All licensed vehicle dealers in Canada are required to carry a garagekeepers insurance policy (Garage Policies) to protect their vehicle inventory. But not all garage policies will protect you when exporting vehicles to the US. It is important to understand the limitations of your current garage policy to determine if you are protected.

Common Limitations to Canadian Garage Policies for Exporters

Before exporting, check your garage policy to ensure that :

• The destinations you are shipping vehicles to are covered.
• The number of vehicles on your lot are covered
• The inclusions and exclusions in the policy coverage.
• Co-insurance penalties for being under-insured based on your actual inventory value.
• The number of vehicles are on your lot can fluctuate with no additional costs
• There are not any limitation to move vehicles to the US
• The type of vehicles you export are actually covered
• You aren’t paying more than $100 per vehicle

Garage insurance is an essential part of the vehicle export industry. This type of insurance covers businesses engaged in vehicle sales, repairs, and services. It is designed to protect these businesses against financial losses resulting from damages, theft, or accidents involving vehicles on their premises. However, it's important to understand that garage insurance policies have limitations regarding vehicle export. 

What is a Garage Insurance Policy?

Garage insurance is a specialized insurance policy tailored to meet the unique needs of businesses operating in the automotive industry. It provides coverage for various risks associated with operating a garage, including property damage, bodily injury, and third-party liabilities. Garage insurance policies typically offer comprehensive coverage for the garage premises, vehicles owned by the business, and those under the care, custody, and control of the garage. 

​​Risks Covered Under Garage Insurance

Garage insurance policies typically cover a wide range of risks associated with vehicle export:

• Physical damages to exported vehicles during transit
• Theft or vandalism of vehicles while in storage facilities or during transportation
• Liability for bodily injury or property damage caused by exported vehicles
• Legal expenses arising from lawsuits related to vehicle export

These coverages provide a level of financial protection for vehicle exporters, allowing them to conduct their business with confidence. However, it's important to note that garage insurance policies also have limitations on vehicle export, which we will explore in the following section.

Limitations on Vehicle Export Coverage

While garage insurance is essential for vehicle exporters, it's important to understand its limitations. One limitation is that garage insurance may not cover vehicles that are over a certain age or have specific modifications. Insurance providers often have guidelines regarding the types of vehicles they are willing to cover, and exporters must ensure that their vehicles meet these requirements.

Another limitation is that garage insurance may not cover vehicles being exported between countries Insurance providers assess the risks associated with different destinations and may not cover your vehicles if they cross an international border based on their risk appetite. Exporters should carefully review their insurance policies to ensure that the countries they export to are covered.

Additionally, garage insurance may have limitations on the value of vehicles that can be covered. Insurance providers may set a maximum coverage limit, and exporters with high-value vehicles may need to seek additional coverage or consider alternative insurance options.

Understanding these limitations is crucial for vehicle exporters to make informed decisions about their insurance coverage. By working closely with insurance providers and understanding the specific terms and conditions of their policies, exporters can ensure that they have adequate protection for their vehicles and liabilities.

Why you may need Signal Export Insurance

Signal Export Insurance offers comprehensive coverage from the point of purchase in Canada to the point of sale in the U.S. The plan covers collision, theft, fire, and more, ensuring financial protection for exporters. It is flexible, scaling with your business needs, and features no upfront fees with quick and easy processing. Additionally, the rates are competitive, making it a cost-effective option for exporters looking to safeguard their investments.

​​Vehicle exporters should consider getting Signal Export Insurance for the following reasons:

• Scalable and Flexible: The insurance plan adapts to the size and needs of your business.
• Comprehensive Coverage: Protects vehicles from the point of purchase in Canada to the point of sale in the U.S.
• Cost-Effective: Pricing is vehicle-specific with low deductibles, often covering most vehicles up to $40k USD for just $100.
• No Long-Term Commitment: No long-term contracts, upfront premium payments, or complex paperwork required.
• Reliable Underwriting: The plan is underwritten by Markel, a Fortune 500 company (NYSE: MKL).

This insurance provides peace of mind and financial security for exporters.