Marine Insurance should be used while shipping cars overseas. Your decision of purchasing optional Marine Insurance should be based on the cost of the insurance vs. the value of the car. Nearly all owners of exotic cars, like Ferrari, Aston Martin & Bentley, shipped from the US to Europe purchase marine insurance because the benefits greatly outweigh the risks. For many people shipping an older run down car, the risk-to-reward ratio isn’t as big as for exotic car owners. However, if the person who is receiving the car cannot stand a financial loss in case of a shipping catastrophe, marine insurance should be purchased.
Most likely nothing will happen while shipping a car overseas. One thing all people should remember:
All Ships will rock while out to sea!
Pros:
- Vehicle will be insured for damage and or total loss
- If your car is lost in the shipment, it is covered
- If shipping by container, person items may be covered in case of total loss
- It’s cheap. More below.
Cons
- There is a $500 deductible if a claim is made.
- If shipping by container, any damage to the car resulting from personal items is not covered. So don’t pack things that may damage your car.
Deciding to purchase marine insurance is up to you. If the car is a gift from a relative and nobody will suffer from financial loss, then don’t buy marine insurance. For an exotic car with a value of $100, 000 usd, marine insurance will cost anywhere between $1, 500 – $2, 000. For a car which is valued at $5, 000, you can expect to pay less than $100 (that’s cheap)!
Read more about Marine Insurance.