When moving a car from one state to another, driving is sometimes not a viable option. This is why auto shipping companies exist to help people transport their vehicles as safely as possible. If you are like most people, you may have doubts about using this service.
This doubt may be because of the sentimental value attached to the vehicle or the cost of the car. You can read this https://yourwiseinformation.com/ to learn why we can get sentimental about our cars. Because of this, one of the most common questions people ask when using this service is “What happens if something happens to my vehicle while in transit?”. Well, the truth is, the chances of your car getting damaged while in transit when you use a reliable and experienced company are quite slim.
But then, anything can happen. Because of this a lot of people want to know if they need insurance when shipping their cars. In this article, we will answer this question and every other thing in between to help you safely transport your vehicle.
Are You Required to Get Shipping Insurance?
The simple answer to this big question is no. It’s not compulsory that you have insurance when shipping your car. This is because auto transport services are legally liable for any damage that may happen to the vehicles they transport.
So, the auto transport service you choose is the one required to have insurance, not you. However, it may not be quite this simple. The company’s insurance may be limited, and you may want better coverage. In a case like this, it won’t hurt to get additional coverage; this way, you can rest assured that your car is adequately covered.
Additional coverage is much more important when you want to ship a luxury, exotic, or classic vehicle. The choice of getting additional coverage is solely yours and may even be redundant as damage to vehicles in transit is not common. But doing it would make you feel less anxious about your car’s safety.
Minimum Coverage Requirements for Auto Transport Companies
Now you know that the shipping company is the party legally required to insure your vehicle. You also know that the answer to the question “Do you need insurance to ship a car?” depends on your preferences and needs. You are most likely now wondering how much coverage shipping companies have to provide.
Well, the coverage offered often varies between companies. However, most offer cargo and liability insurance. Typically, this offers coverage for any damage that may happen during loading, transit, and unloading. However, do not just assume that a company offers this; make sure that you take your time to find out the specifics of the company’s insurance.
Also, the only thing insured is your vehicle itself. Any other thing that may be inside is not usually covered. This is part of the reason people are advised to remove any personal items from their vehicles before shipment.
What to Consider When Checking the Company’s Insurance
It is not enough to believe the company offers insurance and leave it at that. Before you trust any company with your car, take your time to be sure of the specifics of the coverage. If you fail to do this, you may end up with regrets at the end of the day. With that said, here are 3 things to check when it comes to a company’s coverage.
Certificate of Insurance
Do not just believe the service provider when they say they are insured. Rather than taking their word for it, ask for proof, like their certificate of insurance (CIO). You can visit here to learn what CIO is all about. Doing this makes you certain of their claims and goes a long way in putting your mind at ease.
What is Being Covered
Ask to be sure the entire process is covered. Some companies only offer coverage during transit and would not be liable for damages that occur when the car is being moved from say the terminal to their facility. Therefore, choose a carrier that offers coverage throughout the entire process; from the moment you hand over your vehicle, to the moment you receive it.
You also need to be sure of the amount covered. Some policies only cover damages to a particular amount; once the repairs pass this limit, you would have to cover the remaining cost by yourself. If the amount is not something you are comfortable with, then consider getting additional coverage to be better prepared.
Who Insures Your Vehicle?
A lot of companies will assure you that your car is insured. Sadly, in some cases, the company shifts the coverage to the particular carrier that transports your vehicle. When this is done, and your car gets damaged, chasing after the carrier can turn into a frustrating and lengthy process. So, instead of subjecting yourself to this, get a carrier that offers direct insurance.
You are not legally required to have insurance when shipping your car. This is because auto transport companies often offer coverage for vehicles they ship. However, if you are not satisfied with what is being offered, you can opt for additional coverage to ensure your car is adequately insured.