Auto Shipping Insurance IssuesInsurance for your car is just as important when it is being shipped even tough it is not going to be driven. Though cars seldom incur damages whilst being transported, it is advisable to be prepared in case of any unforeseen eventuality.
Understand minimum insurance requirements
It is a requirement for all legal auto transporters to carry liability as well as cargo insurance. What this means is that your vehicle should be covered by a properly insured car mover should any damage occur during shipping. The amount of coverage and the terms of the insurance are different for different companies, so you should carefully inspect the coverage offered by your transporter.
It is important to request a potential auto transporter to show you their insurance certificate copy. They are required by law to show you a copy of this certificate so do not hesitate to ask. The certificate can be verified with the transporters insurance company as well as with the Department of Transportation at their website www. safersvs.org
Is the minimum enough?
While you do get some amount of protection through the amount of liability and cargo insurance, chances are that the minimum coverage that the transport company offers is way below the real car value. You would be equally surprised by what the insurance of the carrier covers and what is not. It is up to you to find out the terms and conditions of the insurance policy of the transporter.
Here are some questions you could ask about insurance:
- What is the kind of damage that insurance covers?
- Are just specific car parts such as the body of the car covered?
- Are there ay deductibles?
- What is their coverage limit? (Most of the companies cover only the Kelley Blue Book car value)
- Are specialty items including ground effects and spoilers covered?
- Do you have the option of purchasing additional coverage?
Ask your auto insurance agent to what extent your car will be covered by your personal insurance during transport. Some insurance companies provide different coverage for cars during transit. Even if your vehicle is not covered by your insurance policy, it is a good idea to inform your insurance company about your plans to transport the car.
If you need to make a claim
Suppose you notice that your car did suffer some amount of damage during transport make the appropriate notes on the "Bill of Lading" and make sure the form is signed by the driver before you accept the car. It is also a good idea to take photographs when you are documenting damages. If it is night when the car is being delivered, take a flashlight along and use it to carry out a proper inspection of the car.
Your car will most likely be delivered in no different condition than when it was picked up. In case there are any damages, your shipping as well as your insurance companies should be contacted immediately. If you have taken the trouble to inspect the insurance policy of your transporting company you should not have any problems. A reputed shipping company would prefer to settle the claim as soon as they can. If you feel there has been a certain level of unfairness a complaint can be filed with the Better Business Bureau or any of the other professional organizations that the company may belong to. Remember however that this may never happen. Taking the time to do some research on your shipping company and getting your car properly prepared for transport will guarantee you a painless experience.