Insuring Vehicles For Transport: The Basics

Transporting a vehicle is a delicate process that comes with certain risks, so it's important to know how to insure your car properly. Auto transport companies are required to carry insurance, but it's up to you to verify their coverage and ensure it's sufficient. You should also check with your own insurance company, as your policy may cover your vehicle during transport. In some cases, you may need to purchase additional insurance from the transporter or a third party.

Ask the car shipping company for proof of insurance

When shipping a car, it is important to ask the car shipping company for proof of insurance. This is a crucial step to ensure that your vehicle is protected in the event of any damage or issues during transport. Here are some detailed instructions and considerations to keep in mind:

Understanding the Importance of Proof of Insurance

Asking for proof of insurance from the car shipping company is essential because it provides you with the assurance that the company has the necessary coverage to protect your vehicle. Auto transport companies are legally required to carry valid insurance, and they should be more than willing to present it upon request. This proof of insurance will outline the company's coverage limits and dates, giving you confidence that they can cover any potential damages or losses during the shipping process.

Verifying Coverage Details

When reviewing the car shipping company's proof of insurance, pay close attention to the coverage details. Verify that their insurance covers the entire process, including pickup, transport, and delivery. Some transporters may only have coverage once the vehicle is loaded on the truck, so it is crucial to clarify this beforehand. Additionally, inquire about any exclusions or limitations during pickup, loading, transit, and unloading. This will help you understand the extent of their coverage and identify any potential gaps that may require additional protection.

Asking Relevant Questions

When reviewing the car shipping company's proof of insurance, take the opportunity to ask relevant questions. Find out if their policy covers any damage that occurs during the shipping process and to what extent. Determine if the entire vehicle is covered or if there are specific parts that are excluded from coverage. Ask about the deductible amount and whether you will be required to pay it in case of damage. Understanding these details will help you make an informed decision about the level of protection provided by the company.

Recognizing Red Flags

If a car shipping company is hesitant or reluctant to provide proof of insurance, consider it a red flag. A reputable and reliable company should be transparent and forthcoming with their insurance information. Any signs of evasiveness or unwillingness to share their insurance details could indicate that they may not have adequate coverage or may be trying to hide something. In such cases, it is advisable to consider alternative options to ensure your vehicle's protection.

Obtaining Written Proof

In addition to asking for proof of insurance, make sure to get everything in writing. Request a copy of their insurance certificate or policy document. This will allow you to review the details of their coverage thoroughly and identify any potential discrepancies. Having written proof also provides you with a reference point in case any issues arise during or after the shipping process. It is always better to have detailed documentation than to rely solely on verbal assurances.

By following these instructions and staying informed, you can ensure that the car shipping company you choose has adequate insurance coverage to protect your vehicle during transport. Remember, it is your right to ask for proof of insurance, and a reputable company should be more than willing to provide you with the necessary information and answers to your questions.

Get everything in writing

When it comes to insuring a vehicle for transport, it's crucial to get everything in writing. Here are some detailed instructions and considerations to keep in mind:

Before agreeing to any auto shipping service, it is imperative to get all special agreements, considerations, or guarantees in writing. This step is crucial for your protection in case something unexpected happens during the transport process. Auto transport companies may include a waiver in their contract, absolvING them of responsibility for any damage that occurs to your vehicle while in their possession. Therefore, getting everything in writing ensures that they honour their commitments and provides you with recourse if issues arise.

Understand the Auto Transport Company's Policy

Prior to agreeing to their terms, carefully review the auto transport company's policy. Understand the extent of their coverage, including any exclusions or limitations. Verify that their insurance covers the entire transportation process, from pickup to transport and delivery. Some transporters may only have coverage once your vehicle is loaded onto the truck. Additionally, clarify whether their policy covers the entire vehicle or just specific parts. This step ensures that you are fully aware of the transporter's responsibilities and helps you identify any potential gaps in coverage.

Verify Coverage Limits and Replacement Value

It is essential to confirm that the auto transport company's insurance coverage limits are sufficient to replace your vehicle if it is destroyed or significantly damaged during transport. This verification process ensures that you are adequately protected in the event of a total loss. Ask for their insurance policy details and check if their coverage limits match the value of your vehicle.

Request Inspection Reports

Both at the drop-off and pickup locations, be present for the detailed inspections conducted by the transport company representatives. These inspections document the condition of your vehicle, including any existing scratches, dents, or other damage. Request a copy of each inspection report, as they will serve as important references if you need to file a claim later. Take your own photographs and notes during these inspections to have a comprehensive record of your vehicle's condition.

Understand Your Own Auto Insurance Policy

In addition to the transporter's insurance, review your own auto insurance policy. Contact your insurance provider to clarify whether your coverage extends to transportation scenarios. Some policies may provide backup coverage if there are issues with the transporter's insurance. Understanding your own policy can give you added peace of mind and help you make informed decisions about purchasing additional transport insurance.

Check with your auto insurance company

When transporting a vehicle, it is important to check with your auto insurance company to understand the extent of your coverage. While your policy may provide protection during transit, it is not always the case. Informing your insurance company about your vehicle transportation plans is generally advisable.

Different insurers have different policies, so it is essential to inquire about their specific coverage for transport-related claims. Ask your insurer whether your same coverage applies while the vehicle is being shipped and whether you need to notify them of the car shipping company's details. It is also worth asking about any exclusions or limitations to their coverage, such as damage caused by "Acts of God" (natural disasters).

Additionally, if you are hiring someone to drive your vehicle to its destination, check with your insurer to understand what your policy covers in this situation. In some cases, your insurance or the driver's policy will apply depending on the circumstances. If the driver does not have their own auto insurance, you may want to request that they obtain a non-owner car insurance policy for minimum liability coverage.

Furthermore, if you are transporting your vehicle with a company, it is important to understand the different types of auto transport companies: brokers and carriers. Brokers act as middlemen, connecting you with carriers, who are companies that own their fleet of trucks and physically transport your vehicle. While brokers are not required to offer insurance, some provide supplemental coverage. Therefore, it is crucial to understand who you will be dealing with in the event of damage to your vehicle during transit.

Remove loose items from the vehicle's interior

When preparing a vehicle for transport, it is important to remove all loose items from the interior. This includes items such as phone holders, car chargers, GPS devices, portable DVD players, air fresheners, spare change, and pens. Any item that is not secured to the interior of the car should be removed. This is because the movement of the transport trailer can cause items to shift and move around, potentially causing damage to the inside of the vehicle or the items themselves. Removing loose items also helps to decrease the risk of theft or loss during transport.

In addition to removing loose items, it is also recommended to clean the interior of the vehicle. This will make it easier to identify any existing damage and ensure that the vehicle is in good condition for transport. It is also important to disable any alarm systems and remove toll tags.

By following these steps, you can help ensure that your vehicle arrives at its destination safely and securely, with no damage to the interior or its contents. It is also important to note that transport companies are not responsible for any personal items left in the vehicle, so it is always best to remove all valuables before transport.

Furthermore, taking pictures of the interior and exterior of the vehicle before transport is also recommended. This will help document the condition of the vehicle and provide evidence in case of any disputes regarding damage during transport. Overall, taking the time to properly prepare your vehicle for transport will give you peace of mind and ensure a smooth and stress-free process.

Pre-possession inspection

A pre-possession inspection is a crucial step in the process of transporting a vehicle. Here are some detailed instructions and tips for conducting a thorough pre-possession inspection:

• Exterior Check: Inspect the vehicle's body and paintwork for any scratches, dents, or signs of damage. Ensure that the paint is uniformly applied without any variations.
• Lights Inspection: Test the headlights, taillights, indicators, and brake lights. Ensure that both the high and low beams are functional.
• Glass Inspection: Check the windshield, windows, and mirrors for any cracks, chips, or imperfections that may hinder visibility during driving.
• Interior Inspection: Assess the condition of the seats, upholstery, dashboard, and trims. Verify that all interior features, such as air conditioning, the audio system, infotainment system, and controls, are in proper working order.
• Mechanical Inspection: Check the engine for leaks, unusual noises, or signs of damage. Verify the functionality of the brakes, steering, suspension, and exhaust system. Inspect the transmission, clutch, and gearbox.
• Tyre and Wheel Inspection: Ensure that the tyres are properly inflated and have sufficient tread depth. Check for any signs of damage on the tyres and wheels. Verify that the wheels are properly aligned.
• Documentation: Ensure that all necessary documents, such as the vehicle's registration papers, insurance, and warranty information, are in order. Verify that the owner's manual, user guides, and maintenance schedules are present.
• Fluids and Battery: Check the fluid levels, including engine oil, coolant, brake fluid, and windshield washer fluid. Look for any leaks or abnormal fluid discoloration that may indicate potential issues. Verify the battery status.
• Pre-existing Damage: Before the transport company takes possession of the vehicle, they should perform a thorough inspection to note any existing damage. It is recommended to be present during this inspection and take photographs of the vehicle's condition before handing it over.
• Bill of Lading: Upon delivery, the owner will need to fill out the Bill of Lading, which details the vehicle's condition upon arrival. Check the vehicle thoroughly, including the undercarriage, and start the engine to look for any signs of mechanical damage. If there is any damage, include it on the Bill of Lading and have the driver sign it.

Frequently asked questions