Before purchasing an imported car for use in the United States, it is important to understand the risks involved. In particular, there can be a great risk involved when you try to obtain imported car insurance on a car that has been imported to the United States. Many times you will find, that unless strict rules and standards have been met, that it is difficult, if not impossible, to obtain import car insurance.
One reason for such difficulty in obtaining insurance for imported cars is that many times other countries have very different standards for automobiles that might not meet the standards set forth by the United States. For example, three standards that cars imported into the United States must meet that could differ widely from those standards in the country the car is imported from are emissions standards, front and rear bumper standards, and safety standards. A number of countries, for example, do not set emissions standards at the same level as the United States does. An imported car might need to be retrofitted in order to meet the current standards for vehicles in the United States. This could be a costly, and difficult, undertaking.
Another important step to take before many companies will extend a cheap import car insurance policy is to make sure that all customs taxes and fees that are due as a result of importing the vehicle have been paid in full. In order for the imported car to clear customs, the shipping entity’s original bill of lading is necessary. Other necessary paperwork includes the bill of sale, foreign registration, and other needed documentation as stipulated by United States customs.
The United States has a particularly strict policy on emissions. An imported car must have affixed on its engine compartment a label, in English, stating that the vehicle meets all emissions requirements. If no such label exists, and proof of compliance cannot be obtained, or if the car that has been imported is not excluded or exempt from such requirements, the vehicle must be imported by an independent commercial importer.
It is the responsibility of the independent commercial importer to bring the imported car’s emissions standards up to the range specified by the Environmental Protection Agency (EPA). This can be a long, tedious, and costly procedure that, in the case of some vehicles, cannot be correctly performed. Cheap imported car insurance companies will not provide insurance coverage for imported cars if they have not been cleared by the EPA and customs.
Another stipulation for importing a car into the United States and obtaining insurance for imported cars is an undercarriage wash must be performed and certified by a trusted source prior to the vehicle being shipped. This step ensures that pests and other potentially harmful organisms are not inadvertently introduced into the United States where they might have a harmful effect on the native plants and animals there.
There is another potential reason for higher insurance costs for an imported car when compared to a domestic car. Typically, the whole range of parts that could need replacement in the unfortunate event of an accident will likely be much more expensive than a typical domestic vehicle. This is because all parts, whether the needed parts are under the hood or limited to the body, or both, must be imported.
Although the costs of purchasing insurance for an imported car can be as high as 20% more than a comparable domestic car, there are a number of ways to save money of auto insurance for imported cars. Most of these suggestions are best performed before actually purchasing the vehicle. To purchase an imported vehicle without doing the proper research can result in a very high cost to you. These costs could include retrofitting the imported car in order for it to meet the standards of the United States, removing modifications, exporting costs, or costs to have the car destroyed.
It is important to compare the prices of imported car insurance companies. You can do so by entering your information, such as your vehicle year, make, and model, as well as your address, into the relevant areas on the auto insurance web site, you will receive a quote. Obtain quotes from at least three or four companies that offer insurance for imported cars.
Although they can be attractive and add to an imported car’s value, after market modifications can raise the costs of obtaining imported car insurance exponentially. It is, therefore, wise to abstain from pricey modifications that can raise the costs of insurance for your imported car.
Obtaining import car insurance can be a difficult and time consuming task. It can be done, however. Many people enjoy imported cars very much and the extra work involved in obtaining insurance for their imported car ensures that they are able to enjoy driving it knowing that it is legal and safe.
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