Do You Need Insurance To Ship A Car? Transporting a vehicle from one location to another, whether across the country or internationally, can be stressful.
Many vehicle owners rely on professional car shipping services to ensure their cars reach their destinations safely. However, one crucial question often arises during this process: Do you need insurance to ship a car?
The answer involves understanding the risks associated with car shipping, the type of coverage provided by shipping companies, and whether additional insurance is necessary.
What Is Car Shipping Insurance?
Car shipping insurance is a type of coverage specifically designed by a professional auto shipping company to protect vehicles during transportation. Moreover, it ensures that if your vehicle sustains damage or is lost during transit, you can be compensated for the repairs or replacement.
Coverage Provided by Auto Transport Companies
By law, most auto transport companies in the U.S. are required to have liability insurance to cover damage caused by their services. However, the extent of coverage can vary widely, and not all scenarios may be covered, such as acts of nature or personal belongings left in the car.
Do You Legally Need Insurance to Ship a Car?
While you are not legally required to have your own insurance specifically for shipping a car, the shipping company must have liability insurance. However, having additional coverage through your personal auto insurance or a separate policy can provide an extra layer of security.
The Company’s Insurance Requirements
Before you sign a contract with an auto transport company, ensure they provide proof of insurance and clarify what is covered in their policy. Some companies may only cover damages directly caused by their negligence, leaving other risks unprotected.
Why You Should Consider Additional Insurance for Car Shipping
While shipping companies provide some level of coverage, there are compelling reasons to consider additional insurance which includes:
High-Value Vehicles
If you’re shipping a luxury, vintage, or high-value vehicle, the standard liability coverage provided by transport companies may not be sufficient to cover potential damages.
Protection Against Unforeseen Events
Auto transport company insurance might not cover all risks, such as extreme weather, theft, or vandalism. Hence, additional insurance ensures broader protection for your car.
Peace Of Mind
Knowing your vehicle is fully insured gives you peace of mind during the shipping process, especially for long-distance or international transport.
How To Determine If You Need Additional Car Shipping Insurance
To do so, you need to:
- Firstly, you have to check what coverage the Auto transport company offers. Request a copy of the company’s insurance certificate. Additionally, you can ask about coverage limits, exclusions, and claims procedures.
- Contact your insurance provider to determine if your current policy covers damage during shipping. Some personal policies may include limited coverage for vehicles in transit.
- Evaluate whether the standard coverage is adequate for your vehicle’s value.
- You must also consider the shipping method. Enclosed transport offers more protection but may still warrant extra insurance for expensive cars.
Steps To Purchase Car Shipping Insurance
Here are the necessary steps you’ll need when purchasing a car shipping insurance:
Compare Shipping Companies
Research and select a reputable company with comprehensive insurance options.
Speak To Your Auto Insurer
Inform your insurer about your plans to ship your vehicle and inquire about coverage extensions.
Purchase Additional Coverage if Necessary
If neither the transport company’s nor your auto insurer’s coverage is sufficient, you may have to purchase additional insurance from a third-party provider.
Document The Vehicle’s Condition
Take photos of your car from all angles before shipping. Share these photos with the shipping company as a reference in case of damage claims.
Frequently Asked Questions
Here are some frequently asked questions you can check out:
Is Insurance Mandatory When Shipping A Car?
While you are not required to purchase separate insurance, shipping companies are required to carry liability insurance. However, purchasing additional insurance is recommended for better protection.
Does My Personal Auto Insurance Cover Car Shipping?
It depends on your policy. Some auto insurance plans may extend coverage to vehicles during transit, but you have to confirm this with your insurer.
What Does The Shipping Company’s Insurance Usually Cover?
Shipping company insurance generally covers damage caused by their negligence during transit. However, it may not cover acts of nature, theft, or items left inside the car.