Imported car insurance in India is not a separate category but part of standard motor insurance, governed by the same regulations under the Motor Vehicles Act. The key differences lie in premium cost and underwriting, as imported cars—like CBU and CKD models—come with higher repair expenses, limited spare parts, and specialised servicing needs. While coverage remains the same as domestic vehicles, owners of imported cars must carefully choose comprehensive policies with suitable add-ons to ensure complete protection for their high-value vehicles.
Owning a luxury car, a sports car, or having old classics are dreams for many car enthusiasts. Whilst India has a huge automobile manufacturing industry in the country itself, many cars are still being imported to India. These imported cars are considered expensive due to the import duty, foreign manufacturing, expensive parts, and a general high price tag. While buying car insurance for imported cars has a similar process to buying domestic car insurance, there are subtle differences that you can see between the two, and through this article, those differences and considerations will be clarified.
What is Imported Car Insurance in India?
There is no separate “imported car insurance” — it falls under regular motor insurance, which is legally mandatory for all vehicles under the Motor Vehicles Act in India. However, insuring imported cars such as CBU (Completely Built Unit) and CKD (Completely Knocked Down) models is usually more expensive due to higher repair costs, limited spare parts availability, and specialised servicing requirements, leading insurers to apply special underwriting and higher premiums for imported cars.
What Does Imported Car Insurance Cover?
Car insurance for imported cars is the same as any other car insurance, and covers damages similar to a normal car insurance policy. While a TP imported car insurance policy is mandatory in India, it is recommended to insure your imported car with a comprehensive car insurance policy along with add-ons, as it will cover:
- Accidental damages
- Damages caused to your imported car because of a natural disaster, man-made hazard or theft.
- Total loss (damage of the imported car beyond repair)
- Personal Accident Cover
- Coverage as per add-ons
Imported Car Insurance vs Normal Car Insurance: Key Difference
The key difference between imported car insurance and normal car insurance lies in cost and underwriting, not coverage. While both offer the same types of protection—own damage, third-party liability, and comprehensive cover—imported cars attract higher premiums due to expensive parts, specialised repairs, limited service centres, and higher declared value. In contrast, domestic cars are easier and cheaper to insure because parts and service networks are readily available.
Why Is Car Insurance for Imported Cars More Expensive?
Car insurance premium is calculated primarily based on IDV (Insured Declared Value), and other factors like repair costs, theft risk, location, make and model of the car, etc. Imported cars have a higher price tag and are more expensive to repair. These cars also have a high theft risk and do not have services as readily available as those for other cars. Therefore, due to them being expensive, difficult to find spare parts, higher vulnerability, and expensive repairs, imported car insurance is more expensive than a domestic car insurance policy.
How to Buy the Best Car Insurance for Imported Cars?
You can purchase imported car insurance for your prized possession easily at Coverfox. Just follow these simple steps:
- Click on the Insurance Tab, then select Car Insurance
- Enter your imported car details
- Select your imported car model
- Compare prices from different insurers
- Select what suits best for you best and proceed to purchase
- Your imported car insurance policy will be emailed to you after payment.
Pro Tip: Make sure you opt for comprehensive car insurance and select add-ons like Zero Depreciation and Engine Protection Cover to ensure you completely safeguard your prized possession.
Note: Imported Cars may require additional documentation like a Sale Certificate and Import Duty Papers as per the insurer’s requirement.
Tips Before Purchasing Car Insurance for Imported Cars
Before purchasing car insurance for an imported car, consider these key tips to ensure proper coverage and value for money:
- Compare insurers experienced in covering imported vehicles.
- Opt for comprehensive coverage over third-party only, as imported cars are expensive to repair.
- Select the optimum Insured Declared Value (IDV), finding the sweet spot that gives the best premium price without compromising on value.
- Consider opting for Higher Deductibles to lower car insurance premiums for imported cars.
- Check availability of authorised service centres.
- Verify if spare parts and repair costs are covered under the imported car insurance policy.
- Opt for add-ons like zero depreciation and engine protection.
- Understand claim procedures and documentation requirements thoroughly.
Final Thoughts
While imported car insurance in India operates under the same legal framework as domestic car insurance, it differs significantly in cost and premiums. The higher premiums stem from costly spare parts, specialised repair needs, and limited service availability. When choosing a policy, owners should consider comprehensive coverage, accurate IDV, trusted insurers familiar with imported models, and add-ons that protect high-value components—ensuring their premium imported vehicle gets the protection it truly deserves.
Articles to Read:
Importing Foreign Cars to India – Procedures and Regulations
10 Simple Steps to Reduce Car Insurance Premium
Is high IDV better in car insurance?
Frequently Asked Questions
Can I insure a car that has been imported as a used vehicle?
Yes, imported used cars can be insured in India, but insurers may require additional documentation, such as import papers, vehicle valuation, and registration proof, before issuing the policy.
Are imported cars always more expensive to insure?
Generally, yes. Imported cars attract higher premiums due to costly repairs, limited spare parts, and higher risk exposure compared to locally manufactured vehicles.
Is Third-Party Liability Insurance sufficient for imported cars?
No, third-party cover only fulfils the legal requirement. Comprehensive imported car insurance is strongly recommended to protect against damage, theft, and expensive repairs.
Do insurance companies offer special discounts for imported cars?
Discounts are rare for imported cars since they are high-value and high-risk assets, though some insurers may offer limited benefits for safe drivers or anti-theft devices.
Do imported cars have different claim processes?
The claim process remains the same, but it may take longer due to part unavailability or specialised repairs, especially when sourcing components from abroad.
