It is important to know that normal automobile insurance to drive a car in Japan do not cover the vehicle during the voyage when the ship is transporting from Japan to overseas countries. Transportation insurance is highly recommended when shipping your car.
Marine insurance or cargo insurance covers the loss or damage of cargo (Automobile) between the points of origin (Loading port) and final destination (Discharge port).
Marine insurance provides insurance on the freight or commodity (Automobile) hauled by vessel. It covers cargo lost or damaged due to causes such as fire, collision, or sinking of ship.
There are two kinds of insurance policies:
- General risk insurance: This insurance cover fire, lost of cargo, and sinking of vessel during the voyage. The premium cost is 0.6% of automobile’s total value.
- Premium risk insurance: This insurance cover fire, lost of cargo (except original accessories), sinking of vessel, and damage of cargo during the voyage. The premium cost is 1.2% of automobile’s total value.
Who will set value of car?
Owner of car (you) will decide the value of your vehicle. However, price value of car extreemly more than market value is unaccepted.
Cargo insurance cost explanation:
According to basic marine insurance terms, the cargo insurance is calculated at 110% of the total cost of vehicle, and any covered losses will be paid at 110% of the cost of car.
For example, the value of your car is US$ 10,000 and the shipping cost from Japan to your country is US$ 2,000. The general cargo insurance charges will be as below: