Well, transit insurance means your goods are insured while they are being transported. This means it only covers your goods while they are in a vessel (like a truck, ship, and aircraft) for fire, flood, overturning, lightning, collisions and accidents. A lot of people think if another vehicle runs into the truck won’t they have insurance like 3rd party property. Yes but if the driver of the other vehicle in under the influence of drugs or alcohol, even if they have insurance the insurance company will wipe them as this is outside of their policy conditions.
Sometimes there is the case where the driver has no insurance, registration or no drivers licence so they have no cover. Transit insurance will not only cover for these types of situations it also covers you if there is no-one to blame.
I have a story that happened a few years ago of a removalist company that was driving a truck load of furniture to Melbourne. On the way the driver stopped at a rest area for break. That particular day it was quite windy. As the driver was in the bathroom a huge gum tree fell over onto the middle of the truck pan and crushed it. The removal company have comprehensive insurance to cover their truck so they were fine however the goods are not covered and you can’t take a tree to court. The customers in this story did not have transit insurance to cover their goods. The customers still had to pay the removalist as they had done nothing wrong plus they had to pay for another truck to come out and salvage what they could. And as they were salvaging the goods it started to rain, so whatever wasn’t damaged got wet.
This is an amazingly unlucky story but you never know what can happen. Transit insurance seems cheap when you consider what can happen