Vehicle shipping, no matter the type, where your car is the center, the subject of conversation, or your motorcycle, is insurance coverage, the most important thing you should keep in mind. Your car might be harmed as a result of a transport situation, such as being hit by small stones, getting involved in an accident, or other events that you did not expect. The right insurance will take the worry off your shoulders in case of any loss or damage to your vehicle during the shipping process.
This article is about the insurance coverage options in car shipping that we will review with you, their working mechanism, and what you need to know to make a choice. Starting from basic coverage to premium options, knowing the various kinds of insurance will help you be calm and safe during the whole process of the transport.
Why is Insurance Important in Car Shipping?
While car shipping companies take many precautions to protect your vehicle during transport, accidents can still happen. Having proper insurance coverage is crucial to ensure that you won’t be left with a hefty repair bill if your vehicle is damaged during transport.
In addition to protecting against physical damage, car shipping insurance also provides coverage in case of theft, vandalism, or other issues that may arise during the transport process. This gives you peace of mind knowing that you won’t bear the full financial burden if something goes wrong.
Types of Insurance Coverage Options in Car Shipping
Different insurance coverage options n car shipping to choose from, each offering a different protection level. The main categories are basic and full, however, the options are numerous within each class. The most common types are:
1. Carrier’s Liability Insurance (Basic Coverage)
Carrier’s liability insurance is generally the default standard coverage that comes along with the majority of car shipping services. The purpose of this coverage is to protect the car during the delivery in case it gets a damage due to the carrier’s negligence or an accident.
What Does Carrier’s Liability Insurance Cover?
Broken equipment due to a fire or vandalism during the process of loading, unloading, or transportation will be taken care of through the carrier liability insurance.
The insurance is complete where the damage has been caused by the carrier due to their carelessness, for example, the vehicle’s performed by wrong handling or securing.
The carrier’s liability insurance is generally part of the freight payment, however, it may be limited in terms of the types of damages or situations that it can cover. That is why a person may still need to have more coverage.
2. Full Coverage Insurance (Supplemental Coverage)
A full coverage insurance policy offers a higher level of protection and is usually bought as a supplement to the basic coverage. Such an insurance plan provides more comprehensive protection, basically, a vehicle is covered for more potential hazards.
What Is Full Coverage Insurance?
Full coverage insurance usually takes care of the damage to your car as a result of fire, theft, accident, vandalism, natural disasters, and even the removal of the small party of the road.
Moreover, the coverage is perfect for luxury or oldtimer cars, which can be more easily damaged during transport activities.
Full coverage is always an extra expense, but it may be a good idea to have it if you are after a feeling of safety and extra protection, especially if you have a high-end or collectible car. It makes you safer by allowing you to be covered for more instances of damages which your basic liability insurance does not.
3. Cargo Insurance (For Specific Items)
Cargo insurance is a supplementary coverage option that solely keeps your car contents safe from any harm while on the way. It may be quite applicable if you are shipping your personal items through your car such as electronic devices, baggage, or other valuables.
What Does Cargo Insurance Cover?
Personal Belongings Inside the Vehicle: In the case of shipping personal items in your vehicle, cargo insurance will be the safest guard for these belongings against any sorts of damage and theft.
Shipping Additional Items: Besides this, cargo insurance can also be a means of cover for your additional items (e.g. auto parts or equipment) that you want to ship alongside your vehicle.
There is a point that should be noted that the majority of car shipping companies may not permit personal items to be put in the car or may have certain conditions regarding the types of items allowed in the car. It is always good to double-check the company’s policy and whether cargo insurance is available or not.
4. Declared Value Coverage (Customized Coverage)
Declared value coverage is an optional insurance that enables you to indicate the value of your vehicle. The main feature is when your car is worth more than the standard coverage provided by the carrier’s liability insurance.
What Does Declared Value Coverage Cover?
Higher Coverage Limits: In case your car is worth more than the standard insurance limits, declared value coverage permits you to state the vehicle’s total value, thus, you are fully covered in the event of a total loss or severe damage.
Customizable Protection: The feature gives you more control over the amount of safety offered, which depends on the vehicle’s value and your personal preference.
The option is there to give you sufficient safety and tranquility if you have a high-end or classic car and want to ship it.
5. Self-Insurance (In Case You Have Your Own Coverage)
In the event that you have a personal car insurance policy which also covers your vehicle in the case of shipment; then, theoretically, the insurance should be able to cover the transport. Insurance for cars on the road is, in fact, offered by some companies but the coverage may differ depending on the insurer and policy type.
Which Risks Are Covered By Self-Insurance?
Your Current Plan: If your personal car insurance includes vehicle shipping as a coverage, then it can be used for your shipment as well. But first, make sure to ask the insurance company to give you the details and/or limitations if any.
Coverage Restrictions: Understand that the risk of theft or vandalism, for example, may not be covered by self-insurance, depending on the policy terms.
Make sure to call your insurance company and verify the extent of your coverage before you decide to go with self-insurance as there are many policies that provide only limited protection.
How to Get the Best Insurance for Your Car to Be Shipped
The most suitable insurance for the shipment of your vehicle will mainly rely on what your car is worth, how far it is going to be shipped, and the degree of safety that you want. The following are the key points that you may take into consideration when picking your insurance:
The first point that needs to be considered when picking a car insurance policy is the value of your vehicle. If you are shipping a high-value, classic, or luxury car, full coverage or declared value coverage is extremely advised to make sure that your car is the least bit not vulnerable in the process.
If you take open transport there is a higher probability that your car will be damaged. This is because the vehicle is exposed. In such a case, the best option will be an insurance policy with full coverage.
Relaxation of the Mind: If you decide that you want to be absolutely stress-free and you want to make a plan for taking care of all the risks, you should get the full coverage insurance or the extra insurance that will help you in this case.
If you intend to send your personal belongings in the car, then you should be aware of the cargo insurance possibilities. Kindly clarify this with the transport company.
Knowing what types of coverage are available in car shipping is quite important as it is the first step towards the protection of your car in the delivery process. It does not matter if you pick the minimal carrier responsibility, complete coverage policy, or any other particular option, the goal is to give your vehicle the utmost protection against all possible risks.
We at Auto Shipping are available to you with different insurance plans that can cover your car fully during the delivery process. Get in touch with us to have a discussion about your insurance requirements and to receive a quote for your car shipping date!
