Posted by If you’re still asking “Do I need insurance to ship your car?”, then you’re probably aware that the average cost of uncovered car shipping damage can reach a staggering $3,500. Well, we actually have your answer.
No, you don’t legally need insurance to ship a car, but we advise you to get some, and that is what we will talk about in this article. In addition, you will learn the secrets behind car shipping insurance, and expert tips to guarantee a safe arrival for your car.
Don’t miss out!
Table of Contents
Do You Need Insurance To Ship Your Car?
Surprisingly, No! You actually don’t need insurance to ship your car. Auto transport companies are legally obligated to have liability insurance that covers your car during shipping activities.
Although this insurance is in place, in truth, it is not enough. The transporter’s insurance only amounts to what is stated as the Kelley Blue Book value of your car. Many times, this does not match the true value of your car to you. If this happens, then you need to obtain additional insurance (auto transport).
Your transporter’s insurance also won’t provide coverage for valuables that could be in your car.So, if you if you have valuables in your vehicle, then auto transport insurance is necessary. This will provide coverage for the damage of any possession in your car that occurs during the shipping timeframe.
This insurance does not cover things like Acts of God, that is, damages that can occur due to nature’s interference, nor does it cover expensive things like speakers that might be in your car. Therefore, it is advised that you get added insurance for shipping your car. This is generally known as auto transport insurance.
Before we continue, I just thought to actually let you understand what auto transport insurance is.
What Is Auto Transport Insurance?
This is insurance coverage for a vehicle from the time it is shipped till it gets to its destination. This is to protect the vehicle from any kind of damage while in transit.
Although the plans could vary and sometimes not provide the full amount of coverage that is stated, this is the general understanding of what auto transport insurance is
Extra Insurance Is Always A Good Idea!
You might love to know more about Auto Insurance Transport Requirements.
Why Should You Get Insurance Coverage When Shipping Your Car?
You probably don’t think getting extra insurance for your car is a good idea because of the extra cost. Truth is, the benefits far outweigh what you could pay.
Here are some of the advantages:
- Peace of Mind
- Coverage for damaged items
- Filing claims
- Protection from financial liability
1. Peace of Mind:
Nothing beats going about your day without having your heart racing at the thought of a bump or worse damage on your shiny convertible. Simply purchase extra insurance and rest easy.
2. Coverage For Damaged Items:
With only liability and cargo insurance, you could get your car fixed if any accident occurs, but what if other uninsured equipment in your car gets damaged? Having extra insurance just saves you the hassle of looking for where to get the out-of-pocket funds for repair or replacement.
3. File A Claim:
It may not look serious until it is. You must retain the right to file a claim for repair or replacement if there is a case of damage to your vehicle. Auto transport insurance has you covered on that!
4. Protection From Financial Liability:
Imagine suddenly finding yourself without a car, in a new city, because you lost it during shipping. Auto shipping insurance exists to ensure that you are saved from that trauma before it ever happens!
“Do you really need to provide proof of insurance to register your car?” See this amazing guide for clarity!
The Three Major Types of Shipping Insurance And How They Work
Now that you’ve understood the importance of insurance for shipping your car, here’s a breakdown of the three major types of insurance that exist, and how their coverage applies to your car shipment:
#1.Liability Insurance:
This type of insurance is directly connected with the shipping company and you as the owner of a vehicle. In the event of an accident, this insurance provides coverage for you and the shipping company.
With liability insurance, you can file a claim for reimbursement and you will get it. Additionally, your shipping company won’t bear the brunt of the shipping damage as this will be covered by insurance. Although all of these are available, you don’t get coverage for damages that affect anything you might have left in your car.
#2. Cargo Insurance:
This type of insurance is solely concerned with the shipped vehicles. It provides coverage for possible occurrences that could affect the state of the vehicles in transit. Occurrences like theft, accidents, and attacks all come under this umbrella.
Cargo Insurance still doesn’t offer complete insurance. Sometimes insurance for vehicles is fixed at a stipulated amount and an increase in the number of vehicles makes no difference. For example; if you have to ship two cars, but your cargo insurance is about $30,000. The amount will be split equally between both cars. In such a case, you need more than cargo insurance.
Auto Transport Insurance: This is the exact amount of extra security you need to safely ship your vehicle(s) cross country. It doesn’t take the place of the other types of insurance, but it is the necessary extra.
This will cover all the extras that are not quite covered by the other types of insurance; for example, the expensive gadgets in your car, the other half of a split cargo insurance coverage, etc.
3 Important Things To Do When Obtaining Shipping Insurance For Your Car
Wouldn’t it be painful to spend money on insurance only to find out that its coverage is unsatisfactory?
Here is a list of important things to check when obtaining a shipping insurance plan for your car:
- Understand your plan specifics
- Check out-of-pocket costs
- Specific insurers
#1. Understand Plan Specifics:
Your auto insurance plan must contain specific terms that adequately satisfy what you need it for. If not, the plan is of no use to you.
Knowing the fine print of each auto insurance plan will help you know if it is the best for you. For example, you might need a plan that provides coverage for many vehicles, all at once.
#2. Out-of-pocket Costs:
If your plan contains deductibles and other out-of-pocket expenses, you should know if you can foot the additional bill. This will also apply if you have to cover a percentage of the repair coat in the case of car damage.
#3. Specific Insurers:
When an insurance plan is before you, make efforts to find out the real insurers. Sometimes plans come through brokers and this makes things complicated, especially if there is a need to make an insurance coverage claim.
This would require extra effort and some inconvenience on your part, but you must do it. It could save you a lot of time, money, and energy later.
6 Things To Do To Experience A Good Car Shipment With your Insurance
Having a good auto insurance plan won’t automatically get you a good shipment.
Here are a few things to do while choosing a shipping company for your car:
- Check your coverage limits
- Avoid Subcontractors
- Remove all personal items
- Do a thorough inspection
- Ask for proof of insurance
- Do proper documentation
#1. Check Coverage Limits:
Everything about insurance is how much is insured and what is left out. Ensure you know what could be left out in your insurance plan document. This will help you decide whether it works in your favor or not.
If the coverage level provided for shipping your car doesn’t satisfy you, consider purchasing more coverage, or getting a new plan altogether.
#2. No Subcontractors:
You won’t be told unless you ask. If your car shipment has any link to subcontractors, you will find yourself in a fix if there is any reason to make an insurance claim.
This is because the shipping company directly in charge will keep referring you to their different subcontractors and you won’t know the agency to hold responsible for your damages.
So, ensure there are no subcontractors involved before you sign the insurance plan papers
#3. Remove Personal Items:
Your personal belongings shouldn’t be in your car. This could complicate matters as insurance may not provide coverage for whatever you lose as long as it is not part of the vehicle.
An empty vehicle also allows you to know in detail what is at risk of damage. This is a good thing!
#4. Thorough Inspection:
Check and double-check all parts of your car. Take pictures and videos even if you are not keen on it. There can never be too much evidence if the need arises for you to make an insurance claim.
Do this before you hand the keys of your car over to the person in charge, and after the car arrives at your agreed destination. Saves you a lot of trouble in the long run!
#5. Ask For Proof Of Insurance:
Any legal auto transport company has something to prove that you are covered by their insurance policy. You should not be shy about making proof. It could be in the form of a certificate.
This is all part of the ways you get evidence just in case anything unexpected occurs. This will also build your trust in them.
#6. Proper Documentation:
In addition to everything else, don’t forget to keep all the agreement documents. This is important if you ever need to refer.
Your documents should include proof of all your agreements like; coverage time frame, amount of coverage, coverage limits, etc.
Frequently Asked Questions
[sc_fs_multi_faq headline-0=”h3″ question-0=”Do you need insurance to ship your car?” answer-0=”No, all shipping companies have insurance coverage for all vehicles that covers for possible damage. But you might consider getting auto transport, to provide more coverage for your car.” image-0=”” headline-1=”h3″ question-1=”What if I’m not sure whether I’m covered for a certain type of damage?” answer-1=”If you are not sure about coverage for a type of damage, your best option is to call your insurance company and ask. You could also look through your insurance plan documents again.” image-1=”” headline-2=”h3″ question-2=”What if the shipping company is at fault for my car damage?” answer-2=”If your shipping company is at fault for damaging your car, you could work with them directly to have it repaired. All shipping companies have policies that cover this, either through reimbursement or repair.” image-2=”” headline-3=”h3″ question-3=”What if I’m shipping my car overseas?” answer-3=”If you’re shipping your car overseas, then you will need to obtain a separate insurance package because your regular auto insurance just won’t cover it. You should also note that your destined country might have different policies concerning auto insurance.” image-3=”” headline-4=”h3″ question-4=”How do I choose the right amount of auto transport insurance coverage?” answer-4=”The best way to know the right amount of coverage for shipping your vehicle is to ask your direct auto insurance provider. This will help you make an informed decision about getting insurance coverage for your vehicle.” image-4=”” count=”5″ html=”true” css_class=””]
Important Recommendation
- What happens if a Stolen Car is Found After Insurance Payment
- Driving Without Insurance in Quebec
- In Ontario’s No-Fault Insurance System, Who pays deductibles?
- Understanding No-Fault Insurance in Quebec
Conclusion
We know you want the best for your car while it’s being shipped. This is why we advise that you get insurance even though it’s not legally required. If you follow the different steps outlined in the article, you can get good insurance coverage at affordable rates. Do this, and thank us later in the comment section.
Can’t wait for your car to arrive!
Cheers!