Insurance is a vital aspect of car shipping, and those who do not have it can find themselves in a difficult situation. If you’re thinking about transporting your car across the country, consider what happens if it gets damaged during transport. What if the driver is involved in an accident? What if there is additional damage? This is where car shipping insurance comes in. Some people may not even be aware of the existence of coverage or how to select the appropriate type. Here’s everything you need to know to acquire the protection you require.
What is Car Shipping Insurance?
Car shipping insurance is a sort of coverage that is provided to protect your vehicle during delivery. This can happen if you ship your car or carry it somewhere in your vehicle. It is a type of car insurance that pays for the expense of transporting insurable goods.
While coverage varies based on the carrier and the type of products being transported, some common features include liability coverage and other personal injury protection (PIP) coverage, such as medical care and income replacement.
While these features may appear to be overkill for such a minor risk, car shipping insurance might be a good investment. Insurance costs can be extremely low (a few dollars per $1000 in coverage), but the cost of damages for even minor accidents is frequently significant. Additionally, extra vehicle protection may be worth the expenditure because many insurance companies may raise your rates if you are at fault in an accident.
How Does Car Shipping Insurance Work?
Car shipping insurance has two main types of coverage: liability and physical damage coverage. As reported to the insurer, liability coverage covers you if your vehicle is at fault in a crash. For example, would the at-fault party pay the cost of your car hitting another driver who had to be transported to the hospital instead of being able to drive? Liability coverage ensures that you will be covered even if the wrong party is found responsible for an accident.
Physical damage coverage covers just physical damage to your vehicle or other property, such as a shattered windscreen. While this coverage is not required, it might provide additional peace of mind if your automobile is damaged during delivery.
Car Shipping Insurance Cost
The cost of car shipping insurance varies according to the coverage you choose. While liability and physical damage coverage are pretty standard, there are numerous alternatives for additional features like loss of use and extra accident protection. For example, while physical damage coverage is standard on most plans, certain auto shipping firms will add the option of loss-of-use coverage as an extra option. This implies that if your automobile is damaged, it may be towed to a repair facility for repairs rather than being driven away from the delivery place.
This would be covered by loss of usage insurance. Extra accident protection will protect you if another accident occurs between the time the vehicle leaves your home and the time it reaches its destination. Some companies may charge a larger premium for this feature, while others may provide it as a free alternative.
Insurance for shipping cars
Several factors can influence the cost of car shipment insurance when acquiring it. The type of coverage you select, as well as the carrier and even the base amount of coverage you select, will all influence how much you spend.
Here are some pointers to consider while acquiring car shipping insurance: Choose a business that specializes in auto shipping (many auto transport firms will offer such coverage). When you need to move a car to another state, a trustworthy firm with car shipping experience will be able to provide you with the most accurate prices.
Car shipping insurance: when to purchase it
While the cost of car shipping insurance can be quite low, keep in mind that your vehicle may be damaged during the moving process. The optimum time to purchase supplementary insurance is before shipping or delivering your vehicle. You’ll have more time to review the policy’s terms and ensure you’re satisfied with them before making a major financial and risk investment.
Is auto transport insurance required?
When shipping a car, you do not require specialized auto transport insurance. There is no need for specific vehicle transport insurance if you are relocating your car from one state to another and it is insured. If you’re transporting a vehicle that isn’t covered by your current auto policy, you’ll need proper carrier coverage or a third-party agency.
To insure your auto shipping coverage, an insurance agent will need information regarding the commercial vehicle and its cargo. The federal government controls those who carry vehicles and their goods, as well as those that provide carrier and auto transport insurance. Before exporting your vehicle, it is strongly advised that you collect the contact information of the auto transport insurance carriers in your area.
An agent will be able to walk you through the process of transporting a car from one state to another, answer any questions you may have, and provide a price for the necessary auto shipping insurance. You can discover a local agent by searching online or contacting your state’s department of motor vehicles (DMV).
Car shipping insurance tips
Car shipping insurance is rather inexpensive, especially when compared to the expense of replacing a vehicle. The cost of the premium varies depending on the type of coverage purchased, as well as other criteria. Here are some car shipping insurance tips:
1. Request proof of insurance
Many insurance professionals will provide quotations without requiring proof of insurance. However, a lack of proof may result in a coverage denial. It is critical that you provide all necessary papers for the carrier.
2. Look for a specialist
Depending on your location and the value of your vehicle, most carriers provide auto shipping insurance. United States carriers are often more expensive, however, overseas carriers might be significantly less expensive depending on where you choose to ship your automobile.
3. Choosing the right carrier
Car carriers for auto shipment in Europe may be less expensive than in the United States. You should carefully consider whether the carrier you choose provides specialist insurance, as this could help you get a better deal on your payment.
4. Let everything be in writing
If you accept less coverage, a carrier may be able to assist you to get better costs. However, any restrictions agreed to in writing must be included in the auto shipment insurance agreement.
5. Make sure to get the appropriate coverage
A number of companies provide various levels of insurance coverage, allowing you to select the appropriate degree of protection for the value of your vehicle. If your car is worth more than $200,000, you will need to purchase additional coverage from a specialized US or international business.
6. Perform an inspection
Assume your vehicle has any bodywork or mechanical issues. In that situation, you should receive an estimate of your vehicle’s value and include it in your auto shipping insurance agreement.
Conclusion
Car shipping exists as a result of the growing demand for individuals to transport vehicles from one country to another, as well as the movement in automobile manufacturing toward more lucrative markets. Your car is a significant possession that should be secured, especially when you drive it away from home. You must select an auto transport insurance provider that knows their client’s needs and will gladly give you advice on how to best protect yourself.
