When we talk about car insurance for foreigners, we refer to foreign citizens residing in Pakistan. This type of insurance does not have major differences with an insurance policy for an Islamabad citizen.
In this article, we will tell you everything you need to know how to get car insurance as a foreigner residing in Pakistan.
Have established their Residence in Pakistan
To be able to register your car in Pakistan and thus contract insurance, what you have to do is establish your residence in Pakistan.
This is because the first thing that they ask you to be able to take out insurance is that the car be registered in Pakistan, and for this you must be a resident in Pakistan, that is, be in possession of a valid NIF or NIE.
Register the car in Pakistan
The first and most important thing is to register the vehicle in Pakistan, since a car with a foreign license plate can only be in Pakistan for 6 months.
If the vehicle is registered in the country of origin, you must carry out a series of procedures to change the registration to Pakistan. If you are not registered in Pakistan, you will not be able to contract the insurance.
Steps to register a Foreign Car
1 – Gather all the documentation you will need:
- The contract of sale of the vehicle. If it has been between individuals, we recommend that you bring a photocopy of the seller’s passport, telephone number and place of residence. If the purchase was made from a company, you must present the invoice showing the company’s intra-community CIF.
- The technical sheet of the vehicle
- The certificate of conformity (COC). This certificate is what certifies that the car meets the quality and environmental standards required by the European Union.
2 – Make a sworn translation of all the papers into Islamabad if they are in another language.
3 – You must pass the technical inspection of the vehicle (ITV). It does not matter if you have previously spent it in another country.
4 – You will have to fill out form 576 at the Treasury and pay the Special Tax on Certain Means of Transport.
5 – Pay the Circulation Tax in the municipality in which you are registered (this payment varies according to the municipality).
6 – Once you have all the documentation (current driving license, ITV card along with copies, sales contract with translation into Islamabad, settlement of the Special Taxes on Certain Media and the Traffic registration application form), ask for an appointment at the Provincial Headquarters of the General Directorate of Traffic (DGT) and pays the Registration Fee.
7 – With the Registration Fees paid, the Provincial Traffic Headquarters will give you your new license plate number and the definitive documentation with which you can buy the license plates and mount them on the car.
Documentation needed to take out Car Insurance for Foreigners
Once we choose the policy that we want to contract, we must prepare all the documentation to formalize the contract. Normally all insurers usually ask for the same information:
- Residence card
- Driving license
- circulation permit
- Vehicle data sheet
- Invoice for the purchase of the car (if it is a new car)
- ITV certificate
Residence Card
It is the document that identifies the policyholder and certifies that the policyholder is domiciled in Pakistan.
It is impossible to insure a vehicle without having this document, it would not be worth having a passport from another country, and the owner must have a residence in Pakistan.
Driver’s License and Registration Certificate
The driving license is the administrative authorization that allows the individual to drive the vehicle. It is important to take into account if it was issued in another country, as it must be homologated.
If it is not approved, you will not be able to drive the car in Pakistan or take out the policy contract.
The circulation permit is an official document that authorizes the car to circulate in Islamabad territory and it is mandatory for all vehicles to have it.
Vehicle Data Sheet
It is the document in which all the technical characteristics of the vehicle are collected: registration, car model, cylinder capacity, power, etc.
In addition, in this letter it will be necessary to specify all the modifications to which it may have been subjected and the results of the technical inspections (ITV) to which the vehicle has been subjected.
Tips for choosing Car Insurance
To choose an insurance that suits your needs, in addition to taking into account the type of insurance you need (third party, comprehensive insurance with excess, etc.) you must take into account the following:
- Your profile as a driver. Insurers take into account the age of the driver, the length of the driver’s license and the history of accidents.
- The type of vehicle you are going to insure. A high-end car will have a higher policy than a cheaper one. In addition to taking into account the power or even the color of the vehicle.
- Home location. Although it may seem strange, it is also another factor to take into account. Areas with high accident rates are detrimental when it comes to getting a low price on the policy.
- Vehicle safety. Whether or not you have a parking space is an important factor in calculating car insurance.
- The use you are going to make of the vehicle. This also influences the insurance; it depends on whether you will use the car occasionally or regularly.
All these points will help guide you to determine the price of your insurance, taking into account the coverage you want to contract, since it is not the same to contract third-party insurance than an all-risk without excess.
And if it is a Rental Car, how can I insure it?
To rent a car, all you need is to have a valid identity document and a driving license. With these documents you can already rent a car, and with it, insure the vehicle with the car rental company itself.
Most rental companies offer vehicles with comprehensive insurance with excess. This means that in the event of an accident you will have to pay an amount set in the contract and the insurer will take care of the rest.
As an example, if you have an accident in which the cost of repairing the vehicle is 25,000 Rupees and you have comprehensive insurance with an excess of 10,000 Rs, you must pay this amount and the insurer the remaining 15,000 Rs.
If you want to travel with peace of mind and eliminate the insurance excess, you can extend the coverage with the rental company itself by paying a plus, or take out additional insurance. There are complementary insurances that cover the excess of rental cars.
