When shipping a car you want to be sure it’s protected during transport. Statistics show that less than 5 percent of vehicles arrive with any type of damages. Still, you do not want to take chances and that is why you need to understand insurance. Your car is always insured from pick-up to delivery at your door. It is important that you feel comfortable when shipping a car. For this reason, no question is too small. When you are in the process of choosing the auto shipper, here are some questions you may want to ask.
Car shipping insurance questions
- Is insurance included in my shipping rate?
- What is the limit of insurance coverage?
- What type of damage does it covered?
- Does insurance cover personal belongings?
- Do I have to pay any deductible?
Is insurance included in my shipping rate?
Yes, insurance is included in your auto shipping rate. All vehicle transport carriers are legally required to have cargo insurance. This information can be verified with the Department of Transportation online. When you call to place an order, confirm the existence of these policies and their amounts. Cargo coverage requirements are not administered by any government agency; it is a responsibility of the shipper, you or your broker, to verify insurance.
What is the limit of insurance coverage?
Liability limits vary based on the type of carrier you choose. Typically, auto transporters purchase $250,000 coverage, which comes down to about $25,000 per car. If shipping a car that is worth more we recommend that you request a carrier with greater coverage.
All open car carriers ususally carry a liability of $250,000. Many enclosed trailers carry insurance of $500,000 and that can go up to $2 million if the customers prefers. Covered trailers are ususally used for high-end, sports and luxury automobiles and many enclosed carriers specialize in such transport. Once your car is dispatched, you can request the Certificate of Insurance, which should include coverage amount for liability, workers comp, cargo limits, and deductible if applicable.
What type of damage does it cover?
During shipping, your car will be insured under the Inland Marine Insurance. Don’t let the name confuse you. Although this type of insurance was originally created to protect the cargo transported by water, with time its definition has expanded to cover the goods and property moved by land. This coverage includes damages during loading, unloading and transit. It also includes anything from theft, dents, and scratches to a total loss of a vehicle.
In the unlikely event your car arrives damaged, note all the visible irregularities on the Bill of Lading, have the trucker sign it and give you a copy of the document. It is important that you do the inspection at pick-up and then at delivery alongside the truck driver. This is your only opportunity to inspect and report damages. If the delivery happens to be at night, make sure to inspect your car under bright lights. Take pictures of any damages that might have occurred. Contact your car shipping company and they will help you file a claim.
Does insurance cover personal belongings?
Car shipping companies insure your vehicle during transport, but they do not insure any personal belongings left inside the car. So if you were thinking to kill two birds with one stone and ship your guitar collection inside your vehicle, think twice. Although it’s possible to arrange for your personal items to be transported inside your vehicle for an extra fee, this fee will only cover additional weight, not any possible damage.
Your personal belongings may be protected under your home insurance policy. To find out, talk to your home insurance agent.
Do I have to pay any deductible?
No, you do not have to pay any deductible if there was a damage during transport. When everything is noted on the BOL you can file a claim with the insurance company and wait for its resolution, whichout paying anything out of pocket.
Additionally, your own auto insurance company may also offer coverage while your vehicle is in transit. Get in touch with them to get the details of your policy. If you are a classic car collector or have a luxury vehicle, you may want to look into an “umbrella” policy which will top off your existing insurance coverage. Extra insurance is always recommended when transporting any expensive automobile.
At Corsia Logistics we want you and your car to have a positive shipping experience, that’s why we only work with carriers with the highest safety ratings and proper insurance coverage. To ask us anything when shipping with Corsia Logistics, call us at (818) 850-5258. Ask us how to get your car ready for shipping or about the cost to ship a car. We explain how the process works and offer the best option for your vehicle and budget. Browse our Help Center for answers to frequently asked questions and our Blog for more tips and news. Thank you!