The Role of Insurance in Vehicle Shipping: What’s Covered and What’s Not

You would be taking too big of a risk if you did not proceed with insurance. Since there is a possibility that your vehicle may get damaged during shipment, sometimes it may even get stolen or lost entirely. The financial and emotional costs of such an event can be heartbreaking. But with adequate insurance coverage, you are assured of the best care in case of accidents or unforeseen circumstances.

At uShip, we understand the value of insurance when shipping your vehicle. That is why we work very closely with our network of carriers to offer all types of insurance options that will provide full coverage for the car while in transit. What makes uShip different from any other shipping company? How does it work, and how does uShip protect your vehicle? This blog answers it all. Continue reading to learn more about the importance of insurance in shipping your vehicle.

Car Transport Insurance: The Safety Net You Need

Shipping a car from one location to another can be quite nerve-wracking. What if your car gets damaged during transport? What if it’s stolen or lost? These are types of questions that can give you sleepless nights. But, well, here is the good news: car transport insurance can provide the peace of mind you need.

Also referred to as auto shipping insurance, it will protect your vehicle from point A to point destination B. Most vehicle shipping companies are required by law to have adequate insurance to cover any damage that may occur during transportation. However, you should still examine their policy and make sure you are comfortable with the level of protection provided.

Although transportation insurance is not a requirement, as a car owner, it is a very wise decision to have your car insured while in transport. At one point, you will have to drive it to the drop-off point or drive it to the place of delivery; surely, you don’t want to drive an uninsured car. Again, your car insurance may help supplement any shortfalls in the carrier’s insurance if any issue arises.

So why is auto transport insurance essential? Here are just a few instances where it can be beneficial:

Hail damage: If your car is damaged by hail while in shipment, the carrier’s insurance could probably take care of it.
Accident en route: If your car should be caught in an accident on its way to you, damage may be covered through insurance offered by the carrier.
Theft or loss: Should your car be stolen or lost in transit, the insurance will be useful in the recovery.

At uShip, we understand how important it is to protect your vehicle during transport. We, therefore, closely interact with our pool of carriers and provide a range of insurance alternatives that comprehensively cover your car.

Here’s how we will protect your vehicle:

Carrier Vetting: We ensure the vetting of our carriers so that they meet our requirements for safety, reliability, and insurance coverage.
Insurance: All our carriers are required to be sufficiently insured to protect your vehicle and ensure its safety during transport. This includes liability insurance and cargo insurance, among any other types where this may be necessary.
Extra Insurance Options: We also have other additional insurance options available that give extra peace of mind to our customers. Such may be for damages, theft, or loss of your car while it is in transit.
Carrier Ratings: We enable our customers to rate and review our transporters for performance against insurance coverage and claims handling. That way, we can identify and work with the best carriers in the industry.
Claims Assistance: For any claims, we have a professional team to help you through the process. We will also work closely with you and the carrier to settle as quickly as possible with minimum inconvenience.

What’s Typically Covered by Vehicle Shipping Insurance

The shipment of your car should, therefore, be covered against any form of damage or loss. This becomes the point where insurance coverage comes into play in vehicle shipping. But what exactly does this policy cover?

Physical Damage Coverage

Many vehicle shipping insurances generally protect against physical damage to the vehicle. Such forms of physical damage may be traced to the following causes:

Accidents during transportation
Loading or unloading accidents
Severe weather conditions such as hail and flooding

This kind of cover is pretty important since it safeguards your vehicle against damages resulting from unforeseen happenings during the transition.

Theft and Vandalism Cover

What if your vehicle gets stolen or vandalized during transportation? Most of these policies also cover theft and vandalism. You must go through your policy in infinite detail to understand what is covered and what is not.

In search of theft and vandalism cover, here are some things to look out for:

Theft of the entire vehicle
Vehicle accessory or part theft
Vandalism, including scratches and broken windows

Coverage Limits and Deductibles

Of course, coverage ceilings and deductibles are essential elements in any insurance policy because they basically dictate the extent of protection one receives.

Coverage Limits: This is the maximum amount that your insurance company will pay in respect to a claim. Maximum coverage limits are commonly in the range of $50,000 to $100,000.
Deductibles: This is how much you are supposed to pay out of pocket before the insurance company chips in. Typical deductibles start from $500 up to $2,000.
Third-party insurance: When choosing any motor vehicle shipping insurance policy, make sure to take note of the coverage limits and deductibles that will adequately protect your vehicle.

What’s Not Covered by Vehicle Shipping Insurance

Shipping a vehicle demands a required knowledge of what your insurance policy will cover and what it will not. While most of them cover comprehensive physical damage, theft, and vandalism, some others are excluded that one needs to be informed of.

Personal Items Left in the Vehicle

This is a critical point; always take note: most vehicle shipping insurances do not cater to personal items inside the vehicle, which will include the following:

Worn clothing and accessories
Gadgets or electronics
Equipment or tools
Jewels or valuables

Also, to avoid any probable losses, ensure you get everything belonging to you from the vehicle before shipping. Take photos of the car and document the pre-shipping condition of the vehicle so that, should any damages happen while shipping, you can have records on your side.

Pre-Existing Damage

Another exclusion to be aware of is pre-existing damage to the vehicle. In case there are any existing damage, dents, scratches, or even mechanical issues with your vehicle, the car will not be covered under an insurance policy.

To avoid disputes based on this front, ensure:

Documenting the condition of the vehicle well in advance before shipping
Photographs and videos are taken of the existing damage.
The shipping company is informed about any pre-existing damage.

Damages Due to Lack of Maintenance

Finally, any damages that result from failure to maintain the vehicle properly may not be covered under the insurance policy. These include but are not limited to:

Fluid leaks
Tire blowouts
Engine problems

To avoid all possible inconveniences in the process, make sure you:

Maintain your vehicle properly
Inspect the condition of your car before shipping
Disclose any issues with its maintenance to the shipping company

How to Ensure Your Vehicle is Fully Protected

Your vehicle is a prized possession, so it’s extremely important to cover it fully during transportation. But how do you really know if you’ve got the right policy? Here are a few tips on how you can review your insurance policy for the right questions and whether you should buy additional coverage.

Reviewing Insurance Policy

Take the time to go over your insurance policy in and out before shipping your vehicle. Here are the things you want to look for:

Coverage limits: Understand what is covered and what is not.
Deductibles: Know how much is to be paid in case of a claim.
Exclusions: See if there are kinds of exclusions that will involve you.
Claims process: See how claims are dealt with and what is needed to file a claim.

Asking the Right Questions

This is where you get to ask your questions about the insurance coverage that is to be provided. Some good questions might include:

What does the policy cover? Know what is included.
What does the policy exclude?: Know if there are exclusions that could impact your coverage.
How does the claim submission process work?: Understand how to file the claim and what is needed.
What’s the deductible?: Know the amount that one will have to pay out of pocket in case of a claim.

Buying Additional Coverage

If you drive an extremely valuable or classic vehicle, consider purchasing additional coverage. Extra coverage may provide additional protection and peace of mind. Here are scenarios to look into for additional coverage:

High-value vehicles: If your car happens to be particularly valuable, then added coverage can be added to give it the needed extra protection.
Classic vehicles: If you have a classic vehicle, then added coverage for a classic car will help safeguard its value in light of the fact that such a vehicle is truly unique
Long-distance shipping: In cases where your car has to be shipped over long distances, added coverage will help guard against unforeseen contingencies.

How uShip Supports Your Insurance Needs

At uShip, we know how important it is to you to protect your vehicle while it’s in transit. That’s why we’re committed to serving up comprehensive options in insurance coverage and support through the transportation process.

Partnering with Insured Carriers

All our carriers are allowed to offer their services only when they have comprehensive insurance to cover all shipments. Therefore, you can be guaranteed that your vehicle will be well insured against many risks like damage, theft, or loss in transit. Our carriers are all heavily vetted and insured, so you will have the peace of mind that comes from knowing your vehicle is in good hands.

Providing Transparency in Insurance Options

We believe in transparency, and that’s why you can easily understand the insurance coverage options that are passed through us. Our platform makes sure that you get clear and transparent information on the insurance coverage each carrier offers for each shipment so you can make an informed decision.

Here is how we bring you transparency in the insurance options:

Policy Details: Detailed information in relation to every carrier’s insurance policy that can include limits, deductibles, or exclusions.
Easy Comparison: Our platform has made it easy for you to compare insurance coverage options from different carriers to provide the best protection plan your vehicle deserves.
Insurance FAQs: We have a fully packed section of FAQs in relation to insurance coverage and claims.

Customer Support for Insurance Claims

Feel free to approach our customer-support services to file a claim under insurance. We’ll be happy to serve you and assist you in the procedure involved in trying to settle your claim with all necessary support and backing in order to achieve an early and smooth settlement. Within the purview of our customer support services, we offer the following services:

Claims assistance: We assist in accompanying you through the claim process to explain the steps and procedures.
Carrier communication: We will handle the carrier communication for you all to make sure that your claim is processed as efficiently as possible.
Resolution support: We will work with you and resolve your claim to ensure that you are compensated accordingly.