types of trailers and trucks used for car shipping: open carrier

Car Shipping Insurance – Complete Guide 2023

What does car shipping insurance cover?

Car shipping insurance covers damages to your vehicle that may occur during transport. This includes damages to the exterior of your car.

Car shipping insurance DOES NOT cover damages to any items left in the vehicle during transport. In addition, damages made to the interior of your vehicle by personal items are also NOT covered.

In this article we will answer the following questions and concerns about car shipping insurance you may have:
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    Do I need car insurance to ship a vehicle?

    No, you are not required to have car insurance to ship a vehicle locally or cross-country. Your car must be covered by the car shipping insurance of the carrier company.

    What kind of car shipping insurance is protecting my vehicle?

    All legally operating auto transporters are required to have liability insurance and cargo insurance. However, the coverage provided only protects the cars. Anything inside is not covered by the insurance. Therefore, our recommendation is to always clean your car and remove all personal belongings.

    Choose your car shipping broker wisely as they’re responsible for making sure the carrier transporting your vehicle is fully insured with enough cargo coverage.

    How much is the car shipping coverage?

    According to the Department of Transportation, each car carrier is required to have liability insurance and cargo insurance.  Potential damages to your vehicle are covered by cargo insurance.

    The amount of cargo insurance varies depending on the capacity of the trailer. The total amount must cover all vehicles loaded on the trailer.

    Open Car Carrier

    • 2 – 3 car hauler – 100K – 250K
    • 4 – 6 car hauler – 200K – 250K
    • 6 – 9 car hauler – 250K+

    Enclosed Car Carrier

    • 2 – 3 car hauler – 100K – 150K
    • 4 – 6 car hauler – 250K- 500K
    • 6 – 8 car hauler – 500K+

    How much does car shipping insurance cost?

    Car shipping insurance must be included in your car shipping quote. It is typically a small percentage of the overall transport cost.

    Reputable auto transport companies don’t ask for more money; they make sure your vehicle is safely transported for the quoted price.

    Car shipping insurance for luxury vehicles, sports cars, and classics.

    If you are looking to ship a luxury vehicle, sports car, or classic car, you will need a solid auto transport broker. A reputable car shipping company will provide a reasonable and competitive quote, and ensure the vehicle is transported on time, damage-free, and without any hidden fees.

    Due to the competitive nature of the auto transport industry, brokerage companies are often lowering their rates to earn business failing to later assign a carrier with strong insurance coverage.

    Below is a snapshot of why cargo insurance coverage is important when shipping luxury vehicles, sports cars, or vintage cars.

    The Insurance Coverage Is Important

    If an enclosed car hauler is loaded with:

    2020 Rolls Royce Cullinan - starting price: $330 000

    2021 Bentley Continental GT - starting price: $202 500

    2021 Mercedes-Benz G-Class - starting price: $131 750

    2021 Rolls Royce Phantom EWB - starting price: $535 000

    2022 Bentley Continental GT - starting price: $302 400

    The total amount of this load is ~ $1 501 650

    A car hauler company with less than $2 Million dollars Insurance Coverage would not be able to cover any potential damages. 

    That's why our shipping experts are always checking the carrier's insurance before assigning them a luxury vehicle for transportation!

    To Get Started Shipping

    If you would prefer to speak to one of our experienced Transport Specialists, feel free to give us a call at (888) -278- 9855 (Toll Free)

    Tips for safe auto transport.

    Request proof of insurance.

    А reputable auto transport company will be more than happy to answer any questions you may have about their car shipping coverage. Brokers must always have a copy of the insurance policy of the carrier company they assign to transport your vehicle. Not being willing to provide it is a red flag.

    Remove all personal items from your car.

    Generally, auto transport insurance provided by the carrier will not cover any damage to your vehicle’s interior. Therefore, remove all personal and loose items from your car before shipping.

    Perform an inspection.

    When the driver arrives to load your vehicle, the condition of your car must be documented and existing damage noted. Therefore, it is in your best interest to be present and inspect your car with the driver.

    The same inspections process is repeated on delivery. If there is damage, it must be noted on the Bill of Lading.

    Most reputable car shipping carrier companies are paperless. They use electronic devices to fill out the Bill of Lading and attach pictures of the vehicle during pickup and delivery.

    Filing a claim

    If something does happen to your car during transport, be sure to file a claim immediately. The sooner you file a claim, the sooner you can get your car repaired.

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