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"Insurance" instead of Carnet? "Insurance" instead of Carnet?
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Trip Paperwork Covers all documentation, carnets, customs and country requirements, how to deal with insurance etc.
Photo by George Guille, It's going to be a long 300km... Bolivian Amazon

I haven't been everywhere...
but it's on my list!


Photo by George Guille
It's going to be a long 300km...
Bolivian Amazon



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  #1  
Old 4 Jun 2007
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"Insurance" instead of Carnet?
On the Horizons Unlimited Site they mention in the Carnet Section that there is another option in the form of an "insurance scheme". Id rather not post 150% of my motorcycle as a bond for my London to Cape trip. Can anyone tell me more about this "insurance" that is mentioned?

Grateful for any replies I might get...
Garrett
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  #2  
Old 4 Jun 2007
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To my understanding the "insurance scheme" could mean a monthly insurance which would cover the risk of wrecking your vehicle or when it is stolen. The beneficiary would be the government of the country you are visiting.

I'm not sure whether South Africa does accept this setup, but its embassy should know.

Basically the carnet can be obtained eg. from an automobile club either by depositing money (current value of the bike, but not less than 3,000 Euros in the case of S.A.) or by providing a bank guarantee. The latter is like an insurance scheme. You have to pay a service fee plus a monthly/annual rate somewhere around 2-3 %.

Hope this helps.
Hans
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  #3  
Old 4 Jun 2007
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The insurance is very expensive, and if you 'lose' your vehicle it doesn't get you out of paying, unless you go for an even higher premium!

If you can manage it it is better to put up the money yourself, it will save you money in the long run
Andy
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  #4  
Old 4 Jun 2007
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Carnet Insurance
Hi - In the UK you can cover the deposit by taking out an insurance policy. The only organisation that seems to arrange carnets in the UK now is the RAC (Royal Automobile Club). The insurance company they use will refund 50% of the premium when the Carnet is satisfactorily discharged at the end of the trip - at least they did 3 years ago when I completed my last trip which required a Carnet. This actually made the premium a lot cheaper , especially for my 12 year old Tenere. However, although the insurance covers the deposit for the purpose of obtaining the Carnet, if the Carnet is not properly discharged and a claim is made on it, the insurance company will require you to pay up for the duty paid!

Of course this is rather academic since you live in the USA but may be useful to UK residents.
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  #5  
Old 5 Jun 2007
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For a USA carnet you will go through the Canadian AA. They don't have an insurance program to cover the deposit. The only way to get around the deposit is to get a letter of credit from your bank which will be extremely difficult if not impossible to get. Again this is for the CAA which has different rules than those in Europe.
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  #6  
Old 13 Jun 2007
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ditto what greynomads said - the same type of system exists in australia.
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