Shipping a vehicle either domestically or internationally has its own challenges. One challenge most vehicle owners are concern if their personal auto insurance will cover the vehicle during shipping. The short answer is: depends. Usually, personal auto insurance does not cover the vehicle during transportation, but there are ways to guarantee protection. This article seeks to explain the complexities surrounding car shipping insurance, the coverage provided by personal auto insurance, and the best course of action to ensure the vehicle is protected during shipping.
Understanding Your Personal Auto Insurance
While you are driving the automobile or when the car is moving, the personal auto insurance policy covers any damages caused by a crash, theft, vandalism, and other damages which are beyond one’s control so long as the car is under way. However, if your vehicle is being relocated by a shipping company, then this does not apply because it is out of your control. Here is why:
– Liability Coverage: With regard to personal auto insurances, liability coverage is included in almost all polices paying out for damages of other vehicles or property in an accident caused by you. Unfortunately, they pay for damages to your car while shipping.
– Collision & Comprehensive Coverage: These coverages will most likely only apply when the automobile is actively being driven and not when it is being transported. Therefore, these types will exclude any damages that happen during the shipping period.
Does Your Personal Auto Insurance Cover Shipping?
Most personal auto insurances do not provide coverage for your vehicle when it’s under shipment, so the answer would be most simply stated as no.
It is common for auto transport companies to carry some form of insurance, however, this does not mean that your vehicle will be completely safeguarded.
This is illustrated as follows:
– Shipping Method and Vehicle Registration Insurer Direct Shipping Coverage: Some auto insurers offer extra protection for their automobiles while in transit. It can be worth reaching out to your insurance company to check if such coverage exists. This, however, is not common and would potentially mean the additional burden of a whole separate policy or endorsement.
– Insurance with the Shipping Company: Most reputable companies engaged in auto transport issue policies with limited insurance against damage during the automobile’s transport. This form of automobile insurance is often referred to as cargo insurance or carrier liability insurance which, in the ordinary course of business, protects your
automobile while on shipment. The limits of insurance protection, however, are not the same for all companies.
Types of Coverages in Shipping Insurance
As far as shipping vehicles are concerned, the levels of protection assigned to them vary. Here is what you need to know:
- Carrier Liability Insurance Coverage
During the transit of your vehicle, this insurance provides the least amount of protection. Carrier liability insurance is very basic and is usually assumed by the motor carrier, which means it is only offered at an elementary level and, therefore, cannot be relied upon. This type of insurance pays for negligence on the part of the carrier such as accidents, weather-related issues, or sheer mismanagement of the vehicle. Additionally, this insurance may have some form of partial cap on indemnity clause wherein certain pre-determined damages will not be compensated and is likened to limited liability.
- Cargo Insurance
These types of coverages are in voluntary and can be added by the user during purchasing of auto shipping services. Cargo insurance refers to the additional protection taken from the transport company for specific cargo. These include all the damages sustained to the vehicle after the transport company takes it into their custody which may be scratches, dents, abrasions, or even more serious accidents. Cargo insurance is meant to primarily mitigate loss rather than assume and is meant primarily to ensure that the vehicle is treated with care as is expected under this agreement.
Consequently, cargo insurance is more often issued at higher and more favorable rates in comparison to liability coverage.
- Supplemental Insurance
In the case of personal auto insurance policies with gaps in coverage or in the case that the shipping company’s coverage is inadequate, additional insurance may be beneficial. Additional coverage is offered by some shipping companies that protect against loss or damage of valuable items in vehicles while in transit and theft or some other risks that are not included in the standard shipping insurance. The additional coverage is ancillary in nature and combines the limit of the posted value for the vehicle and the type of shipping service required.
Confirming Your Vehicle is Covered While in Transit Shipping On
Pour in Snow limitations resulting in your car being covered while shipping it, do the following actions:
- Call Your Personal Auto Insurance
Reach out to your personal auto insurer before booking vehicle shipping engagements to determine whether the insurance policy provides coverage for the vehicle while it is in the custody of the shipping company. If so, check if you need to adjust the limits and deductibles set in the policy.
In the case that shipping is not covered, check if there is an option to add this coverage or look into third-party shipping insurance options.
- Verify the Insurance Policy of the Shipping Company
For every car shipping company you consider, find out what insurance they hold. Ensure to ask these questions:
– What portion of insurance is included in the price?
– What does the insurance cover? (e.g. accidents, theft, weather-related damage, etc.)
– What is the maximum amount payable under the policy?
– Can the shipping company tailor the policy to improve the coverage?
– Are there provisions regarding the coverage of advertisement?
The policy must ensure that the shipping company adequately insure the value of your car. Make sure you understand the terms of the policy before making any advance payments.
- Obtain Extended Insurance
For highly valued vehicles, or those with a high likelihood of damage, additional coverage is recommended. Most shipping companies are known to offer it, but it is best to consult your insurer to get a better deal.
- Capture the Condition of Your Vehicle
You should take detailed photographs of your vehicle’s interior and exterior prior to shipping for your records.
This safeguards, if necessary during the transit period, that the vehicle’s condition is not altered. Documenting damage with shipping documents can accelerate the claims process. This ensures all parties acknowledge and agree to the vehicle’s transfer in the specific condition and eliminates disputes concerning fault or responsibility.
Closing remarks on auto transport insurance section
It is most probable that personal automobile insurance coverage does not include a vehicle while traveling to the location. In such circumstances, it may be wise to look for transport companies and what they have to offer. When a car has significant value, ensuring reliable insurance coverage at all times is imperative. Whether you accept the transport company’s basic offer or decide to purchase an extra policy, it does not matter. Nonetheless, an assessment prior to shipment is vital.
To get expert advice and best offers on shipping, visit Shipping Cars today. Get the quote for the car shipping and increase the safeguards for the vehicle during the journey.