Shipping a car over a long distance has become routine, but it still carries some risk. Accidents, theft, and damage in transit are rare and real. Auto transport insurance is what stands between you and the bill if one of them happens.
What auto transport insurance is
It is coverage that protects your vehicle while it travels from one place to another. It pays for losses from accidents, damage, or theft during shipping. A reputable transport company makes sure every shipment it handles is covered.
Carriers and brokers
You will deal with one of two kinds of company. Carriers own the trucks; your car rides on their trailer. Brokers arrange the shipment and find a carrier; they do not own trucks. Which one you are talking to changes what to ask about insurance.
Brokers: vetting the coverage
A good broker vets every carrier it works with, confirms the carrier's cargo insurance is adequate, and confirms the policy is active. Most carriers hold cargo coverage of $150,000 to $350,000 and liability of $1,000,000 or more. The broker does that research for you and can provide the carrier's insurance certificate if you need to file a claim.
Carriers: responsibilities and limits
Carriers are responsible for the cargo on their trailers, within limits. In an accident, the adjuster sets the actual cash value of your vehicle at the time of the incident, and that value and the repair cost define what the carrier owes. Carrier policies generally exclude "acts of God" such as tornadoes and hurricanes, which are evaluated case by case. Having your own policy in place helps in those situations.
Three layers of coverage
Your own auto insurance
Not required for shipping, but worth checking. Some personal policies cover the car in transit; many have limits or exclusions. Ask your insurer before you book.
Carrier insurance
Mandatory for every carrier and the primary layer of protection. It covers damage to your car during transit that the carrier is responsible for.
Broker gap coverage
Brokers do not sell insurance, but some offer gap protection that helps with damage the carrier's policy does not cover. It is a useful backstop for the grey areas.
Tips for secure transport
- Verify insurance before you sign. Make sure the broker has the carrier's proof of insurance.
- Check with your own insurer about coverage in transit.
- Be present at pickup. The driver documents the car's condition on the bill of lading. Take your own photos and video from every angle.
- Inspect at delivery. Any new damage gets recorded on the bill of lading before you sign. That document is what a claim is built on.
- Communicate. Stay in touch with the company throughout.
- Know the claims process for both the carrier and your own insurer.
- Consider extra coverage for a rare or high-value car.
- Pick a reputable company with a track record.
- Read reviews from past customers.
- Get written estimates from several brokers and compare coverage as well as price.
Conclusion
Auto transport insurance protects you from the financial fallout of something going wrong in transit. Understand the three layers, check the carrier's coverage, and follow the steps above, and the shipment will be secure as well as convenient.