Why Cargo Insurance Is Essential for Car Exports

25.09.2025

When shipping a car overseas, most clients focus on the cost of transportation, customs clearance, and delivery times. But one of the most important — and often overlooked — aspects of international shipping is cargo insurance. Whether you are exporting a family car, a luxury vehicle, or a fleet of SUVs and trucks, having proper insurance is not just a formality — it’s a safeguard against risks that can cost thousands of dollars.

 

At All Cargo Export, we always advise our clients to insure their shipments. Here’s why cargo insurance is essential for car exports in 2025.

 

Risks in International Car Shipping

 

The journey from the USA to Africa, the Middle East, or anywhere else involves multiple stages: pickup, loading, port handling, ocean transit, customs clearance, and delivery. At every step, risks exist.

 

Some of the most common risks include:

  • Damage during loading/unloading – even with professional strapping, accidents can occur.

  • Rough seas – storms or shifting containers can cause scratches, dents, or worse.

  • Port accidents – collisions, fires, or equipment failures in busy terminals.

  • Theft or vandalism – vehicles in transit or storage are potential targets.

  • Total loss of cargo – rare, but ships can sink, catch fire, or lose containers overboard.

In fact, according to the World Shipping Council, an average of 1,500–2,000 containers are lost at sea every year. Even one uninsured vehicle in such a container can mean complete financial loss.

 

Financial Protection

 

Without insurance, if something happens to your vehicle, you — the shipper or buyer — bear the full loss. With insurance, however, you are compensated for the vehicle’s value.

 

Example:

  • A 2022 Ford Explorer worth $32,000 shipped to Nigeria.

  • Ocean storm causes container damage, the car suffers major scratches and glass breakage.

  • Repair cost: $7,500.

  • With cargo insurance, the client is reimbursed, avoiding unexpected expenses.

 

For exporters handling multiple vehicles, insurance is even more critical. A container holding 4–6 SUVs could represent $150,000+ in value.

 

Growing Importance in 2025

 

Several factors make cargo insurance more important than ever:

  • Increased global trade: More vehicles are moving across oceans, increasing exposure to risks.

  • Climate change: Storms and unpredictable weather patterns are more frequent.

  • Port congestion: High traffic increases the risk of accidents.

  • Higher vehicle values: SUVs, EVs, and luxury cars are expensive to replace.

 

According to Allianz Global Corporate & Specialty (AGCS), cargo-related claims in shipping cost insurers over $6.2 billion annually, with vehicle damage among the top categories.

 

At All Cargo Export, we don’t see insurance as optional — we see it as essential protection for our clients.

We help with:

  • Choosing the right type of coverage (all-risk vs total loss).

  • Handling paperwork and claims in case of an incident.

  • Providing photo documentation of loading for extra transparency.

By combining professional handling, modern security systems at our warehouses, and cargo insurance, we ensure that every client can trust their shipment is safe both physically and financially.

 

Car exports involve opportunities — but also risks. Weather, port congestion, theft, and accidents can all happen despite the best precautions. Cargo insurance provides peace of mind, protecting clients from unexpected losses.

For individuals shipping one car or companies exporting hundreds, insurance is the smartest investment to secure your assets.

At All Cargo Export, we combine secure handling, professional strapping, and comprehensive insurance solutions to keep every shipment protected — from the USA to Africa, the Middle East, and beyond.