Car shipping insurance – questions to consider
- Is insurance included in my shipping rate?
- What is the insurance coverage limit?
- What type of damage does it covered?
- Does insurance cover personal belongings?
- Do I have to pay any deductible?
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 the auto transport insurance.
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 and your broker to verify that insurance is current.
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.
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.
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.
It is important that you do an 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.
If you were thinking to 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, itmes will not be insured in case of damage or theft.
Your personal belongings may be protected under your home insurance policy. Talk to your home insurance agent to learn details.
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. 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 only work with select group of carriers with the highest safety ratings and proper insurance coverage.