vehicle that matches the insurance cover for standard vehicles in Ireland.
There are three types of cover:
- Third-party
- Third-party Fire and Theft
- Comprehensive
Third-party cover is the legal minimum level of car insurance and protects against costs for damage to property, other vehicles and injuries to other people in the case of an accident.
Third-party Fire and Theft includes everything in third-party cover and protects the policy owner’s vehicle against fire and theft.
Learn more about third-party fire and theft insurance and how it works.
Comprehensive cover is the highest level of cover and protects against the cost of damage to your own car, fire and theft and all third-party liabilities.
To obtain insurance for an imported car, you must inform the insurance provider that the car is an import and then provide the following details:
An Irish registration number: you’ll get one after you pay your Vehicle Registration Tax (VRT).
VRT: Payment of Vehicle Registration Tax is essential for imported cars.
NCT: This is a certificate of roadworthiness for cars over four years old and issued by the National Car Testing Service.
Driving licence: A valid Irish or recognised foreign driving licence.
Driving and Insurance history: documentation detailing your previous driving and insurance experience.
How Does VRT Affect Imported Car Insurance?
You cannot finalise insurance until VRT is completed. VRT is the registration tax that’s payable when you import a car into Ireland. It’s an entirely separate payment to your insurance premium and is legally required. Dealerships generally manage VRT payments, but if you have imported a car yourself, then you are required to complete the VRT process.
How Do I Complete VRT?
Registration for VRT purposes is carried out by the National Car Testing Service on behalf of Revenue. You are obliged to make an appointment with the NCTS within seven days of the vehicle’s arrival in Ireland, and you must complete the registration within 30 days of its arrival. The vehicle will be examined at the NCTS centre and the tax payable will be calculated. Once this is paid, the vehicle’s Irish registration number will be issued.
Documentation needed:
- The vehicle’s foreign registration certificate.
- Confirmation of the levels of C02 emissions of the vehicle.
- Confirmation of NOX emissions.
- A passport or driving licence.
- A completed Vehicle Purchase Details form (VPD).
- An invoice showing the purchase date.
- Confirmation of the vehicle owner’s address (eg, a utility bill).
- Proof of PPSN of the vehicle owner.
- Evidence of the date of entry of the vehicle into Ireland.
Once the VRT is paid and a registration number is issued, a driver can apply for imported car insurance.
Imported Car Insurance FAQ
Yes, classic car insurance is available for imported vehicles as long as the vehicle is over 25 years old, registered to the owner and used as a second vehicle.
Yes, an owner of an imported car should use a specialist insurer. It is strongly advised to review several specialist imported-car insurers to compare quotes and manage your costs.
Yes, the UK is among the countries with the highest number of imported vehicles into Ireland. You will need to produce the car’s V5C, the UK’s registration certificate.
No. Imported car insurance is a specialised area and not all providers will cover it. Make sure to shop around to compare experience and service from different providers.
Yes, Japanese imports can be more expensive to insure because they are classified as grey imports. These are cars imported from outside the European Union. They also frequently use hard-to-source parts and sometimes lack information about their driving history.
Yes, you can transfer your no-claims bonus to an imported car in the same way you would with standard insurance.
VRT is a legal requirement for all cars imported into Ireland. You cannot obtain insurance cover until your VRT is paid and an Irish registration number is issued.
Yes, it is strongly advised to shop around for insurance quotes before buying an imported car, as certain models may incur higher-than-expected premiums or be difficult to insure.
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