Insuring EU imports after Brexit
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Last updated: 25/01/2022 | Estimated Reading Time: 1 minutes
Many of the UK’s cars are imported from the EU. Popular brands in the UK such as Ford, Peugeot, Volkswagen, SEAT and Skoda all manufacture most, if not all, of their models abroad.
Now that the UK has officially left the EU will the import tariff, originally set at 0%, increase? And does this mean car insurance is affected too? Read our useful guide to find out more.
Before Brexit, there was a lot of speculation that the price of cars imported from the EU would increase, with most information pointing towards a 10% import tariff.
However, thanks to a last-minute trade agreement on the 24th of December 2020, new cars imported to the UK from the EU will not incur extra trade tariffs, unlike grey import vehicles.
In other words, all vehicles will be allowed to be imported and exported under the same trade rules that applied pre-Brexit.
These trade rules will also apply to car parts. Cars will need to be made with at least 55% local parts to avoid tariffs though.
Electric vehicles are exempt from these changes until 2026 to allow time for local sourcing of parts.
Insurance for cars imported from the EU should remain the same as it was pre-Brexit.
This could change, as the new trade agreement could increase the admin required for insurance companies, and therefore insurance premiums would increase to reflect this.
However, for now, car insurance for EU import cars should be as standard.
Click here for more information on all types of imported car insurance.