Short answer: Chinese export rules do not require cargo insurance for a used car leaving China — but you should treat insurance as yes for any car worth more than you can afford to write off. The reason is simple: if the car is lost or damaged at sea and nobody insured it, the carrier’s convention-limited liability will cover only a small fraction of the loss. And if the seller “includes insurance”, check which cover — the cheapest CIF-level policy often protects the seller’s Incoterm obligation, not your car’s full value.

Who is supposed to insure what

The Incoterms rule in your contract decides. Under FOB, risk passes to you at the loading port — you arrange marine cargo cover from there. Under CIF/CIP, the seller arranges insurance, but the classic CIF obligation is minimum cover, historically the narrowest clause tier. In the used-car corridor, quotes are often loosely labeled, so confirm in writing which Incoterm the contract uses and which insurance clause is actually being bought. The Incoterms framework is published by the International Chamber of Commerce: ICC Incoterms rules (official ICC page, checked 2026-09-05).

What carrier liability actually pays

Sea cargo liability is limited by international conventions to a formula per package or per kilogram (the commonly cited Hague-Visby level is 666.67 SDR per package or 2 SDR per kilogram, whichever is higher — B-grade industry convention figures). For a US$20,000 car, that arithmetic typically yields a recovery of a few thousand dollars at most, before arguments about package definition, and claims take months. This gap between what a car is worth and what a carrier owes is the entire case for cargo insurance.

Institute Cargo Clauses A, B and C — the one-minute version

Marine cargo policies worldwide are built on the standard Institute Cargo Clauses wordings:

  • ICC (A) — all risks subject to exclusions: covers loss or damage however caused unless specifically excluded (inherent vice, delay, willful misconduct, war per separate clauses, ordinary leakage/wear). This is the appropriate basis for a car.
  • ICC (B) and ICC (C) — named perils only: fire, explosion, vessel stranding/capsizing, collision, jettison for C, plus earthquake/volcano/ lighting, washing overboard, and similar events for B. Theft, handling damage and many port losses fall outside — a car can be dented, stripped or flooded in transit and the claim fails.

The clause texts are distributed through insurers and brokers rather than a single public download, so ask your insurer to state in writing which clause applies, on what insured value (the market habit is invoice + freight + around 10%), what deductible, and whether EV battery damage is covered or capped — some policies exclude or sub-limit it. Whether ICC wordings fit your contract is a question for a marine insurance professional.

Practical setup that works for buyers

  • On FOB deals: buy your own ICC (A) policy for invoice + freight + ~10%, effective from the loading port.
  • On CIF deals: keep the seller’s policy for their obligation, and consider topping up to ICC (A) in your own name — a normal broker transaction.
  • Confirm the policy names you (or your company) as insured or loss payee — a policy in the seller’s name pays the seller.
  • Photograph the car at gate-in; timestamped condition evidence decides claims.

When you need a professional

A marine insurance broker for the policy, and — for EV shipments — one who has handled battery-vehicle cover. See also Can EVs ship by RoRo from China? and RoRo vs container.

Sources and scope

Incoterms framework: ICC (iccwbo.org, official, checked 2026-09-05); clause structure and liability-limit context: Lloyd’s market and industry references (lloyds.com, B-grade, checked 2026-09-05). Nothing here is insurance advice; policy wordings control, and your broker/insurer confirms the cover actually purchased.