What is Contingent Car Insurance And Why it's Important For You

Posted by Novel Joy on June 24th, 2021

What is Contingent Car Insurance And Why it's Important For You When You Ship Your Vehicle Across the Country With a Car Shipping Broker

Transporting your vehicle with a car shipping company can leave the potential for accidental dents and damages. Because of this, you should consider taking out some insurance, to make sure that you are protected. Contingent car insurance can be a good option to explore. But what is this and why is it so important?

What is Contingent Car Insurance?

Most car transportation carriers will carry extensive insurance. This will ensure that they are protected for more events. This, in turn, means that claims made for damage to your car will be paid.

However, this isn’t always the case. For example, imagine that you are moving your car internationally on a cargo ship. Because the ship is sinking, the captain decides to jettison your vehicle. In an event like this, it’s unlikely that the shipping company will pay your insurance claim. This is where contingent insurance comes in.

This type of policy only comes into play when the general insurance policy doesn’t pay your claim. There are a few reasons why your claim might not be paid. In this example, the shipping company might not be covered for the events. Or they might have an insurance policy that limits their claim.

What Are the Benefits of Contingent Car Insurance?

The process of shipping vehicles can be risky. They might be dented or damaged during the trip. The driver could be involved in an accident. In some cases, your car might even fall off a boat or truck trailer. When this happens, you’ll want to know that you are protected by insurance.

If the initial insurance claim is denied, contingent car insurance will begin. This will help plug the gaps in the insurance policies. By doing this, your vehicle will always be protected from damage. Because of this, some shipping companies might be reluctant to transport your vehicle without this kind of insurance.

How Much Does Contingent Car Insurance Cost?

How much you will need to pay for this type of insurance will depend on a few factors. For example, the value of the car and the length of the journey will need to be considered. Usually, though, it won’t be a big expense.

How Do You Get Contingent Car Insurance?

Contingency car insurance is an optional policy. You will need to opt-in and pay some additional fees, to receive coverage. Usually, contingent car insurance will be provided through the car shipping broker. If not, you might need to contact your insurance company and obtain the policy in this manner.

Conclusion

If your vehicle is damaged during the move, you want to make sure that you are protected. Sometimes, though, the insurer might not want to pay your claim. In this case, you will be able to turn to contingency car insurance. While this might be optional, it will give you an extra layer of protection for your vehicle. Because of this, it is highly recommended for anyone moving their vehicle across the country.