How Does Insurance Work For Cars Being Transported?

Your car should have insurance. The way insurance works depend on what is covered. To ship the car, you have to consider what existing damages are present on the car. Therefore, the insurance company offers various types of coverage. Car being towed, are transported or shipped and are in transit are covered differently to cars being driven and involved in an accident on the road. Regardless of whether the car was sitting on the back of a truck, in a shipping container or on the road, any car should have an adequate amount of coverage and be insured. Sometimes the cost of insurance can vary from car to car, antique and exotics car need special policies but also incurs higher premiums. From the point of view of cars being transported, your car may not be protected contrary to towing companies advising you that your car is covered by their liability insurance. If you choose a car towing company, they will offer you warranty service.

Car transport should concern the insurance basics. Department of Transportation has already outlined the requirements of insurance. The cargo coverage requirements would protect the commodities brought by the carrier. The shipping car for more than $15,000 usually will get insurance. The insurance company will offer and explain the policy limits and everything you have to know. The insurance limit could vary, but some of the companies will not cover some damages. However, the car towing company has its own calculation about it. Based on its experience in transporting cars, the company understands how to prevent the risk during towing. In addition, the company understands how to increase profits by selling insurance policies as an underwriter.

Acts of terrorism, rock chips, glass damage, natural disasters including earthquake and flood, employee theft, and negligence are not covered by the your car insurance policy when the car is being transported. The towing company’s public liability insurance only protects their business in the event the truck was to roll over and damage any third party assets being carried. The risks on the road are high, but the fact of some exceptions from the insurance company cannot be doubted.

Insurance for goods in transit can be a grey area, better regulation in the industry is required so insurance claims can be settled without restraint. It is important to understand the product disclosure statement from any insurance company, whether going through the towing company or finding your own goods in transit insurance. Remember if the document is a standard procedure for the insurance industry. The additional insurance may be needed to protect you from financial risks. Depending on the cargo and logistics companies, shipping cars would be similar to moving furniture. A car towing company understands how to deal with the insurance company. Although you need to pay more, you will get the best service when transporting your car. Insurance is a must, you do not necessarily need it but when you do need it, you are unable to buy it.