Insurance usually covers cars from the moment they leave the showroom. It is third party insurance that relieves car owners from financial liabilities in case the car is involved in any incident that requires third party compensation. However, this does not help car owners to recover damages, for which you need additional insurance coverage. It is known as comprehensive insurance, and it is optional.
However, when you are shipping the car overseas, this insurance does not hold good during transportation. You have to take a marine insurance policy to cover the risks of damage and loss in transit. The specialty of transit insurance is that it is valid between specific points of transportation. The insurance usually commences from the port of loading and ceases as soon as the vehicle is handed over to the consignee. This article explores what the extent of coverage is, what you can expect and what the conditions for claiming damage are.
When transporting vehicles, shipping companies such as shipoverseas.com handle the transportation of cars to foreign countries. They usually have limited liability for damage. As stipulated by the Carriage of Goods at Sea Act, they are liable to pay only $500 for damages. Since this is a paltry sum, experts recommend that you take a marine insurance policy for covering the value of the vehicle against damage and loss that occurs in transit. The amount you want to insure is your discretion, and the shipping company can arrange the insurance policy by paying @ 1.5 percent of the value. A standard deductible of $500 is applicable regardless of the policy value.
Comprehensive insurance is ideal
When shipping cars outside the country, it is recommended to have a comprehensive insurance policy because the car has to be handed over to the shipping company at the loading port. Moreover, transit insurance is applicable between the ports of shipment and commences after the vehicle gets on the ship. The vehicle must be handed over to the shipping company at the port of loading and queued up for shipping lines. If damages occur to the vehicle before loading it onto the ship, you will be protected by the comprehensive insurance cover.
What is covered by transit insurance?
Only the vehicle is covered by transit insurance, and not any personal goods that tag along with it. You cannot send personal items along with the cars that are booked on a roll on roll off mode of transportation, but it is allowed if you choose shipment in containers. In the latter case, even if the goods are insured you are not paid for damages but only for loss. If the vehicle gets damaged due to the items that are going along with it, it will not be covered by insurance.
Unless there is an absolute necessity for sending personal goods along with the vehicle, it is better to avoid it. Things might get complicated not only for insurance but also from the import/ export regulations that vary between countries.
Author bio – Kenneth Gonzalez is the owner of a clearing agency that handles vehicle transportation across countries. He has a professional relationship with shippingoverseas.com, the company that specializes in transporting vehicles to many countries. Nature attracts him greatly, and he is an avid bird watcher.