Hi, am shipping my bike from the West Coast of the US to China. For the several weeks while my bike will be in the container, have been quoted a rate of 1.5% of stated value for insurance coverage.
This works out to be the same, if not more expensive, than my full coverage insurance while I am out on the road, which includes third-party liability coverage, etc. Given that the bike does not seem exposed to as much risk while sitting in a supposedly secure container, this price seems quite high to me.
Anyone have any experience with these rates? Is this kind of insurance necessary in the first place? If the quoted rate accurately reflects the degree of risk involved (and not just inflated profit for the insurer), I guess I should be worried enough to get insurance?
Hi just check what kind of incoterms you have on you see waybill and you find out coverage.
The thing is if you don't have any insurance to cover shipping you will be responsible of case of total loss if vessel sunk. That means that all cargo on board will cover costs of vessels salvage. In worst case you will loos you bike and also pay salvage cost.
Thanks for the response; I know that without insurance I may be liable for the loss or destruction of the bike, but really how often do these ships sink? I'm actually more worried about theft, especially from the Chinese port.
Also, I forgot to mention that a search on the HUBB on this topic came up with one thread where the guy was paying 4% of value for this kind of coverage, so my quote is a real "bargain". While the search turned up lots of threads on general insurance, I couldn't find anything else on shipping insurance.
4% and 1.5% are both a rip off, IMHO.
I ship motorcycles commercially from Australia to New Zealand, the UK and the USA and my broker charges me 0.25% per sea journey.
Because we do return shipments to all our destinations obviously it works out to be 0.5% of the value of the bike, but the insurance covers both sea container journeys - there and back.
Admitedly I've been running Get Routed for nearly 10 years and because we do a good job of packing containers (of bikes) our insurance costs have come down slightly, also due to never having made a claim.
thanks much for the info--the kind of rate that you mentioned is more like what I expected.
I am going with a group, and the organizer has quoted the 1.5% rate. Is it worth my while trying to get a lower rate with a different insurer? Seems like even if it is possible, obtaining a rate will require lots of information which I don't have.
Try an insurance broker in your city, then get quotes from other brokers if necessary.
You should be able to get down to 0.4% each way. I get a discount down to 0.25% because of my excellent history of no claims. Plus my broker knows exactly how I load the bikes into the containers and because of that I get a great rate. That plus the volume of my business which goes his way.
Get a quote for the whole group will help. Greater number of bikes means more money for the insurer.
When I get my insurance for the bikes I ship I send the broker all the details (VIN No, Rego No, Make, Model, Value) of the bikes plus each owners name.
That list is used on the manifest for the shipping company and it's the total value of the shipment which is used to determine the (0.25%) cost of the Marine Insurance.
1.5% and 2.5%
I also had some quotes for 1.5 and 2.5% respectively. The reason given was it's different poilcies and therefore different rates.
We will be shipping a 4x4 in a container from Sydney to South Korea. We will have personal goods in the car. The agent on this side said the insurance for personal goods is even more. Still to confirm the actual rate. The reason given was that it is more difficult to value personal goods (and second hand goods) and higher risk. The fact that it will be locked up in a car doesn't seem to play a role in the price.
I think I'll have to speak to a few brokers here in Sydney.
Anyone know good insurance brokers???
Try my broker - Bernie Ryan on 03 9813 3633.
Tell him I sent you.
I'll give him a ring.
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