Insurance: Transporting Vehicles

If you're transporting a vehicle, you may not need to take out a specific insurance policy for it. This is because, in most cases, auto transport companies are legally required to have liability insurance. However, it's important to note that this requirement only applies to companies directly involved in transporting your car, not brokers. Therefore, it's always a good idea to check the insurance status of the carrier assigned to your shipment and request proof of insurance from the transport company.

While auto transport companies are typically insured, their policies may not cover all types of damage, and there may be limitations and deductibles. It's essential to carefully review the terms and conditions of their insurance coverage. In some cases, you may want to consider obtaining additional insurance coverage, especially if you're transporting a high-value vehicle or if the standard coverage seems insufficient.

Additionally, personal items left inside the vehicle during transport are generally not covered by the carrier's insurance. It's recommended to remove all loose items from the vehicle to reduce the risk of damage and theft, which are typically not covered.

Auto transport insurance requirements

Carrier Insurance:

Auto transport companies or carriers are required by law to have liability insurance. This covers damage to your vehicle during transportation, including loading and unloading. The minimum liability insurance for carriers is $1 million in public liability. However, it's important to verify their insurance coverage and understand any exclusions or limitations.

Customer Insurance:

You are not legally required to have your own car insurance policy while your vehicle is being transported. However, it's recommended to maintain your insurance coverage in case of any issues with the transporter's insurance or to cover any risks excluded by their policy. Comprehensive car insurance may cover damage during transportation due to fire, theft, or accidents, depending on your insurer.

Broker Insurance:

Brokers are companies that connect you with carriers but do not physically transport your vehicle. They are not required to have insurance, but some offer supplemental coverage to attract customers.

Additional Coverage:

Depending on the value of your vehicle and your risk tolerance, you may want to purchase additional insurance or supplemental coverage. This can provide extra protection and peace of mind during transportation.

Inspection and Documentation:

It is crucial to inspect your vehicle thoroughly before and after transportation. Document any existing damage and compare it with the condition upon delivery. Take photographs and request a copy of the inspection report from the transporter. This documentation will be essential if you need to file an insurance claim for any damage during transportation.

Understanding the Insurance Policy:

Review the transporter's insurance policy carefully and ask questions about coverage, exclusions, deductibles, and claim procedures. Understand the limitations of their policy and consider whether additional insurance is necessary.

Choosing a Reputable Company:

Select a reputable auto transport company with valid insurance and a good track record. Check reviews, verify their licensing and insurance, and ensure they follow industry regulations. A reliable company will prioritize the safety and security of your vehicle.

Auto transport insurance coverage

Types of Auto Transport Insurance

• Customer Insurance: You, as the customer, typically do not need personal insurance to ship your vehicle. Your personal auto insurance policy may offer transport coverage, but it's essential to verify this with your insurance agent.
• Carrier Insurance: The carrier or auto transport company is required by law to have insurance that covers damage to your vehicle during transport. This includes loading, unloading, and transit. However, it's crucial to review their policy for any exclusions or limitations.
• Broker Insurance: A broker connects you with a carrier but does not ship your car. Brokers are not required to provide insurance but may offer supplemental coverage to attract customers.

Important Considerations

• Get Proof of Insurance: Always request proof of insurance from the carrier and verify their coverage limits. Ensure their policy covers pickup, transport, and delivery, as some transporters' insurance only applies when the vehicle is on the truck.
• Understand Coverage Terms: Review the carrier's insurance policy thoroughly. Find out what types of damage are covered, if there are any deductibles, and if there are any exclusions.
• Inspect Your Vehicle: Before shipping, inspect your vehicle for any existing damage and document its condition with photographs. Repeat this process at drop-off and pickup, agreeing on the vehicle's condition with the transporter's representative.
• File a Claim: If your vehicle is damaged, destroyed, or stolen during transport, file a claim with the transporter's insurer. Having comprehensive and collision coverage on your auto policy can also provide backup protection.
• Understand State Requirements: Auto transport insurance coverage requirements can vary by state, so it's important to ask for the carrier's insurance policy details and verify their compliance with state regulations.
• Protect Personal Items: Auto transport insurance typically does not cover personal items inside the vehicle. Remove all loose items and valuables before shipping to reduce the risk of damage or theft.

Auto transport insurance FAQ

You don't need your own insurance to ship a car. However, it is wise to check that the auto transport company has adequate insurance to cover any damage to your car during the moving process.

There are three types of transport insurance: customer insurance, carrier insurance, and broker insurance. Customer insurance is your own personal insurance, which usually isn't needed to ship a vehicle. Carrier insurance is the insurance that the carrier must have to cover damage to your car. Broker insurance is supplemental coverage offered by brokers, which is not a requirement.

Auto transport insurance typically covers damage that occurs when loading, unloading, and transporting your car. It is important to check the specific terms of the insurance policy, as some may only cover certain parts of the car or have other exclusions.

Ask the auto transport company for proof of insurance and verify their coverage levels and dates. Check that their coverage limits are high enough to replace your vehicle if it is destroyed or damaged. You can also check the Federal Motor Carrier Safety Administration website to verify the company's USDOT and MC numbers.

If your car is damaged during transport, contact the auto transport company and their insurance provider to file a claim. Document any damage with photographs and note it on the Bill of Lading, which is a condition report that details the vehicle's condition.

Auto transport insurance claims

When it comes to auto transport insurance claims, there are a few key things to keep in mind. Firstly, it's important to understand the different types of auto transport companies: brokers and carriers. Brokers act as middlemen, connecting customers with carriers, who are companies that own their fleet of trucks and physically transport vehicles. Carriers are responsible for the cargo on their trailers and are required to have insurance to cover any damage to vehicles during transport. This insurance typically covers damage during loading, unloading, and while the vehicle is in transit.

When shipping a car, it is not legally required to have car shipping insurance. However, it is recommended to have insurance or additional protection to safeguard against potential issues. Auto transporters are legally mandated to have liability insurance, but this only applies to carriers, not brokers. Therefore, when choosing a carrier, it is important to ask for written proof of their insurance coverage and understand the terms and conditions of their policy.

In the event of damage to your vehicle during transport, you would typically file a claim with the carrier's insurer. The process may vary depending on the carrier, so it is essential to understand their claims procedure before booking. Additionally, some carriers may have exclusions in their policies, so verifying their coverage limits and ensuring they can replace or repair your vehicle if needed is crucial.

It is worth noting that carrier insurance usually does not cover "Acts of God", such as natural disasters, and may not cover damage caused by certain rare events like terrorism or civil unrest. In such cases, having your own auto insurance policy in place can provide additional protection.

Furthermore, auto transport insurance typically does not cover personal items inside the vehicle. Therefore, it is recommended to remove any personal belongings before shipping.

To summarise, while auto transport insurance claims can vary depending on the carrier and the situation, understanding the different types of auto transport companies, verifying insurance coverage, and being aware of any exclusions or limitations will help ensure a smooth process in the event of a claim.

Auto transport insurance companies

When it comes to auto transport insurance companies, there are a few key things to keep in mind. Firstly, it's important to understand the difference between auto transport brokers and carriers. Brokers are companies that connect you with a carrier but do not ship your car themselves, while carriers are companies that own their fleet of trucks and physically transport your vehicle.

Both brokers and carriers play an important role in the auto transport process, but it's essential to know which type of company you're dealing with when discussing insurance coverage. Auto transport companies, whether brokers or carriers, are required by law to carry liability insurance. This basic liability coverage is provided free of charge and covers any damage that occurs during the loading, transportation, and unloading of your vehicle.

However, it's important to note that carrier insurance does not cover "Acts of God", such as natural disasters like hurricanes or tornadoes. In such rare cases, you would need your own auto insurance policy in place to cover any damage. Additionally, auto transport insurance typically does not cover property damage or personal items inside the car. Therefore, it is recommended to remove all loose items and ensure your vehicle is free of personal belongings before shipping.

When choosing an auto transport company, it's crucial to verify their insurance status and coverage limits. Ask for written proof of coverage and inquire about what types of damage are covered, the deductible amount, and the limit of their coverage. You can also purchase additional protection plans from some companies, such as the uShip Protection Plan, for added peace of mind.

Furthermore, don't forget to examine your vehicle upon delivery and before signing the bill of lading. Once you certify the condition of your car, it's challenging to claim coverage for any missed damage. If there is damage during transport, contact the carrier and the shipping insurance company immediately to initiate the damage claim process.

By understanding the different types of auto transport companies, verifying their insurance coverage, and taking precautionary measures, you can ensure your vehicle is adequately protected during the shipping process.

Frequently asked questions