Import Insurance

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UK import insurance is car insurance specifically designed for vehicles that have been imported into the UK from another country. These vehicles are often not originally manufactured for the UK market and may have unique specifications or modifications.

Here’s why you might need specialist import car insurance:

Higher Risk:
Imported cars, especially those from outside Europe (grey imports), can be considered higher risk due to factors like higher performance, unique parts, and potential modifications.
Specialized Needs:
Imported car insurance may offer additional protections like laid-up cover, reinstatement cover, or the ability to use a specialist garage for repairs, which standard policies might not include.
Difficulties with Standard Insurance:
Standard insurance providers might not be willing to cover imported vehicles due to the added complexities and potential challenges in finding replacement parts or getting them repaired.

How it works:

1. Registration:
Before obtaining insurance, you’ll need to properly register your imported car with the DVLA after informing HMRC and paying any applicable VAT or duty.
2. Specialised Policies:
Specialist insurers for import cars offer policies tailored to the unique characteristics of imported vehicles.
3. Increased Costs:
Import car insurance often comes with higher premiums compared to standard policies due to the higher perceived risk.
4. Additional Information:
You may need to provide more detailed information about your car, including its specifications and any modifications, to the insurer.
5. Individual Vehicle Approval
For grey imports, the car may need to be tested under the government’s individual vehicle approval scheme to ensure it meets UK road standards
Importing goods into the UK: insurance considerations
Businesses importing goods into the UK face a range of risks, from the moment products leave their origin country until they reach their final destination within the UK. Securing appropriate import insurance coverage is crucial to mitigate potential financial losses arising from loss, damage, theft, or liability issues.

Key types of import insurance
Marine Cargo Insurance: This is a cornerstone of import insurance, providing comprehensive protection against various risks during transit by sea, air, road, or rail. Coverage extends to the physical loss, damage, or theft of goods throughout the entire journey, including incidental storage according to Macbeth Insurance Brokers. Policies can be tailored to specific needs, covering a wide range of goods from raw materials to finished products.
Goods in Transit Insurance: While often included within Marine Cargo policies, goods in transit insurance focuses on protecting goods transported domestically. This might be relevant for the final leg of an imported product’s journey within the UK.
Trade Credit Insurance: Protecting against the risk of non-payment by customers is critical for businesses operating on credit terms. Trade credit insurance safeguards against losses arising from insolvency, protracted default, or other credit risks, including those associated with exporting overseas says Rowlands & Hames. It provides peace of mind when extending credit, potentially improving access to funding against accounts receivable.
Product Liability Insurance: Importers have strict liability under the Consumer Protection Act 1987 (CPA) for injuries or damage caused by unsafe products according to HCR Law. This coverage protects businesses against claims arising from defective or unsafe imported products, even if they were unaware of the defect. It’s especially crucial for those importing from outside the European Union.
Supply Chain Disruption Insurance: In an increasingly interconnected global economy, supply chain disruptions can have significant financial consequences. This insurance provides protection against lost revenue and other financial impacts caused by disruptions at third-party suppliers or logistics providers, or unforeseen events like trade barriers, goods and labour shortages, or even delays due to customs issues.
Customs Duty and Tax Insurance: While not a standalone insurance product, the cost of customs duties, VAT, and other import taxes and fees forms a significant part of the total cost of imports into the UK. It is important to factor in these costs when calculating insurance coverage requirements. The dutiable value includes the cost of goods, insurance, and freight to the UK (CIF value).
Logistics Insurance:
This term can encompass various insurance types related to transportation and warehousing. It refers to the insurance specifically designed to protect businesses against risks associated with the physical movement, storage, and handling of goods throughout the entire import process.

Additional considerations
Incoterms: Understanding the applicable Incoterms (International Commercial Terms) is crucial as they define the responsibilities and risks for buyers and sellers during international trade. These terms influence who is responsible for insuring the goods at various stages of the journey.
Valuation: For insurance purposes and calculating customs duty, it’s essential to determine the value of the goods accurately. The dutiable value includes the cost of the goods, plus the insurance and freight to the UK (CIF value).
Storage Risks: Insurance coverage should extend beyond transit to include risks associated with storing imported goods, both domestically and potentially during transit in other countries.
General Average: Import insurance policies should address the concept of “General Average,” a principle in maritime law where all parties involved in a sea voyage proportionately share any sacrifices or expenses made to save the ship and cargo from a common peril.
Brexit Impacts: Businesses importing from the EU should be aware of the implications of Brexit on customs procedures and potential changes to tariffs or trade agreements. While car insurance for EU imports may have remained consistent, the overall landscape for import insurance remains subject to potential future changes.
Choosing the Right Coverage: Selecting appropriate insurance coverage depends on the specific type of goods, their value, the shipping methods used, and the overall supply chain structure. Consulting with insurance professionals and obtaining quotes from reputable insurers is recommended to tailor a policy that effectively addresses the unique risks associated with each import operation.
By carefully assessing their import operations and securing appropriate insurance, businesses can mitigate the financial risks associated with importing goods into the UK and ensure the smooth flow of their supply chains.

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Import Insurance

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