Yes, you need marine insurance when shipping a car from China. Carrier liability is capped at roughly 2 SDR per kilogram under the Hague-Visby rules — a few thousand dollars for a 1,600 kg car, far below its value. All-risks cover under Institute Cargo Clauses (A) costs about 0.15-0.6% of CIF plus 10%, roughly USD 40-120 for a USD 15,000 car.
Key Facts Table
| Clause | Cover | Fit for vehicles |
|---|---|---|
| Institute Cargo Clauses (A) | All-risks | Standard choice |
| Clauses (B)/(C) | Named perils only | (C) excludes handling damage and theft |
| War & strikes clauses | High-risk waters | Add for Red Sea routes |
RoRo vs container
RoRo is cheaper but exposes the car to handling scratches and interior theft. Container shipping seals and lashes the vehicle; personal items and spare parts can travel inside. High-value or new cars: container plus Clauses (A).
Who buys the policy
Under CIF the seller arranges insurance — check the cover level, some sellers buy the cheapest (C) cover. Under FOB or CFR the risk passes to you at the loading port, so buy the policy yourself before the vessel sails.
Filing a claim in 5 steps
- Note damage on the delivery receipt before signing. 2. Photograph the car in the terminal. 3. Notify insurer and carrier in writing (usually within 3 days). 4. Request a surveyor; do not repair first. 5. Submit certificate, B/L, invoice, survey report and repair quotation.
General average is the clause buyers forget: after a vessel casualty every cargo owner contributes proportionally, and cargo is released only against a bond — handled by the insurer if you are covered, paid in cash if not.
FAQ
How much is marine insurance for a car from China? Typically 0.15-0.6% of CIF value plus 10%. Expect USD 40-120 for a USD 15,000 vehicle.