Checked against official sources on 12 October 2026. Rules change, so we confirm the details for your shipment when you book.
The short version
- Your normal car or caravan insurance usually stops at the wharf. Check your policy, but most don't cover sea transit.
- The shipping line's liability is capped by international conventions at an amount per package or per kilogram, which is often far less than a vehicle is worth, and only if the loss was their fault.
- Marine transit insurance covers the vehicle for an agreed value from collection to delivery, whoever was at fault.
- Phoenix Shipping doesn't sell insurance. We recommend you arrange your own cover with a marine insurer or broker before the vehicle is collected.
Why the shipping line won't cover the full value
Sea carriage is governed by international rules (in Australia, the Carriage of Goods by Sea Act). They limit what a carrier pays to a set amount per package or per kilogram, and carriers aren't liable at all for some events, such as heavy weather or a fire they didn't cause. For a car, caravan or excavator that limit is usually a small fraction of its value, and you'd still have to prove the carrier was at fault.
What marine insurance covers
| Type of cover | What it usually includes | Best for |
|---|---|---|
| All risks (Institute Cargo Clauses A) | Physical loss or damage from any external cause during transit, subject to the policy's exclusions: dents and scratches, theft of the whole vehicle, water damage, fire, and loss overboard | Most cars, caravans, motorhomes and high-value units |
| Total loss only (Institute Cargo Clauses C) | Only major events such as the ship sinking, fire, collision, jettison or a general average claim | Lower-value vehicles where cost matters more than minor damage |
General average: the risk most people haven't heard of
If a ship is in danger and the master sacrifices cargo or incurs extra costs to save the voyage, every cargo owner on board shares the cost in proportion to the value of their cargo. This is called general average. Your vehicle can be held until you pay a security deposit, even if it was undamaged. Marine insurance covers your share and provides the security, so your vehicle is released.
What's usually excluded
- Damage that was already there before collection, which is why you should photograph every side before handover.
- Mechanical, electrical or electronic breakdown that isn't caused by an accident in transit.
- Wear and tear, rust, and gradual deterioration.
- Personal belongings left inside the vehicle.
- Loss caused by poor preparation, such as leaks or loose items, or by delays.
How to arrange it
- Get quotes from a specialist marine or transit insurer, or ask an insurance broker. Some car insurers offer transit cover as an extra, so ask yours first.
- Insure for the right value. Many policies use the vehicle's value plus freight, plus a margin (often 10%) for the extra costs of a claim.
- Make sure cover starts when the vehicle is collected, not just when it's loaded on the ship, and runs until delivery at the other end.
- Give the insurer the route, the vessel if known, the vehicle's value and photos of its condition.
- Keep the policy and the insurer's claims contact with your shipping documents.
If there's damage on arrival
- Inspect the vehicle at delivery, before you sign anything, ideally in daylight.
- Write any damage on the delivery receipt and photograph it straight away.
- Notify your insurer, and us, within the time limits in your policy. These can be as short as a few days.
- Keep the damaged parts and don't start repairs until the insurer has agreed.
This guide is general information, not insurance advice. Policies differ, so read the policy wording and ask the insurer about anything you're unsure of.
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Common questions
What does marine insurance cover?
All-risks cover protects against physical loss or damage from any external cause during transit, subject to exclusions. Total-loss cover only pays out for major events such as the ship sinking, fire or a general average claim.
Do I need marine insurance to ship a car?
It isn't compulsory, but the shipping line's liability is limited by law to a fraction of most vehicles' value, so without it you carry most of the risk yourself.
Does Phoenix Shipping arrange insurance?
No. We recommend you arrange your own marine transit cover with an insurer or broker before the vehicle is collected, so it's covered from pickup to delivery.
Will my car insurance cover it while it's shipped?
Usually not once it's at sea. Ask your insurer whether they cover sea transit, and get it in writing.