Why Marine Insurance Is Important!

Look, I know what you might be thinking. The classic fear tactic to get you to purchase another pointless add-on as part of your car shipping package. Well, when it comes to marine insurance, this isn’t the case! 

Marine insurance is what we call insurance coverage when importing cars to Australia or exporting. The process of importing vehicles into Australia means that your car goes through many hands along the transport chain. Regardless of whether the journey is short, like car shipping NZ to Australia, or long, like car shipping UK Australia. 

Although not foreseen with the best practices in mind, things can go wrong. If your vehicle is at fault for any surrounding damage, you may be liable for more than you think. That’s why having marine insurance at your disposal is a great cover for you during the Australia car shipping journey. 

We’ve taken the time to break down some of the key points regarding marine insurance. From unforeseen accidents to liability coverage, theft or vandalism, peace of mind, and affordability. Let’s get straight into it.

Accidents Really Do Happen

Picture this… your vehicle is transported on a truck from pick up to a delivery port. After, it is either packed into a container or driven into a RoRo vessel by a port worker. Next, your vehicle is at sea in what can be described as a multi-level car park on a boat. Depending on the journey, your vehicle may stop at a transit port, change vessels, and continue the journey across oceans. Finally, your vehicle arrives at the destination port and is most likely transported from the port to a compliance workshop. Only then you can pick it up or get it delivered. 

You can see the journey of car shipping Australia and global ports is a multi-step process with lots of exposure. Things like a scratch of paint, a collision with another vehicle, broken glass, and water damage have all happened before. Taking the marine insurance option will help you cover the costs of any damage minus the standard claim excess fee. 

Liability Coverage

In February 2022, a fire broke out on the Mitsui OSK Line (MOL) RoRo vessel, Felicity Ace. Thankfully, the 22 crew members were able to escape the fire and evacuate. Meanwhile, thousands of vehicles, some including brand new luxury cars from brands like Audi, Betley, and Porsche were lost. Imagine importing classic cars to Australia and being on that vessel…

A similar incident happened back in 2019 with fire spreading across a vessel with 3,500 Nissan vehicles from Japan. Imagine you are looking to import cars from Japan to Australia and hear that news… Marine insurance is here for that reason exactly. To alleviate the unavoidable risk factor that comes with the shipping industry. 

In the particular topic of liability coverage, its protection to something you might not even be aware of. Did you know if (for example) your vehicle was the source of one of those fires mentioned above, you may be liable for the entirety of the damage caused? That’s right, not only would you have to worry about your vehicle being written off, but you could also be liable for hundreds of millions of dollars in the rest of the damage caused onboard. 

Liability coverage alone should be a very easy reason for opting for marine insurance coverage. And remember, it doesn’t matter if you import car from NZ to Australia or you import cars from Japan. The same rules and liabilities apply. It also applies to a variety of vehicles being shipped, from caravan imports to heavy machinery transport, not just cars.

Protection Against Theft Or Vandalism

As we previously broke down, your vehicle will go through many different hands from departure to destination. Whether you import car UK to Australia or are shipping car from NZ to Australia, you can be exposed to theft or vandalism. The distance of the journey doesn’t necessarily matter. 

Now while we would like to think nothing will go wrong, the world isn’t perfect and bad actors do exist. Your vehicle will be left unattended in various places along the journey, such as a pre-export facility. Although most premises are private with security measures in place, theft or vandalism does still occur. 

Take a look at this incident over the ditch in Auckland, New Zealand. A couple had left their car at a dealership waiting on some repairs. Next, they get a call about their car being stolen and taken on a high-speed joy ride, before being abandoned. You would certainly not expect to get that call if you are car shipping Australia to NZ, for example. But, you can certainly see where unexpected bad things do happen that have nothing to do with the service itself.

Opting for the marine insurance option is a great way to cover yourself and leave nothing to chance.

Peace of Mind

Whether you are moving from the UK and looking at car shipping UK to Australia or are a dealer wanting to import JDM cars, you want to ensure your vehicle arrives in one piece. Whether you are looking for a one-time movement or are a regular importer, it’s all the same. While we and our logistics partners take every measure to ensure that happens, accidents and uncontrollable events do occur.

That is why it is worth getting marine insurance and having that peace of mind necessary in international car shipping. It allows you to cover all the basics and relax knowing you are protected against any liability while in transit.

You also have the comfort of asset protection in mind. If your vehicle is able to be repaired, it will. If not, the value it has been insured for will be available as an option to you. Some of these vehicles can cost thousands if not millions of dollars. From classic cars or shipping machinery to Australia, protecting your asset in case of unexpected events is crucial. 

You are also protected from previously discussed financial liability if it is found that your vehicle has caused further damage. Marine insurance coverage will help avoid the stress of having to deal with such unexpected and freak situations. 

Affordability

Look, the cost to import car from Australia to NZ is about $2500 AUD. Meanwhile, the cost of shipping a car from UK to Australia is about $5000 AUD. Importing a car from Japan can cost upwards of $1500 AUD. Meaning, there is a significant cost already associated with international vehicle shipping. 

The cost of marine insurance is typically $500 AUD for a vehicle of up to $50,000 in value. If you’re one of the motorhome importers Australia, or have other vehicles valued higher than that, there are other standards. Vehicles valued over $50,000 AUD are usually changed a coverage fee of 1% of the vehicle value. Therefore, if you are car shipping Australia to New Zealand and your vehicle is valued at $100,000 AUD, your marine insurance would cost $1000. 

As per most standard insurance policies, there is also an excess payable for every claim you make. With marine insurance, that is normally $500 AUD and must be noted as a hidden car shipping cost in the event of a claim. 

Whether you decide for or against it, we will always recommend you get it. Look, you don’t have to get it with us. You can ask your existing insurance provider if they are able to cover you during international vehicle shipping Australia movements. Regardless, it is better to be safe than sorry.