Car Insurance for Imported Cars - A Guide Complete

Import car insurance refers to motor insurance tailored to the specific needs of vehicles brought into India from other countries. These vehicles often have higher market value, limited service availability, and costlier repairs. To address these factors, insurers offer standard comprehensive or third-party policies with customised features such as a higher Insured Declared Value (IDV), and add-ons like zero depreciation, return to invoice, or engine protection. Since imported cars involve more complex risks and documentation, having the right insurance plan ensures adequate protection and peace of mind for their owners.

Insurance for imported cars offers wide-ranging protection tailored to the needs of foreign vehicles. It includes:

• Accident Damage: Covers the cost of repairs if your imported car is damaged in an accident.
• Theft: Provides compensation up to the insured's declared value if the car is stolen.
• Natural Disasters: Covers damage caused by floods, earthquakes, storms, and similar events.
• Man-Made Events: Protects against losses due to riots, strikes, terrorism, or fire.
• Transit Damage: Offers cover while transporting the vehicle by road, rail, air, or water.
• Third-Party Liability: Includes protection for injury or property damage caused to others.
• Personal Accident Cover: Optional cover for the owner-driver in case of injury or death.
• Add-On Covers: You can enhance your comprehensive car insurance with options like roadside assistance, engine and tyre protection, or zero depreciation car insurance.

With the right car insurance for imported vehicles, you get financial protection that matches your car’s value.

While insurance for imported cars offers wide protection, certain exclusions apply. It’s important to know what is not covered under your policy:

• Damage caused when driving without a valid driving licence.
• Accidents or losses occurring outside the geographical limits of India.
• Driving under the influence of alcohol or drugs.
• Regular wear and tear, or depreciation due to daily use.
• Costs related to general servicing or routine maintenance.
• Damage resulting from careless or negligent driving.
• Using a personal vehicle for commercial purposes.
• Loss or damage during speed racing, crash testing, or similar activities.
• Damages caused by war, war-like situations, or nuclear risks.
• Claims related to an add-on, if that specific add-on was not purchased.

Understanding these exclusions helps you use your car insurance for imported cars wisely and avoid denied claims.

While both policies follow the same basic structure, car insurance for imported cars often comes with higher premiums. This is due to the unique parts, servicing needs, and higher repair costs involved. The premium is based on the Insured Declared Value (IDV), not the total price paid for the imported vehicle, which may include customs and transport charges. In contrast, normal car insurance typically involves easier servicing and lower repair costs. Since imported vehicles may require specialist garages, having the right car insurance for imported vehicles ensures smooth claims and better protection.

Here are some simple ways to manage the cost of car insurance for imported vehicles:

• Installing certified anti-theft devices may reduce your premium.
• Choosing an imported car that has easier access to spare parts can lower future repair costs.
• Maintaining a clean driving record helps you earn no-claim bonuses over time.
• Selecting only the necessary add-ons will keep your premium more affordable.
• Renewing your policy on time prevents lapses and avoids late payment penalties.

These steps can help reduce costs while keeping your car well-protected.

Finding affordable car insurance for imported vehicles may feel tricky at first—but with a few smart moves, it’s definitely possible. One of the easiest ways to save is by buying your policy online. This helps you skip extra agent fees and often gives access to better premiums and deals.

Tata AIG offers reliable motor insurance plans that can be customised based on your needs. While the premiums for imported cars may be higher due to their value and servicing costs, you can manage the cost by:

• Installing insurer-approved anti-theft devices

• Selecting only the add-ons you truly need

• Keeping a clean driving record

• Using tools like Tata AIG’s car insurance calculator to check premiums in advance

Make sure your policy covers essential risks like theft, accident damage, and third-party liability, without paying for features you won’t use. With the right insurer and careful choices, protecting your imported vehicle doesn’t have to break the bank.

Before you buy car insurance for imported cars, it’s important to keep the following tips in mind:

• Always choose a comprehensive car insurance plan that includes both standalone own damage and third-party liability coverage.
• Look into add-ons such as zero depreciation, engine protection, or roadside assistance for better coverage.
• Compare quotes from multiple insurers to find the most suitable plan.
• Choose a digital-first insurer like TATA AIG to enjoy easy online purchase, renewal, and cashless claim services.
• Make sure the coverage meets the specific needs and value of your imported vehicle.

These tips will help you make an informed and secure insurance decision.

Follow these practical steps to find the best insurance for imported cars:

• Choose a plan that offers both standalone own damage and third-party car insurance, as imported vehicles often have higher repair costs.
• Compare policy features, premium amounts, and claim processes across different providers to make an informed choice.
• Opt for digital-first insurers like TATA AIG, where you can get quotes, renew your policy, and raise claims online.
• Select useful add-ons such as zero depreciation, engine protection and more based on how and where you use your vehicle.
• Check if the insurer has a good claim settlement record and a garage network that supports imported vehicles.
• Carefully read the policy document, especially the exclusions, to avoid issues during claims.

These steps will help you choose reliable and well-suited insurance for your imported car.

Getting the right car insurance for imported vehicles is important to protect your car from damage, theft, or other unexpected events. It’s helpful to compare plans, choose suitable add-ons, and go with TATA AIG for a smooth experience. Make sure the policy fits your car’s specific needs and includes essential coverage. With the right plan in place, you can drive with confidence, knowing your imported vehicle is well protected.

What is the new import policy for cars?

The new SPMEPCI EV import policy allows approved automakers to import fully built electric cars priced over USD 35,000 with a reduced customs duty of 15% (down from nearly 70–110%) for up to 8,000 units annually, provided they commit to local manufacturing investment of ₹4,150 crore over three years.

Which type of insurance is best for cars?

A comprehensive car insurance policy is widely considered the best choice for cars. It covers both standalone own-damage to your vehicle and third-party car insurance, offering full financial protection against accidents, theft, fire, natural disasters, and others.

How much tax for imported cars in India?

Imported complete-built cars typically attract a 70% basic customs duty plus a 40% agriculture infra development cess, resulting in roughly 110% total tax. For electric vehicles, the duty may be reduced to 15% under the SPMEPCI scheme.