When you entrust your vehicle to an auto transport company, you want the peace of mind that comes with knowing your investment is protected. Whether you’re relocating across the country, purchasing a car from another state, or shipping a classic vehicle, understanding auto transport insurance is crucial for ensuring your vehicle remains covered throughout its journey.
What is Auto Transport Insurance?
Auto transport insurance provides financial protection for your vehicle during the shipping process. There are typically two types of car shipping insurance that work together to protect your vehicle: primary and secondary coverage.
Primary insurance (cargo insurance) is provided directly by the carrier or transport company. This coverage is the first line of defense against damage during transport. It covers your vehicle while it’s loaded on the carrier’s truck and is the primary source of compensation if damage occurs during shipping. This insurance is mandatory for all licensed auto transport companies and covers vehicles from the time they’re loaded until the time they’re delivered.
Secondary insurance refers to your personal auto insurance policy. When your vehicle is being transported, your personal coverage typically becomes secondary to the carrier’s primary insurance. This means that if damage occurs during transport, the carrier’s insurance handles the claim first, and your personal insurance may only come into play if the carrier’s coverage is insufficient or if there are gaps in coverage.
Do You Need Insurance to Ship a Car?
While insurance isn’t mandatory, it is recommended. Here’s why it matters so much for vehicle owners:
- Peace of mind: Knowing that your vehicle is fully protected allows you to focus on other aspects of your move or purchase without constantly worrying about potential damage during transport.
- Financial protection: Without proper insurance, you could be responsible for thousands of dollars in repairs if damage occurs during shipping. Quality insurance coverage ensures you won’t face unexpected financial burdens.
- Legal requirements and liability: Federal law requires all auto transport companies to carry minimum insurance coverage, but understanding what’s covered and what isn’t helps you make informed decisions about additional protection.
Auto Transport Insurance Requirements
Taking the right steps before shipping ensures you’re fully protected throughout the process.
Research and Verify Carrier Insurance
You can request a certificate of insurance from your chosen transport company and verify that their coverage meets federal requirements. Feel free to ask your provider specific questions about:
- Coverage limits
- Deductibles
- Types of damage included
Don’t hesitate to contact the insurance company directly to confirm the policy is active and in good standing.
Review Your Personal Auto Insurance
Contact your insurance agent before shipping to understand how your policy interacts with the carrier’s coverage and whether you have any gaps that need addressing. Some personal policies may exclude coverage during commercial transport, so clarification is essential.
Consider Additional Insurance
If your vehicle has high value or sentimental importance, you may want extra protection. While standard carrier insurance covers most situations, additional coverage can provide higher limits or cover specific scenarios that standard policies might exclude.
Inspect Your Vehicle and Document its Condition
Take detailed photos of your car from multiple angles, noting any existing damage. You and the driver should sign off on the vehicle’s condition before it’s loaded onto the trailer. This documentation becomes crucial if you need to file a claim later. Check out our guide for preparing your car for transport.
Understand the Claims Process
Before your vehicle is transported, ask the carrier about their claims procedures, required documentation, response times, and how disputes are handled. Knowing the process upfront can save significant stress if issues arise.
What Insurance Does Auto Shipping Group Provide?
At Auto Shipping Group, we prioritize the protection of your vehicle throughout the entire transport process. All of our trucks carry a minimum $100,000 insurance policy, as required by law, specifically for damages to the vehicles they are transporting. Every carrier in our network must provide Auto Shipping Group with a certificate naming our company as additionally insured, ensuring an extra layer of protection and accountability.
When your vehicle is loaded on one of our trucks, it becomes fully insured through the truck’s comprehensive cargo insurance policy. This primary coverage takes effect from the moment your vehicle is secured on the carrier until it’s safely delivered to your destination. Your personal insurance becomes secondary to the primary insurance coverage.
For customers who want enhanced protection, alternative or additional insurance is available on a per-shipment basis. Contact our experienced agents to discuss these options and determine if additional coverage makes sense for your specific situation and vehicle value.
This multi-layered approach to insurance gives you comprehensive protection and complete peace of mind throughout your vehicle’s journey. Learn more about Auto Shipping Group and how car shipping works.