Everything You Should Know About Vehicle Shipping Insurance

It’s most important to ensure that your luxurious car is properly protected throughout the transportation path whenever you need to ship your car to a new location, as well as your desired location. Many people think of finding the right auto transport company, but overlook the importance of having good insurance coverage. While most reliable car shipping companies include some level of insurance in their services, understanding your options can save you from unexpected costs and offer peace of mind during transit.

 

In this blog, we’ll take a look at the different types of vehicle shipping insurance, what you need to know about the coverage, and how to select the best option for your car when choosing a car shipping company in Orlando, wherever you need.

 

Understanding Vehicle Shipping Insurance

 

There are multiple insurance Types available for shipment to your destination. Each offers a different type of protection. These choices are worth knowing, too. Only these coverages can help you how to choose the appropriate coverage. Depending on variables including the value or cost of your car, the route on which it is travelling and how much risk you’re comfortable assuming.

 

The same goes for local professional car transportation, although any reputable service provider will include some insurance in their coverage if you go with them. But you might also require more protection based on your shipment. Here’s a closer look at the types of coverage available.

 

Types of Auto Transport Insurance Coverage

 

You want which type of insurance coverage, it depends on the kind of protection & safety you need and on the other hand what the shipping company is providing. There are the most common types of coverage that are standard liability coverage, gap insurance, and supplemental coverage.

 

Standard Liability Coverage

 

Standard liability insurance is the most basic form of coverage. This coverage is always included in reliable car shipping companies' services. If damages are caused by the carrier’s negligence during the transportation process, then this coverage will protect your vehicle. However, this coverage does have limitations.

 

For instance, standard liability coverage typically does not cover damage caused by "acts of God,". Such as severe weather, storms, hurricanes or natural disasters. You should know that this also doesn’t cover mechanical or electrical issues that may arise during transport, nor does it protect personal items left in the vehicle. The coverage limits usually range from $50,000 to $1,000,000 per vehicle, depending on the company and the nature of the shipment. 

 

Gap Insurance

 

Gap insurance is particularly useful if you're still making payments on your car. This type of insurance covers the difference between what you owe on your auto loan and what your vehicle is actually worth if it is damaged beyond repair during transport.

 

Without gap insurance, you could end up paying the remaining balance on your loan even though your vehicle has been lost or damaged. This is especially important for newer vehicles, as they tend to lose value much faster than the loan balance decreases. Gap insurance helps to eliminate this financial risk, ensuring that you’re not left with payments on a car you no longer have.

 

Before choosing gap insurance, check whether your existing auto insurance policy already covers this. Many comprehensive car insurance policies offer gap insurance or allow you to add it at a low cost.    

 

Supplemental Car Shipping Insurance

 

For extra protection, many car shipping companies offer supplemental insurance options. These options provide more coverage than standard liability insurance and are helpful if you have a high-value vehicle or need additional protection for certain risks.

 

Comprehensive coverage is a common supplemental insurance option. It covers a broader range of potential damages, such as theft, vandalism, or damage from natural disasters. This coverage is more expensive but provides peace of mind, especially if you’re shipping a valuable vehicle. Some car shipping companies even offer tiered supplemental insurance options, where you can choose the level of coverage that best suits your needs.

 

Custom insurance policies are also available for vehicles with special characteristics, such as classic cars, exotic cars, or vehicles with extensive modifications. These policies are tailored to address the specific value and unique features of your car, ensuring it receives the appropriate protection during transit.

 

Federal Motor Carrier Safety Administration (FMCSA) Requirements

 

The FMCSA has defined minimum insurance policies of $750,000 for general carriers and $5,000,000 for carriers transporting non-hazardous or hazardous materials. These rules are in place to protect consumers and to make sure that auto transport carriers have enough insurance coverage for the vehicles they are hauling.

 

By law, auto transport companies are required to have a minimum amount of public liability insurance (including bodily injury and property damage). The minimum amount required for most carriers is $750,000, although carriers that haul hazardous cargo may be required to obtain coverage over the minimum requirement.

 

Make sure to check any vehicle transport company you are considering using to ensure they are FMCSA compliant with regard to insurance. This is a crucial step to be sure your car is hauled with the proper insurance coverage.

 

How to Choose the Right Vehicle Shipping Insurance

 

Choosing the right insurance for shipping your vehicle is important for protecting your car and avoiding unnecessary costs. Here’s how to make an informed decision when it comes to vehicle shipping insurance.

 

Assess Your Vehicle’s Value and Coverage Needs

 

Start by considering the value of your car. The more valuable your car is, the more comprehensive the coverage you will need. For instance, if you're shipping a luxury or exotic car, basic liability coverage may not be enough. It’s also important to consider the age and condition of the vehicle. Older cars may not require as much coverage, but rare or classic vehicles may need specialised protection.

 

You can use tools like Kelley Blue Book or NADA Guides to estimate the current value of your vehicle. This will help you determine how much coverage is appropriate.

 

Understand the Terms of Your Insurance Policy

 

Before finalising your insurance, make sure you understand the terms and conditions. Pay attention to the coverage limits, deductibles, exclusions, and the claims process outlined in the policy. Exclusions are especially important to understand because they list what is not covered, such as pre-existing damage, mechanical issues, or natural disasters like floods or hurricanes.

 

Knowing the exclusions will help you decide if you need additional coverage for specific risks that aren’t included in the policy.

 

Speak with Your Auto Transport Provider

 

A good car shipping company will be happy to help you navigate your insurance options. They can provide recommendations based on your car type, shipping route, and any specific concerns you may have. Their experience will help you make the best choice for your situation, ensuring you get the right protection at a fair price.

 

Why Choose the Cheapest Car Shipping Company in Orlando, USA

 

Price is usually a big consideration when you're choosing car shipping companies. But it’s worth remembering that all cheaper isn’t always better when you’re in the market for car transport and insurance coverage. Be sure you understand what’s covered and what isn’t in the price, and don’t settle for less protection than your car requires.

 

If you are looking to ship a car to Orlando, USA, you’ll find that there are quite a few cheap auto transport options available, but you will want to make sure the cheap car shipping service you use also provides excellent coverage. Finding a company that can give you a competitive rate without cutting the quality of insurance protection is important.

 

Conclusion

 

Planning is the key when shipping your car, and knowing what your insurance covers is a necessity. While basic insurance may come included from a lot of Orlando car shipping companies, other coverage options — gap insurance and supplement insurance — give you extra peace of mind. Do check the value of your car, be sure you understand the terms of the insurance and talk to your auto transport company to ensure that you are covered effectively.

 

To ship your car, make sure you use a reputable car shipping company that complies with federal regulations and carries the appropriate insurance for your situation. With the appropriate insurance and steps to protect your vehicle, you can relax knowing that your auto transport will be both safe and utterly stress-free.