Imported Vehicle Insurance Guide
Imported Vehicle Insurance Guide
Insuring an imported vehicle in Australia requires some additional consideration compared to locally-purchased vehicles. This guide covers everything you need to know.
Types of Insurance Required
1. Compulsory Third Party (CTP) Insurance
CTP insurance is mandatory in all Australian states and territories. It covers personal injury claims if you injure or kill someone in a motor vehicle accident.
In Western Australia, CTP is administered by the Insurance Commission of Western Australia (ICWA) and is included in your vehicle registration fee. You do not need to arrange this separately.
2. Third Party Property Damage Insurance
This covers damage you cause to other people's property (vehicles, fences, buildings). It is not compulsory but strongly recommended.
3. Comprehensive Insurance
Comprehensive insurance covers damage to your own vehicle as well as third party property. This is the most complete level of cover and is recommended for imported vehicles, especially rare or high-value models.
Challenges with Insuring Imported Vehicles
Not all mainstream insurers will cover imported vehicles, particularly:
- JDM (Japanese Domestic Market) vehicles
- Grey imports (vehicles not originally sold in Australia)
- Modified vehicles (even if modifications are ADR-compliant)
- Rare or exotic imports
Common challenges include:
- Difficulty establishing market value
- Limited repair parts availability
- Unfamiliarity with the vehicle model
Insurers That Cover Imported Vehicles
Several specialist insurers in Australia cater specifically to imported and enthusiast vehicles:
| Insurer | Notes |
|---|---|
| Shannons | Specialist classic and enthusiast vehicle insurer |
| Hagerty | Collector car insurance, agreed value policies |
| Lumley Special Vehicles | Specialist imported vehicle cover |
| Club 4x4 | Off-road and 4WD specialist |
| Mainstream insurers | Some will cover imports — check individually |
Tip: Always get multiple quotes and ensure the policy covers the agreed value (not just market value) for rare imports.
Agreed Value vs Market Value
- Agreed Value: You and the insurer agree on the vehicle's value at policy inception. In the event of a total loss, you receive this agreed amount. Recommended for rare or appreciating imports.
- Market Value: The insurer pays what the vehicle is worth at the time of the claim. This may be lower than what you paid, especially for rare models.
Tips for Getting Insurance
- Get your vehicle appraised — a professional valuation helps establish agreed value
- Join a car club — many specialist insurers offer discounts to club members
- Provide full documentation — import approval, AVV certificate, modification records
- Compare specialist vs mainstream — specialist insurers often offer better terms for imports
- Consider usage restrictions — some policies limit annual kilometres or require the vehicle to be garaged
Need More Information?
Contact WAAVV for guidance on the import process. We can also recommend insurance specialists familiar with imported vehicles.