Jeffrey Wade
Auto haulers need commercial truck insurance to protect their business and meet legal requirements. This insurance typically combines multiple policies, including liability, physical damage, and cargo insurance. The cost of auto hauler insurance can be high, ranging from $800 to $1500 per month, or even more, depending on various factors such as the size and type of hauler, the nature of the business, and the number and type of vehicles being transported. While some companies may offer cheaper rates, it is important to ensure sufficient coverage in case of accidents or damage.
| Characteristics | Values |
|---|---|
| Type of insurance | Commercial auto insurance |
| Type of business | Auto transport businesses |
| Companies that use car haulers | Car manufacturers, dealerships, repossession companies, towing companies, auto repair shops |
| Insurance requirements | Liability insurance, Physical damage insurance, Cargo insurance, Collision damage protection, Comprehensive damage protection, Uninsured or Underinsured Motorist, Medical Payments, Trailer Insurance, Unattended Truck Coverage |
| Insurance cost | $800 to $1,500 per month |
| Insurance cost factors | Car carrying capacity, Types of vehicles being hauled, Fleet size, Car hauler condition, Years in business, Location |
What You'll Learn
Commercial auto insurance
- Damage to the vehicle(s)
- Injury to someone else
- Damage to someone else's property
Commercial auto policies typically offer higher coverage limits than personal policies as business vehicles require greater protection in the event of accidents. The policy limit for an insurance policy may vary based on the vehicle type.
Some common types of commercial auto insurance include:
- Liability Insurance: This covers bodily injury and property damage caused by the insured vehicle to other people and their property.
- Medical Payments: This covers medical expenses for the driver, employees, and passengers in the vehicle, regardless of who is at fault in the accident.
- Physical Damage Insurance: This covers damage to the insured vehicle itself, including comprehensive and collision coverage.
- Uninsured or Underinsured Motorist: This protects against losses caused by drivers without insurance or with insufficient insurance.
- Rental: This covers the cost of a temporary replacement vehicle if the insured vehicle is unusable due to an accident.
- Towing: This covers the cost of towing the damaged vehicle to a repair centre or the company's truck yard.
- Trailer: This covers damage to the trailer being hauled by the insured vehicle.
The cost of commercial auto insurance depends on various factors, including the vehicle's make, model, and year; the gross vehicle weight; driving records of all drivers; the vehicle's usage; coverage options; and the number of vehicles being insured.
When insuring a car hauler, businesses may require additional coverage options, such as garage and operations, cargo, and on-hook insurance. Car haulers are exposed to unique risks, such as accidents, theft, and damage to the vehicles being towed.
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Liability insurance
The importance of liability insurance for auto haulers stems from the unique risks associated with transporting vehicles. Accidents, theft, and damage to the cars in tow are all potential issues that can lead to significant financial liabilities. Without adequate liability coverage, a single incident could jeopardise your entire operation.
In addition to the financial protection it offers, liability insurance also provides peace of mind. Knowing that you are covered in the event of an accident or incident can help you focus on running your business effectively. It is a vital component of risk management for any auto hauler business.
When considering liability insurance, it is important to remember that the coverage only extends to the other party in an accident. Any damage to your car hauler or the vehicles you are transporting would typically be covered by physical damage insurance or cargo insurance, respectively.
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Comprehensive physical damage protection
Comprehensive insurance is a crucial component of physical damage protection. It safeguards auto haulers against financial losses resulting from incidents other than collisions with vehicles or objects. This means that if an auto hauler's vehicle sustains damage from a fire, natural disaster, or any other covered peril, the comprehensive insurance policy will provide the necessary financial protection.
The protection offered by comprehensive physical damage insurance extends beyond the vehicle itself. It also covers additional equipment that is crucial for auto haulers, such as tarps, chains, and binders. This ensures that auto haulers can quickly get back on the road after an accident or equipment loss, minimising downtime and maintaining business operations.
When choosing comprehensive physical damage protection, auto haulers should be aware of the deductibles involved. A deductible is the amount that the policyholder must pay out of pocket when filing a claim. By selecting a higher deductible, auto haulers can lower their insurance premiums. However, it is essential to choose a deductible that aligns with their financial capabilities, ensuring affordability in the event of a claim.
In addition to comprehensive coverage, auto haulers may also consider Collision insurance, which specifically covers damages resulting from collisions with other vehicles or objects. This type of insurance provides financial protection for repairs or replacement of the insured vehicle in the event of a collision.
Furthermore, auto haulers should be mindful of the limitations and exclusions within physical damage coverage. For instance, physical damage insurance typically does not cover cargo being transported or the personal belongings of drivers. Therefore, auto haulers may need to consider additional coverages, such as cargo insurance and workers' compensation insurance, to ensure comprehensive protection for their business, employees, and transported goods.
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Collision damage protection
In addition, collision damage protection can provide peace of mind and help keep your business running smoothly. When vehicles are involved, there is an inherent risk in business operations. Commercial auto insurance, including collision damage protection, can mitigate this risk for business owners.
The cost of car hauler insurance, including collision damage protection, can range from $800 to $1400 per month, depending on various factors such as the size and type of car hauler, the nature of your business, the number of vehicles hauled, and the distance travelled.
It is important to note that car hauler insurance requirements may vary depending on local laws and the size of your hauler. Small haulers typically require at least $100,000 in coverage, while large haulers may need $200,000 to $500,000 or more.
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Cargo insurance
Federal Requirements
The Federal Motor Carrier Safety Administration (FMCSA) requires all auto haulers to have a minimum liability limit of $1 million. However, the FMCSA has set a minimum coverage baseline of $750,000 for general operations. It is important to note that this baseline may not be sufficient for auto haulers, as the value of the vehicles they transport can be significantly higher.
State and Contractual Requirements
In addition to federal requirements, auto haulers must also consider the laws and regulations set by their state of residence. Some states may impose minimum requirements for cargo coverage. Furthermore, contracts with clients may also stipulate specific amounts of cargo coverage that are necessary to do business with them.
Determining Cargo Coverage Amount
The amount of cargo insurance needed depends on various factors, including the type of business, the nature of the vehicles being hauled (new, used, or salvage), the distance travelled, and the number of auto hauling trucks owned and operated. It is recommended to have at least $100,000 in cargo insurance, but the coverage amount can range from $150,000 to $500,000 depending on individual circumstances.
Exclusions and Additional Coverage
It is important to note that most cargo insurance policies do not cover cargo while it is being loaded and unloaded. Therefore, auto haulers should consider additional loading and unloading insurance, especially when dealing with high-value vehicles. Comprehensive coverage is often preferred over collision damage coverage, as it provides protection for a wider range of incidents.
Cost of Cargo Insurance
The cost of cargo insurance for auto haulers can vary depending on several factors, including the size and type of auto hauler, the number of vehicles hauled, the nature of the business, and the location. The insurance rate can range from $800 to $1,500 per month, with larger fleets being more expensive but offering lower per-vehicle rates.
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Frequently asked questions
Auto hauler insurance is a type of commercial truck insurance that covers vehicles used to transport multiple cars over long distances.
Auto hauler insurance typically includes liability insurance, physical damage insurance, and cargo insurance. Liability insurance covers bodily injury and property damage to other vehicles and property. Physical damage insurance covers the car hauler vehicle itself. Cargo insurance covers damages to the vehicles being transported.
Any commercial truck transporting vehicles will need auto hauler insurance. This includes auto transport companies, car manufacturers, dealerships, towing companies, and auto repair shops.
The cost of auto hauler insurance can range from $800 to $1,500 per month or more, depending on factors such as the size and type of car hauler, the number of vehicles transported, and the business location.
