Relations between the United States and Canada may be a bit cold amidst the ongoing tariffs war, but trade continues between the 2 countries. As US Canada Auto Transport, we have been around since 1985. In that time, we have learnt how to navigate through the sometimes muddied waters. So, how do you proceed in the event that something happens to your car while in transit? In this post, we show you how to handle vehicle insurance claims after cross border shipping.
Reasons for claiming
Though every effort is taken to eliminate the possibility of damage to your car while it is in transit, life still happens. As such, there is always a possibility that something will happen along the way. The following are some of the reasons why you could end up lodging insurance claims on your vehicle;
1. Weather-Related Damage (Open Carriers)
- Hail and Storms: Open carriers expose your vehicle to the elements. Hail, heavy rain, and snow can cause dents, scratches, and water damage.
- Road Debris: Gravel, rocks, and other debris kicked up by the transport truck or other vehicles can chip paint and damage windshields.
- Salt and Corrosion: During winter months, road salt can cause corrosion, especially if your vehicle is not properly protected.
2. Road Hazards and Transport Mishaps
- Scratches and Dents: Minor scratches and dents can occur during loading, unloading, and transit, even with careful handling.
- Tire Damage: Although rare, tire damage can occur due to improper securing or road hazards.
- Fluid Leaks: Rough roads and vibrations can sometimes cause fluid leaks.
3. Border Crossing Issues
- Delays: Delays at the border can increase the time your vehicle is exposed to potential risks.
- Inspection Damage: Though unlikely, improper handling during customs inspections could cause minor damage.
4. Loading/Unloading Issues
- Interior Damage: If items are left in the vehicle, these items can cause damage to the interior during transit.
- Exterior Scratches: Tight spaces during loading and unloading can cause scratches.
Understanding Cross-Border Vehicle Insurance
Before shipping a vehicle across the U.S.-Canada border, it’s important to understand how insurance coverage works in both countries. We have previously covered the importance of getting the best insurance while having your car shipped. The insurance requirements and policies in Canada and the U.S. differ, and not all insurance providers cover vehicles while they are in transit.
Key Considerations
- Check Your Existing Policy: You may not actually need to get new insurance for the shipping process. Some U.S. and Canadian insurers offer coverage for vehicles in transit, but not all do. Contact your insurance provider to verify if your policy includes cross-border shipping coverage.
- Carrier’s Insurance: Professional auto transport companies typically provide cargo insurance to cover damages incurred during shipping. Depending on where you are, this requirement may be mandated by law. However, the coverage limits vary, and you should confirm the details before shipping. If you decide to use US Canada Auto Transport, we will provide you with insurance terms as part of the quotation. Click on the button below to get started.
- High-Value Vehicles: If you’re shipping a high-value or classic car, the carrier’s insurance may not be sufficient to cover the full value of your vehicle. In such cases, additional insurance is highly recommended.
- Peace of Mind: Even for less valuable vehicles, additional insurance can provide peace of mind in case of unexpected damage.
- Temporary Importation Rules: Vehicles temporarily imported into Canada or the U.S. must comply with local regulations, and insurance requirements may differ. You will need to check these rules before proceeding. We have already mentioned ongoing tensions between the 2 countries. That has brought about some changes in the way Canadians in the US are treated.
Steps to Take Before Shipping
To ensure a smooth insurance claim process in case of damages, follow these preparatory steps:
1. Document the Vehicle’s Condition
Before shipping, take detailed photos and videos of the vehicle’s interior and exterior from multiple angles. Capture any existing dents, scratches, or damages as proof of the vehicle’s condition before transit. Insurance companies can be a bit …reluctant when it comes to settling claims. That’s the reason why you need to take pictures. They allow you to prove the condition that your car was in before it was shipped.
2. Obtain a Bill of Lading
The bill of lading is a crucial document that acts as a contract between you and the transport company. It includes details about the vehicle, the shipping company’s terms, and any pre-existing damages. Ensure you get a copy and review it carefully. Make sure that no damage is listed there that’s not on your vehicle. Also make sure that the condition of the car is properly captured.
3. Review Insurance Policies
- Request a copy of the transport company’s insurance policy. That will give you an idea of what you can expect in terms of coverage in the event that your car suffers damage while in transit.
- Confirm whether your own insurance provides additional coverage. We noted that some companies provide insurance while a car is being shipped. This coverage tends to be limited, which is the reason why people tend to take the step outlined below.
- Consider purchasing supplemental insurance if the carrier’s coverage is insufficient. A lot of people do this as additional protection. That’s particularly the case if you are shipping a vintage or expensive car.
4. Understand Customs and Border Regulations
Different laws govern vehicle imports and exports in Canada and the U.S. Ensure you have all required documentation, including the vehicle’s title, bill of sale, and any import/export paperwork required by customs authorities.
What to Do If Your Vehicle Sustains Damage During Shipping
Now we come to the part where you need to know how to handle vehicle insurance claims after cross border shipping. Despite taking precautions, damages can still occur during transit. As noted above, life tends to happen in spite of our best efforts. In the event that you car has been damaged while in transit, here’s how to handle an insurance claim efficiently:
1. Inspect the Vehicle Immediately Upon Arrival
Once your vehicle is delivered, inspect it thoroughly while the driver is still present. This is where the photos that we advised you to take before shipping come in handy. Compare your vehicle’s condition against the pre-shipping documentation and photos.
2. Note Any Damages on the Bill of Lading
If you notice any new damages, document them immediately on the bill of lading before signing it. This is crucial for proving that the damage occurred during transit.
3. Take Photographic Evidence
Capture clear photos and videos of any damages from multiple angles. Include timestamps if possible. These photos will help you prove that you are not trying to make a fraudulent claim.
4. Notify the Shipping Company and Your Insurance Provider
- Report the damage to the transport company immediately and request a copy of their claims procedure.
- If you have your own insurance coverage for shipping, contact your provider and initiate a claim.
5. File a Formal Insurance Claim
Most shipping companies have a claims process that requires you to submit supporting documents. Typically, you will need to provide:
- The bill of lading (noting damages)
- Photographic evidence
- A repair estimate from an authorized mechanic
- Your insurance policy details
Navigating Cross-Border Insurance Disputes
In cases where the transport company denies liability or provides inadequate compensation, consider these steps:
1. Check the Terms of Your Agreement
Carefully review the terms of the shipping contract to see what is covered and whether the company is responsible for the damages. In fact, this is something that you probably should have done beforehand.
2. Negotiate with the Transport Company
If the company disputes your claim, try negotiating a settlement. Providing strong evidence increases your chances of receiving fair compensation.
3. Contact Your Insurance Provider
If you purchased additional insurance, your insurer may cover the damages and then seek reimbursement from the transport company.
4. Seek Legal Action if Necessary
If you cannot resolve the dispute through negotiation, you may need to take legal action. This can be done through small claims court or by hiring an attorney specializing in transportation law.
Tips for Avoiding Insurance Claim Issues in the Future
We will close this article by giving you tips on how to avoid insurance claims when it comes to future cross border shipping of your vehicles;
- Choose a Reputable Shipping Company
- At US Canada Auto Transport, we pride ourselves in being of the most reliable vehicle shipping companies that you will be able to find anywhere out there.
- Read customer reviews. You can check out the US Canada Auto Transport reviews page to learn more about what our customers are saying about us.
- Verify the company’s credentials and insurance coverage.
- Check if the company is registered with relevant transportation authorities.
- Buy Additional Insurance: If the transport company’s insurance policy has limitations, consider getting supplemental coverage for extra protection.
- Be Thorough with Documentation: Keep all paperwork, including shipping contracts, bills of lading, and correspondence with the shipping company and insurance providers.
- Know the Legal Differences Between U.S. and Canadian Insurance Laws: Each country has its own regulations regarding vehicle insurance and claims. Understanding these differences can help you navigate cross-border claims more effectively.
Handling a vehicle insurance claim after cross-border shipping between the U.S. and Canada requires careful preparation and knowledge of both countries’ insurance and transport laws. By taking proactive steps—such as documenting the vehicle’s condition, understanding insurance policies, and promptly filing claims—you increase your chances of a successful outcome in the event that you need to claim. Choosing a reputable shipping company and considering additional insurance coverage can further protect your investment and provide peace of mind when shipping a vehicle across borders.