Leaving the Emirates for good? Out of all your valued possessions, we bet your car is high up on that list and it is most definitely coming with you to the next destination! At ServiceMarket, we receive thousands of queries from our clients about services in the UAE and today, we have compiled a short guide on everything you need to know about transport insurance for your car when shipping abroad. Remember if you need a shipping company or transport insurance, you can request for up to five quotes on ServiceMarket from verified car shipping companies.
Why should I buy transport insurance?
That’s a good question and it all boils down to the value of your car and how much you could potentially lose if anything happens when shipping. Most of our customers ship cars with a value that exceeds USD 5000 and it definitely makes good sense to ensure that you do not lose this kind of money by simply avoiding to put up a premium. The risks involved in the sea shipment include the ship sinking, piracy, theft, handling damages, robbery and fire. We say better safe than sorry.
What does transport insurance cover?
If your car is currently insured in Dubai or other emirates, then that means it’s safe up to a port of shipping or as per your regular liability insurance terms. Transportation insurance will cover port handling, container stuffing, overseas shipping, offloading at the recipient port, and the transportation to the designated point of delivery. So if any kind of accident occurs while your car is in any of these locations, you’re covered.
What should I know about overseas transport insurance?
It is important to make sure that your the international shipping company you’ve hired in Dubai uses the same mode of transportation to the new destination that you have bought insurance for. There’s two types of shipping: Container shipping or Roll On/Roll Off (RORO) referring to ferrying which requires driving on and off the ship/ferry, which is much more risky. If a mix of modes is needed then you must ensure that you are covered for modes of shipping because the insurance company can refuse any claims if you’ve only covered one mode of transport.
Are there other damage costs that I might incur after insurance?
For lesser premiums, some insurance companies require you to cover small damages such as scratches and dents up to USD 2500. In insurance terms, this is referred to as a retention fee meaning any other costs of repairs above this fee are covered by the insurer. For example, if the repair of a dent costs USD 4000, then you would get refunded USD 1500. You can, however, opt to not commit to a retention fee but you have to buy a more expensive transport insurance premium which can be almost 3 times more expensive than if you had paid the retention fee.
How much will transport insurance cost?
The insurance premiums depend on the value of your vehicle and the coverage aspects. We have compiled a representative pricelist below which is an average of what insurance companies in Dubai charge for full coverage plus the USD 2500 retention fee.
- Car value is under USD 5,000, then the premium is about USD 220.
- Car value is between USD 5,000 and USD 15,000, then the premium is about USD 340.
- Car value is between USD 15,000 and USD 30,000, then the premium is about USD 420.
- Car value is between USD 30,000 and USD 60,000, then the premium is about USD 550.
- Car value is between USD 60,000 and USD 100,000, then the premium is about USD 850.
- Car value is over USD 100,000, then the premium will need to be negotiated.
Any other tips about transport insurance?
Tip 1: Make sure that you are present when the insurance company in Dubai is inspecting your car before shipping and sign off any damages that they have identified. This will safeguard your interests should a claim be necessary later on.
Tip 2: Air transport might be cheaper than sea for a car with a value of USD 100,000 and above because the premiums get higher with value. Always compare before making a decision.
Tip 3: It’s important to note that all the information provided here only covers the transportation of the car. If any household goods are being shipped in the car, the transport insurance will not cover them. You’ll need to request additional add-ons to your insurance package to cover them.
Tip 4: Request for up to three shipping quotes from ServiceMarket and our customer care team will be happy to help you in making the decision. Apart from the price, compare other customer reviews on our website to ensure that you choose the best supplier.
The information provided in this article was shared by the CEO of ICB Shipping, Volker Risse, who has helped us write numerous helpful articles on car shipping in the UAE and in Europe. He has also started two new ventures, which aim to help UAE residents buy caravans that are perfect for desert trips as well as to buy property in Germany. More information can be found here: www.deserthome.de.
