Whether you’re relocating, buying a car from another region, or importing a vehicle from overseas, it’s not always possible to drive your new pride and joy home yourself. That’s where a car transit company comes in handy.
When a professional driver takes the wheel, or your vehicle is securely loaded onto a trailer, handing it over to experts offers more than just safe delivery. For real peace of mind, vehicle in transit insurance is what helps you rest easy at night.
While most vehicles arrive without incident, accidents can happen. Vehicle in transit insurance keeps you protected from unexpected weather events, collisions, theft, or handling damage while the vehicle is out of your hands.
This guide explains what car transport insurance covers in New Zealand, what protection you already have, where it falls short, and whether taking out specific transit cover is worth it.
Vehicle in transit insurance is a specialist type of insurance that offers protection of your vehicle during the transportation process.
This is different from car insurance, which provides coverage for things like fire, theft, and damage to your own vehicle and others during an accident.
Importantly, vehicle in transit insurance protects your car while it’s being transported by a third-party service – by truck, ferry, rail, or ship (we’ll get to why that last one is important in a moment).
While you should always read the specific vehicle in transit insurance policy in detail, typically this type of insurance covers you for:
Physical damage during loading, unloading, or transit
Theft of the vehicle or its parts
Loss due to accidents, fire, or extreme events
Certain maritime risks for when vehicles cross water
This type of cover only applies while your vehicle is in the transporter. It won’t protect you from any damage to your vehicle before and after delivery (but your regular car insurance should).
Vehicle in transit insurance isn’t a catch-all for anything that happens when your car is on the road or trailer. Here’s what’s not included:
Naturally, you can’t claim any damage caused before or after your car is transported.
This includes any damage that happens on the way to dropping your vehicle off and any damage that happens when you get your car back. So if you back into a post on the way out of the transport yard, unfortunately, that’s on you.
Any reputable transporter will take thorough photos of your vehicle before driving it and do a condition report before and after transportation.
Read our full checklist on everything else you need to do to prepare your car for transportation.
If your car won’t start for any reason (outside of an accident or an insured event such as a fire) during transportation, vehicle in transit insurance won’t cover you for repairs.
Here’s what is usually excluded:
Engine or gearbox failure
Battery issues
Electrical faults
Warning lights or mechanical breakdowns
It’s common for modified vehicles to be excluded from vehicle in transport insurance. Any vehicle that has modifications that fall outside of factory specifications may have limited or no coverage. This can include:
Performance or engine modifications
Lowered suspension
Aftermarket body kits
Non-standard wheels
Double-check with your transport service or insurance to clarify which modifications are and aren't covered.
If your vehicle does not run or is damaged, it likely won’t be covered by vehicle in transport insurance. If they’re covered, it’s often on a case-by-case basis and will only include total loss (not partial damage).
Transporters usually don't allow items to be loaded in the vehicle during transit; however, on door-to-door deliveries with single-vehicle transport, it could be possible. However, it's important to note that any items left inside your vehicle are usually not covered unless specified (and paid for as an additional insurance product).
Most transport companies will offer or include transit insurance, usually in one of these ways:
Optional add-on insurance
Bundled cover in premium or door-to-door services
Case-by-case cover for certain vehicles or routes
When offered, this insurance typically:
Covers the vehicle while in their care and control
Applies only if eligibility conditions are met
May exclude modified, damaged, or non-running vehicles
If the transit insurance is not clearly stated, it’s safest to assume it’s not included.
If you’re like most people, you may be thinking: Won’t my transit company’s insurance automatically cover my car?
Unfortunately, the answer is no, at least not fully. Here’s where some people get caught out. Transport services are often protected by the Contract and Commercial Law Act 2017 (and formerly the Carriage of Goods Act), which provides only minimum cover for you, limited to NZ$2,000.
If your carrier does not offer transit insurance, you’ll be covered under the Contract and Commercial Law Act (or through your own car insurance).
Not always. Third-party insurance won’t cover your car in transit, and some comprehensive policies exclude third-party transport or apply strict conditions, so it’s essential to check your policy wording carefully.
Look for clear wording that confirms cover for third-party vehicle transport, loading and unloading damage, ferry crossings if relevant, and both partial damage and total loss during transit.
Transit insurance may be unnecessary if your existing car insurance explicitly covers third-party transport, if your vehicle has a low market value, or if the transport provider includes full transit cover in their service.
Transit insurance is strongly recommended for valuable or newly purchased vehicles, long-distance moves, ferry crossings, buying sight-unseen, or when you couldn’t easily afford repair or replacement costs.
If you’re looking for a reliable vehicle transport carrier, Wise Move makes the process simple. Through Wise Move, you can book a trusted vehicle transport provider, comparing quotes and reviews to find the one that suits you.
Whether you need a professional driver to get your vehicle from A to B or prefer to transport your car securely on a trailer, you’ll find experienced carriers to suit your needs and give you the peace of mind you deserve.
Wise Move is New Zealand’s leading moving service, helping thousands of customers with home moves, furniture removals, car and motorcycle transport, and more. Since 2017, we’ve been delivering reliable, affordable, and well-reviewed moving services in just a few simple steps. Our focus has always been on making moving as simple and effortless as possible for our customers.
