Depending on the situation, shipping a car may appear quite a unique task, mainly when there are uncertainties about what could happen to the vehicle during transit.
Contingent cargo insurance comes into play for this reason: a safety measure to guarantee your vehicle is covered every mile of the trip.
In this guide, you will learn about what contingent cargo insurance is, why it is crucial, and how it ensures the safety of your car during the shipping process.
Contingent cargo insurance may be defined as an insurance coverage plan that targets the vehicles to provide cover during transportation.
Despite being expensive, it is an additional layer to incur if the carrier's primary insurance does not respond to a loss.
For instance, if a carrier policy rejects a claim for the cost of damage or loss in transit, the contingent cargo insurance means the shipper or freight broker won't be out of pocket for it.
It covers the chasm between the principal, the carrier, and the freight broker, offering blanket coverage.
Suppose you have just transported your car for many kilometers, hoping it will be in good condition upon arrival.
But then what - then your car is damaged in transit or during the transportation process, and now the insurance provided by the carrier has kicked the claim.
This scenario shows two things: contingent cargo insurance's importance.
Here's why it's a must-have:
Contingent cargo insurance plays a vital role for various stakeholders in the shipping process:
A guarantee that they would not damage your property is not just a cliché phrase; it is a testimonial to what a company aims for and takes responsibility for.
This guarantee provides a warranty that every damage in shipping will be compensated through insurance costs.
Contingent cargo insurance offers various coverage options tailored to specific transportation needs:
Not all contingent cargo insurance policies are created equal. When selecting coverage, consider these factors:
Absolutely. However, freight brokers do not have any legal obligation to contract contingent cargo insurance even though it is mandatory in the sector.
Hence, contingent cargo insurance has been regarded as an essential tool in the cargo shipping of cars.
It also ensures that shippers, carriers, and freight brokers are financially shielded in case of an incident.
Here's what you need to remember:
Shipping your car should be a seamless experience, free from unnecessary stress.
With contingent cargo insurance, you can rest assured your vehicle is in capable hands, no matter what challenges arise.
Ready to ship your car?
Get a free quote today and experience the confidence that comes with Universal Transit's damage-free guarantee and comprehensive insurance coverage.
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