Why Carrier Liability Is Not Enough
Under the Hague-Visby Rules a carrier's liability is capped by weight or by package, and the cap is calculated in Special Drawing Rights rather than the value of your vehicle. In practice a total loss claim against carrier liability alone can settle at a fraction of a car's market value, and only if you can prove the carrier was at fault.
Marine cargo insurance works differently: it is first-party cover on an agreed value, so the sum insured is fixed when the policy is issued and you do not have to prove negligence to claim.
What All-Risks Cover Includes
An all-risks marine policy covers physical loss or damage from external causes during the insured transit — collision, fire, heavy weather, water ingress, handling damage, theft of the whole vehicle, and general average contributions if the vessel declares it.
Cover normally runs warehouse to warehouse: it begins when the vehicle leaves the collection address and ends on delivery at the destination address or after a set period following discharge, whichever comes first. That means loading, lashing, discharge and inland legs are included, not just the sea passage.
- Total loss and partial damage at an agreed value
- Handling and lashing damage at either terminal
- General average and salvage contributions
- Inland transit at both ends within the transit clause
What Is Excluded
Pre-existing damage, wear and tear, mechanical or electrical breakdown, corrosion, insufficient packing and personal effects left inside the vehicle are standard exclusions. Damage arising from an undeclared modification or an inaccurate declared value can also void a claim.
This is why the condition report matters. Photographs at gate-in establish the vehicle's state before the voyage, and a claim for damage that already existed will not succeed.
Premiums and How to Claim
Premiums are quoted as a percentage of the declared value, typically in the region of 1.5–2.5% depending on the route, the shipping method and the vehicle. Container shipments are usually rated more favourably than RoRo because the vehicle is enclosed for the whole transit.
If damage is found at the destination, note it on the delivery receipt before signing, photograph it immediately, and tell us the same day. Claims are supported by the condition report, the arrival photographs, the Bill of Lading and a repair estimate — supplied together, most claims settle within a few weeks.
Frequently Asked Questions
How much should I insure my vehicle for?
For its full replacement value in the destination market, including freight and duty paid. Under-insuring reduces the settlement proportionally.
Is insurance compulsory?
It is not legally compulsory, but shipping an uninsured vehicle means relying on limited carrier liability. We recommend cover on every shipment and include it by default in our quotes.
Are personal effects covered?
Only if declared and specifically insured, and only in container shipments. Items left in a RoRo vehicle are never covered.
Does cover apply while the car is in port storage?
Yes, for the period stated in the transit clause — typically up to 30 or 60 days after discharge. Beyond that, storage cover must be extended.
Want marine cover quoted with your shipment?
Tell us the vehicle value and route and we will include the premium in your written quotation.