Car Shipping Insurance - What is its importance?
Car Shipping Insurance - What is its importance?
Blog Article
Car shipping insurance covers all the policies to protect your vehicle during shipping. The auto hauler in the US is responsible for providing adequate insurance. You must not ship a vehicle with any auto transport company that doesn’t have sufficient insurance.
Federal-mandated Shipping Insurance:
According to the federal motor carrier guidelines, all auto transport companies in the US must maintain insurance of $750,000 or more. FMCS mentions this limit to ensure greater shipping safety.
Condition for Shipping Insurance
The insurance policies vary depending on the type of vehicle and the severity of the damage. A few car shipping companies provide small insurance for damages caused by natural conditions, such as rain, snow, or theft, during shipping.
There is no insurance policy to protect the personal items left in the cars. Some shipping experts refuse to ship a vehicle with any personal item or add additional charges. You must contact the shipping company for the details of the insurance policy.
Types of Auto Transport Insurance:
There are three types of auto transport insurance available during shipping. The type you choose depends on the conditions or methods you are using to ship a car. You can ship a car by hiring a shipping company or connecting with a broker. The auto transport broker provides a connection between you and the shipping company. It is better to haul an auto hauler on your own and maintain a direct connection with a shipping company. It will be safer for your car. The types of auto transport insurance are:
Carrier Insurance:
The carrier's insurance covers damages such as scratches, theft attacks, fire damage, or any other damage that occurs during transit.
Carrier insurance does not cover insurance for your personal items. Make sure to remove all personal items before shipping your car.
Broker Insurance:
It is only a policy that provides supplemental insurance during the payment process. Such insurance does not directly protect vehicles during shipping.
Customer Insurance
It is an optional insurance policy that applies when the carrier's insurance does not cover the damage to the car during shipping.
Requirements of Car Shipping:
Cargo Insurance:
Cargo insurance is applicable when any damage occurs during loading, unloading, or transportation of the vehicle. Most insurance policies provide coverage of $150,000 and $350,000 for the vehicle. This amount will vary depending on the type of damage and the nature of your vehicle.
Importance of Car Shipping Insurance:
Car shipping insurance protects the vehicle from damage during shipping. The value of the car will be easily maintained.
Financial Protection:
The issuance policy covers the cost of replacing and repairing the vehicle. This cost is provided when damage occurs during shipping.
Protection and Safety:
The shipping company is responsible for the proper safety of your car, so you don't have to worry about any issues during shipping.
Peace of Mind:
If your car is insured, you will be fully relaxed.