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Reducing Insurance Premium in the Case of Imported Cars |
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Wednesday, 27 May 2009 |
A lot of us dream of possessing those stylish imported cars which recently hit the market. One must realize that while the car itself may not be very expensive the other expenses related to it, such as its insurance premiums etc may add on to the total cost of the car, which in the end could burn big holes in our pockets.
Car insurance companies label imported cars as unsafe as compared to domestically manufactured cars. This may not necessarily be due to the car being of a lesser quality, but merely because it has been designed keeping in mind the requirements of another nation, and may not be suitable in a foreign country, thus creating unforeseen risks that a local car doesn’t. Therefore, the cost of availing a car insurance policy tends to be greater in case of an imported car than a car that is produced in the same nation being discussed. The cost works out to be 25%-30% more than the cost of insurance on a domestically produced car, and this percentage increase depends upon a number of predetermined factors.
One of the reasons why a greater premium is charged on imported cars is because in case of an accident, an imported car works out to be more costly to repair than a domestically produced car, since it tends to be more expensive, and its spare parts are also expensive and difficult to obtain.
One way to reduce the extra charge is to check out a car owner’s club in your neighborhood. From this source, you can seek help regarding the import procedures. Moreover, most of these clubs have tie-ups with insurance companies, and becoming a member of such an association can help you to discover the best schemes available that will help in reducing the costs of obtaining insurance for your car. Being a member of such a club is also useful since you will be eligible to avail of any discounts that the insurance company extends to the club.
Another method to reduce the cost of the car insurance policy is to avail of the no-claim bonus scheme, as long as you have not accepted any compensation from the scheme as yet. A no claim bonus allows you to apply for a bonus from the insurance company, as long as you have not applied for any kind of remuneration from the policy. In such cases, the company often awards a bonus to the insurance holder in the form of certain discounts, and such a scheme can come in useful if you need to get your imported car insured.
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