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Car Shipping Insurance – Do You Need Marine Insurance When Shipping a Vehicle?

When shipping your prized car, it’s easy to become preoccupied with all the logistical details and forget about the importance of having adequate car insurance already in place. However, having the right car shipping insurance is essential to protect your vehicle during transport. This is particularly true if you are shipping a high-value car or a vintage vehicle.

In this article, we will explore the reasons why having the right cargo insurance is essential when shipping your beloved car.

What is Marine Cargo Insurance?

Marine cargo insurance, otherwise known as marine shipping insurance, is an insurance policy that is put in place to protect your vehicle. While the name often confuses people, leaving them to believe that their goods are only protected as they are shipped over water, this is not the case. In fact, marine cargo insurance covers your car as it is transported over sea, road, or air.

Depending on your individual requirements, you should be able to arrange marine insurance with your auto transport company to cover you from door to door, port to port, or door to port.

What Does Marine Shipping Insurance Cover?

Marine shipping insurance covers the loss of or damage to cargo during transportation. This could include loss or damage that occurs as a result of accidents, collisions, natural disasters, theft, fire, jettison, piracy, or terrorism.

However, the exact coverage of marine shipping insurance policies may vary depending on the type of goods being transported, the shipping route, and the mode of transportation. Therefore, it is important to read and understand the terms and conditions of your individual policy to understand exactly what is covered and what is not.

How Does This Differ From Land Cargo Insurance?

Land cargo insurance differs from marine auto transport insurance requirements, as it only provides coverage for losses or damages that occur as your vehicle is transported across land. Therefore, if the shipping route for your car involves air or sea transportation, it’s important to consider purchasing marine auto transport insurance instead.

Do You Need Insurance When Shipping A Car?

The short answer is: no, you are not legally required to have additional auto transport insurance when shipping a car. But to ensure the best protection for your vehicle and goods, it is something that you should consider investing in.

If you don’t opt for additional insurance, you will still be covered to some extent by your carrier’s cargo insurance. Let’s find out some more about this:

Standard Car Carrier Liability Insurance

It is a legal requirement for all car shipping carriers in the US to have liability insurance. This will cover any damage that they cause to other vehicles or property while transporting your car. You should always request proof of the carrier’s insurance before proceeding with your shipment.

Car Carrier Cargo Insurance

Many auto transport companies will also offer additional cargo insurance, which covers damage to the car being shipped; however, this isn’t always the case. Importantly, this carrier’s liability and cargo insurance typically only extends to the car’s depreciated value and not its full replacement cost.

This means, for added peace of mind and financial protection, it is worth considering taking out comprehensive auto transport insurance.

How Much Coverage Is Enough?

As with any insurance policy, you should ensure that you read through the terms and conditions of your marine shipping insurance carefully before proceeding.

The amount of coverage that you will need will likely depend on various factors. This includes the value of your vehicle, the distance it will be traveling, and the specific risks involved in the transport process.

As a general rule of thumb, it’s a good idea to aim for coverage that is equal to the full replacement cost of your vehicle, including any custom modifications or upgrades. Some additional factors to consider when determining how much coverage you need might include the type of vessel that your vehicle will be transported on, the route it will take, and any potential weather or environmental hazards that could impact the journey.

Remember that despite being more cost-effective, the minimum amount of insurance offered may be insufficient to cover your prized vehicle.

Ultimately, it is best to work closely with your auto transport insurance company to determine the appropriate level of coverage for your specific car shipping needs. Make sure you get quotes from a few different auto transport insurance companies to make sure that you are getting the best coverage and value for money.

How Much Does Marine Shipping Insurance Cost?

The cost of car transport insurance can vary greatly, depending on the coverage that you opt for.

Of course, basic car carrier insurance is available to you at no extra cost, as this is a standard requirement for car shipping companies. However, this basic liability insurance offers limited coverage.

Average Cost of Marine Shipping Insurance

Generally speaking, marine cargo insurance typically costs around 1.5% to 2.5% of your car’s value. So, for example, if your car is valued at $30,000, insuring it will cost you between $450 and $700. The final cost will vary depending on your chosen auto insurance company, the shipping distance, and the type of insurance coverage provided.

If you opt for comprehensive marine shipping insurance, you will need to pay a premium for this. But this specialized insurance will provide you with peace of mind, knowing that your vehicle is adequately protected during transport. Most car owners believe that the added expense is worth it to ensure the safe delivery of their valuable assets.

Are There Any Hidden Costs Or Charges I Need To Be Aware Of?

It is important to remember that even if you opt for marine cargo insurance coverage, any personal belongings shipped inside your car might not be covered by default. Make sure to check your individual policy details and opt for supplemental coverage if this is required.

You should also check whether your chosen marine shipping insurance policy covers specialty items, such as spoilers. If not, you may have to pay for supplemental coverage for specialty items.

Also, don’t forget to factor in the excess, which is the amount you will need to pay out of pocket before the insurance coverage kicks in.

Can I Ship Personal Items In My Car?

Personal items stored in your shipped car are not typically covered by a standard car carrier’s insurance policy.

To adequately protect your personal possessions when shipping your car, you may need to purchase additional coverage.

If you have not arranged supplemental insurance, shipping your personal items in your car will be done so at your own risk. You may want to consider carefully packaging up your personal items and storing them securely in the trunk of your car during transport.

How Can I Arrange Marine Shipping Insurance?

Most auto transportation companies will be able to arrange your marine shipping coverage for you. However, this is usually something that you must inquire about, as it is not typically included in quotes as standard by most companies.

Step-By-Step Guide

So, how do you go about arranging marine shipping insurance? Here is a step-by-step guide to navigating the process:

1. Research and Compare Different Auto Transport Companies

Start by researching reputable auto transport services and companies that specialize in international car shipping and offer marine car shipping insurance policies. Check out each auto transport company and their websites and compare their services, customer reviews, and pricing. Be sure to consider the safety record of each car transport company.

2. Compare Marine Insurance Policies

Look carefully at the marine car shipping insurance policies offered by your shortlisted auto transport insurance companies. Compare the coverage options and prices of these policies to find the best fit for you.

3. Get Multiple Car Insurance Quotes

Be sure to get quotes from multiple top auto transport insurance companies and review these carefully, asking any questions you may have before agreeing to the insurance coverage.

4. Review the Policy Document

Before finalizing your chosen insurance coverage, thoroughly review the insurance policy’s detailed documentation. Make sure that you understand all terms, conditions, limitations, and exclusions to avoid any surprises later on.

5. Carefully Document Your Vehicle’s Condition

Before transporting your vehicle, ensure that you carefully document its current condition. Be sure to take photographs and make note of any pre-existing damages. This will provide vital evidence should you wish to file a claim in the future.

Filing A Claim: What If My Car Is Damaged During Transport?

If your vehicle has been damaged during transit, you should notify your auto-shipping company immediately. Should it be necessary, you should file a claim with your insurance provider as soon as possible. Acting swiftly will ensure that your claim is dealt with by your insurance provider in a timely manner.

Upon delivery, your auto transportation or car shipping company will perform a thorough assessment of the condition of your vehicle and compare this to the documented condition of your car prior to shipping. This information will be used to inform any claim.

A reputable auto transport company will aim to resolve your damage claims quickly and fairly. However, in the rare event that you feel unsatisfied with how your claim was handled, you can consider filing a complaint with the Better Business Bureau.

Sort Out Your Car Shipping Insurance Needs With CFR Classic

Ready to ensure the safe and secure transport of your prized vehicle? Choose CFR Classic for unparalleled international car shipping expertise!

Our experienced team specializes in shipping over 2,000 cars every month, providing comprehensive marine shipping insurance for your peace of mind. Don’t compromise on the protection of your valuable asset – trust CFR Classic for a smooth and worry-free car shipping experience.

Contact CFR Classic Today

Ensure your vehicle’s safety during transport – Reach out to CFR Classic now!

Joey has spent his entire teen and adult life in cars. Joey's father owned a Jeep store, and Joey had his own used car lot that he ran himself from age 22 until I was 30. At 30 years old, Joey got "out of" the car business and joined CFR Rinkens. Joey started when there were only 9 people at CFR, but the company grew to over 150 employees during his time there. When Joey started, CFR Rinkens was shipping about 40 vehicles per week from Los Angeles. Joey established locations in Houston, Miami, and New York and within the first year, CFR went to shipping 150 cars per week. Joey started as a customer service rep and later moved up to sales manager, operations manager, and marketing manager. Joey then moved to Europe for two years and spent the entire time traveling through Europe meeting with clients. In 2022, Joey and his partners purchased CFR Classic from CFR Rinkens and he returned to California to watch over the operation more closely.

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