American car insurance explained

Whether it’s a 1960s Ford Mustang or a brand-new Dodge Ram, if you import a vehicle from the US, you may end up paying more for American car insurance. But there are ways you can bring down the cost of your cover.

Our guide takes you through everything you need to know, from the different types of cover available to what you should pay attention to when you compare car insurance. 

Can I insure an American car in the UK?

You can insure a left-hand drive American car in the UK – you’ll need to have at least third party cover if you want to take it for a spin. But you might not be able to choose from a wide range of providers. 

Many car insurance providers might not provide cover for imported American vehicles. Instead, you may need to find a specialist insurer to get protection.

Does it cost more to insure an American car in the UK?

Most of the time, it’ll cost you more to insure an imported American car in the UK, compared with a vehicle with standard right-hand drive. This is because:

• The value of the car may be higher: a classic American car may come with quite the price tag – the higher the value of your car, the more you’ll pay for cover
• The engine may be bigger: US cars typically have bigger engines, which puts them in a higher, more expensive insurance group
• Parts are harder to source: if you’re in an accident and need to repair your American import, it may cost more, as UK repair shops likely won’t have the right car parts to hand
• You may need a specialist mechanic: depending on the make and model of your car, you may need to take it to a specialist to get it repaired, adding to the cost of your claim
• Imported cars may be more at risk of theft: expensive classic cars may be more at risk of theft, pushing up the price of your premium

What levels of cover are there for American cars in the UK?

When picking your American car insurance, you’ll be choosing between:

• Third party: this only covers injuries you cause to someone else and any damage to their property
• Third party, fire and theft: if you take out a third party, fire and theft policy, you’re covered for damage and injury to another person, as well as if your own car is stolen or damaged in a fire
• Comprehensive: with fully comprehensive car insurance, you’re covered for all of the above, plus accidental damage to your car. You’ll also be more likely to have additional benefits, such as lost key cover, personal belongings cover, personal accident cover, windscreen cover, and courtesy car cover

Types of American car insurance

While you can take out a standard annual car insurance policy for your American import, you might find you’re better suited to specialist cover, which includes:

• Classic car insurance: one of the benefits of classic car insurance is that you’ll be able to negotiate an agreed value for your vehicle, meaning if it’s written off, you’ll receive that sum rather than the market value of the car. It may also cost less than a standard insurance policy
• Low-mileage car insurance: if you don’t intend to drive your American import very frequently, you could consider a cheaper low-mileage car insurance policy
• Statutory Off Road Notification (SORN) car insurance: if you don’t intend to drive your American car for extended periods of time, you could issue a SORN, which means you wouldn’t need to pay vehicle tax or buy insurance. However, you could still take out “laid-up” car insurance to protect your vehicle while it sits on your driveway
• Modified car insurance: if you’ve made any modifications to your car to enhance its performance, you might need to seek out specialist modified car insurance 
• Business car insurance: if you want to hire out your vintage American cars for weddings and other occasions, you’d potentially need to look into specific business car insurance

9 tips for getting cheaper American car insurance

While American car insurance can be more expensive than standard cover, the following tips may help you reduce your premium:

1. Compare car insurance: even if you have a smaller pool of providers to choose from, thoroughly comparing your options will help you find the best deal for your circumstances
2. Consider classic car insurance: if eligible, choosing classic car insurance could result in a cheaper premium because classic car owners are often seen as more responsible with their beloved vehicles
3. Don’t overvalue your vehicle: make sure you get an accurate valuation for your vehicle; otherwise, you could end up paying more than you need to
4. Up your excess: the higher the voluntary excess you commit to, the cheaper your premium will be (although you should only pick an excess you can realistically afford)
5. Be careful where you park: parking your car in a garage or driveway overnight can bring down the cost of your cover, compared with parking on a public road
6. Limit your mileage: by limiting the amount you drive your imported American car, you may be eligible for a less costly low-mileage premium
7. Build your no-claims bonus: choosing when to make a claim and when to pay for repairs out of your own pocket can help you build your no-claims bonus
8. Be selective with your modifications: while modifications that enhance the power and performance of your vehicle will push up the cost of cover, security additions, such as dash cams and parking sensors, can bring down the price of your premium
9. Join a car club: depending on your provider and the institution in question, joining an official car club can give you a discount on your insurance