Insurance

Your Ultimate Car Shipping Insurance Guide

Do you need to transport your car from one state or even country to the other? This can be done through different methods; depending on the distance, you can even opt to drive the vehicle to the new location by yourself. However, the best way to transport a vehicle is to hire an auto shipping company because of the professionalism and expertise these companies have in the field.

However, some people sometimes worry that something can happen to their car while it is in transit. This is why “Do you need insurance to ship a car?” is a question car shipping companies have to answer. The fact is, people do not necessarily need to have insurance while shipping their vehicles, but the shipping companies are legally required to.

But this is merely one of the things you need to know about auto shipping insurance. If you would like to find out more, then read this article to the end. In this guide, we will discuss everything you need to know about this topic.

Shipping Insurance: What is It?

Shipping insurance refers to coverage that covers a car from the time it is loaded onto the trailer to the time it gets to its destination. When a vehicle is insured, whatever damage happens to it throughout this period will be covered. Typically, auto transport companies are legally required to offer every vehicle they transport this protection.

However, the amount for the coverage is often divided to cover all the vehicles in the trailer. So, let’s say there are 10 vehicles in the trailer and the entire coverage is $200,00. This will be divided between all 10 vehicles with each getting $20,000.

Shipping Insurance Types

There are three major types of protection policies when it comes to transporting cars. Knowing these policies will help you make sure your car is adequately covered while it is in transit. Therefore, we will discuss these policies below.

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Carrier Policy

This is coverage the carriers offer their customers. It is also known as cargo insurance and protects the vehicle during transit. If any damage happens to the vehicle while it is being transported, this insurance is meant to cover the costs of repair. A lot of carriers have at least $100,000 coverage per vehicle, although the amount can be way higher than this in some cases.

Customer Policy

Carrier coverage typically has some limitations; for instance, the amount being covered or acts of God limitations. You can read this article to find out what acts of God mean when talking about insurance. Because of this, some customers opt for additional coverage for their vehicles; especially when transporting exotic or luxury cars.

However, not all regular auto insurance covers a vehicle in transit. Before banking on your regular auto coverage when transporting your vehicle, talk to your provider to be sure if your car is covered when in transit or not. If it isn’t, then you may need to get a special shipping policy to provide the additional protection you need.

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