When delivering a car, the most important thing is that it should be protected during transport. Car transport insurance policy is an essential coverage provided by the insurance company on the vehicle while transit. It is always a good idea to take out car transport insurance no matter what vehicle you are shipping. Likewise, you should take it out if you are moving it from a location to another.
In this blog, we’ll break down what car transport insurance coverage is, the different types of insurance coverage available and why you should ensure that your vehicle is adequately covered while being shipped.
What is the car transport insurance?
Car transport insurance is coverage given by the auto transport company to protect your vehicle while it is being transported from one place to another. This transport coverage protects against damage, theft, or loss while the vehicle is being transported in an open carrier or via an enclosed transport.
With car transport insurance, you will not need to worry about any damage to your car during its transport. A majority of credible auto transport companies offer insurance coverage as part of their service. However, the level of coverage and other specifics can largely differ depending on the auto transport company you choose. Thus, having a clear understanding of what is included in their insurance coverage is important.
Car Transport Insurance: Types of Coverage
There are various kinds of insurance coverage for transporting a vehicle. We will discuss the different forms of car transport insurance coverage and what they usually cover.
1. Insurance against liability
Most auto transport contracts include simple liability insurance as their most basic coverage options. The insurance covers damage during transit because of accident or mishap to your vehicle.
In general, an accident or a collision where you take another truck or other vehicle / object is covered by liability insurance.
Consequently, most shipping transports won’t insure minor scratches, dents or cosmetic damage; plus, coverage won’t necessarily apply to all.
Transport companies typically offer liability insurance as standard. However, you should check whether this liability coverage is sufficient to fully protect your vehicle.
2. Freight Insurance
Cargo insurance provides higher levels of protection than basic liability coverages. That type of coverage protects your vehicle against a wider array of potential hazards while on the road, including thief, vandalism, fire, and natural disasters.
Cargo insurance covers damage or loss caused by accidents, inclement weather, theft and vandalism.
If you’re shipping a high-value car or your vehicle will be enclosed in a carrier, get some cargo insurance. Cargo insurance offers you more coverage than basic liability insurance.
When renting auto transport services, you have to ask whether they include cargo insurance and what it protects unless you want your car to get damaged.
3. Thorough Insurance Protection
Generally given as an optional extra, comprehensive cover provides a high level of protection. This coverage will not only cover accidents but also hail damage, theft, vandalism, and other unforeseen events that might happen while the vehicle is being towed.
This type of insurance insures you against nearly all damages from an accident, the elements, theft, fire, and more.
For the classic or luxury car, full coverage is highly suggested for maximum protection while on the shipping truck.
Although comprehensive insurance coverage is more expensive, your vehicle will be protected in almost all circumstances.
4. Insurance policy specifically covering a select value
Some transporters do offer specific value coverage which is essentially giving your vehicle a particular value while the transport takes place. Your car may have a high market value, rare options, or special equipment that this cover can help with.
Thus, what does it cover? Basically, in case your car gets damaged or lost, you get compensation as per the agreed value of the car and not the depreciated market value.
If your car is worth something sentimental or expensive, then you want that coverage to pay for the car’s full value.
When your vehicle is rare or expensive, asking for specific value coverage when shipping it will stop you from ringing in the new year with financial loss if damage occurs.
The Reason for Car Transport Insurance Coverage
While the risk of damage is low, sometimes accidents can happen while auto transport. With everything from road debris to bad weather, there are many ways things can get damaged or lost in transport. Why you require insurance coverage on car transport.
1. Mind at Peace
It is hard to ship an expensive vehicle without stress. Knowing that your car will be covered in the event of damage or theft during transportation provides you with peace of mind. You won’t have to worry about unexpected events ruining your event or costing you a fortune.
2. Shielding From The Unforeseen
Car transport companies are careful, but accidents do happen. When you have car transport insurance coverage in place, you don’t need to be anxious or worried about the unexpected circumstances which might arise. Also, any damages during the transit will be covered and you won’t have to pay from your pocket.
3. Coverage for Unexpected Occurrences
In rare circumstances, your vehicle could end up damaged because of natural disasters like storms floods and wildfires. If you don’t have insurance, you will have to pay for repairs or replacement yourself. When you have suitable coverage in place, these unexpected incidents are tackled to minimize your risk.
4. Personalized Safeguarding
Vehicles carry different degrees of risk when it comes to shipping. You can choose the best car transport insurance for your family car, classic or sports car depending on the value and condition of your vehicle.
At 1st Car Shipping, we specialize in a variety of vehicles, granting customizable insurance options to our clients. Whether your car is a standard model, luxury vehicle or classic car, we can tailor the insurance to your needs.
Ensure Proper Coverage for Your Vehicle
You should check your transport company’s insurance before you ship your car. This is to make sure your vehicle will be covered and protected. This is how you will get the right coverage.
Before booking your shipment, ask what type of cargo insurance is provided and ask what the price consists of.
Read the Fine Print: Ensure you understand certain limitations and exclusions related to the insurance you are paying for. Encourage questioning about the specifics of coverage and exemptions.
Look into getting further coverage in case the other one does not cover you comfortably enough for your own.
Snap Pictures of Your Car: Before the pick-up, take important images of your vehicle so that you have proof of its condition. It can be used as proof of damage that occurred during shipment.
At 1st Car Shipping, we offer comprehensive insurance coverage and work hard to ensure your vehicle is covered in full during transportation.
Get Adequate Insurance Coverage to Safeguard Your Vehicle
Car transport insurance coverage is a vital part of the shipping a car process. Having shipping insurance for your car can bring numerous benefits. It provides extra coverage in case of any damages, accidents or other incidents that may occur during the shipping process. By knowing the types of coverage available and working with a reliable auto transport company, you can help to ensure your vehicle is protected during its journey.
At 1st Car Shipping we have insurance coverage that is customized to your needs. Give us a call today for a free quote and secure your vehicle with the best insurance.
