The Importance of Car Shipping Insurance & What It Covers

Why Vehicle Transport Insurance Is a Must-Have for Every Shipper

When shipping a car—especially across long distances or international borders—many people focus on logistics like routes, costs, and timelines. However, one crucial element often overlooked is car shipping insurance. Without proper coverage, you risk significant financial loss if your vehicle is damaged, lost, or stolen during transit.

In this blog post, we’ll break down why car shipping insurance is essential, what it typically does and doesn’t cover, and how to make sure you’re fully protected when transporting your vehicle.

1. What Is Car Shipping Insurance?

Car shipping insurance (also called auto transport insurance or cargo insurance) is a specialized policy that protects your vehicle from damage or loss while it’s in the hands of a shipping company—whether by truck, ship, rail, or air.

Key Purpose:

Offers financial protection for physical damage caused during transport
Provides peace of mind for vehicle owners, especially for high-value or rare vehicles
Often required by law or port authorities for international shipping

It’s similar to how you insure your car for daily driving—only this policy covers risks that happen while it’s in transit, not on the road.

2. Why Is It So Important?

Even with the most experienced and reputable transport companies, accidents can happen. Weather conditions, human error, loading mishaps, and even theft can put your vehicle at risk.

Common Risks During Shipping:

Scratches, dents, or broken mirrors
Cracked windshields from debris
Flooding, fire, or storm damage
Crane or forklift damage (container loading)
Accidents during transport (e.g., truck or ship collisions)
Theft at ports or storage facilities

Without insurance, you may be fully responsible for repair or replacement costs, especially during international shipments where jurisdiction can complicate claims.

3. Is Insurance Included Automatically?

Most reputable shipping companies carry basic liability insurance by default. However, this coverage is often limited and may not fully protect the value of your car.

For Example:

A carrier might carry $100,000 in liability coverage total—but that could be split among several vehicles in one container or truck.
Damage must be proven to be the shipper’s fault (some policies only cover negligence).
Some policies exclude acts of nature like earthquakes, floods, or hurricanes.

Solution: Always ask for a copy of the policy and consider purchasing supplemental insurance for better protection.

4. What Does Car Shipping Insurance Cover?

While coverage varies by provider and policy, here are the most commonly covered items:

✅ Typically Covered:

External physical damage (scratches, dents, panel damage)
Accidents during loading/unloading
Transport-related fire or flooding
Theft or vandalism during shipping
Total loss of vehicle due to catastrophic failure (e.g., sunken ship)

❌ Not Typically Covered:

Pre-existing damage (always documented during inspection)
Mechanical failures (engine, battery, brakes, etc.)
Personal items left inside the car
Aftermarket accessories not permanently installed
Improper preparation (e.g., leaking fluids, low tire pressure)

Pro Tip: Take clear pre-shipping photos of your vehicle from all angles to simplify the claims process in case of damage.

5. Domestic vs. International Shipping Insurance

There’s a key difference between domestic and international shipping insurance policies:

Domestic Shipping:

Often covered under the carrier’s cargo insurance (required by law in the U.S.)
Limited liability coverage unless you opt for additional protection
May vary by transport type (open vs. enclosed)

International Shipping:

Marine insurance is typically needed for ocean freight
Covers risks specific to overseas travel: sinking, piracy, port mishandling
Required by many customs agencies to clear high-value vehicles

If you’re shipping a luxury, classic, or antique vehicle abroad, full-coverage marine insurance is highly recommended.

6. How Much Does It Cost?

Insurance pricing depends on several factors:

Influencing Factors:

Value of the vehicle
Transport method (RoRo, container, air)
Distance and destination
Level of coverage (liability vs. full coverage)
Deductibles and claim limits

7. How to Choose the Right Insurance Policy

Choosing the right policy means balancing coverage and cost while protecting your investment.

What to Look For:

Is the full declared value of your car covered?
Are natural disasters and theft included?
Is there a deductible, and how much is it?
How is damage assessed and documented?
Is third-party insurance available if the carrier’s policy is insufficient?

You can also get insurance from:

The shipping company itself (ask for upgrade options)
Third-party specialty insurers who focus on marine or auto transport

8. Filing a Claim: What to Expect

If your car arrives damaged, follow this process:

Steps to File a Claim:

Inspect your vehicle immediately upon delivery.
Compare it to your pre-shipment photos and condition report.
Document new damage with clear photos and video.
Report the issue to the shipping company or insurer immediately.
Submit all required documentation, including bills of lading, inspection forms, and proof of value.

Processing times vary, but most legitimate insurers handle claims within 2–6 weeks.

Final Thoughts

Car shipping insurance is more than a formality—it’s your safety net. Whether you’re shipping domestically or across continents, protecting your vehicle against potential loss or damage is not something to take lightly.

With the right policy, you’ll have the peace of mind that your investment is safe—no matter what the road (or sea) brings.

At Roadline Carriers Inc, we offer both basic liability coverage and optional full insurance policies tailored to your needs. Whether you’re shipping a sedan, SUV, luxury car, or classic collectible, our experts will help ensure you’re covered every mile of the journey.

Got questions or need a free quote?
Reach out today — our team is here to help you ship smart and safe.