When shipping a car across the United States, one question often arises: Is auto transport insurance necessary? While most reputable car shipping companies provide basic coverage, it might not fully protect your vehicle in case of damage.
In this guide, we’ll explain how auto transport insurance works, what it covers, and whether you need extra protection.
🛡️ 1. What Is Auto Transport Insurance?
Auto transport insurance is cargo insurance provided by car shipping companies to cover potential damage during transit. The Federal Motor Carrier Safety Administration (FMCSA) requires all licensed carriers to carry basic insurance.
Key Features:
✅ Covers damage caused by carrier negligence.
✅ Applies during loading, transit, and unloading.
✅ Coverage limits vary by carrier and transport type.
💡 Tip: Insurance covers the vehicle only, not personal items left inside.
🚗 2. Is Auto Transport Insurance Required?
Yes, federal law requires all car carriers to have active insurance while transporting vehicles. However, the coverage varies based on the company and transport type.
Minimum Insurance Requirements:
- Open Transport: $50,000 to $100,000 per vehicle.
- Enclosed Transport: $100,000 to $500,000 per vehicle.
💡 Tip: Brokers don’t provide insurance directly but work with insured carriers.
📜 3. What Does Auto Transport Insurance Cover?
Auto transport insurance typically covers:
✅ Exterior Damage: Scratches, dents, and dings caused during transit.
✅ Loading and Unloading Damage: If the car is mishandled.
✅ Total Loss: In rare cases of accidents or theft.
What’s Not Covered:
❌ Personal Belongings: Items inside the car are not insured.
❌ Mechanical Failures: Pre-existing issues aren’t covered.
❌ Acts of God: Damage from storms, floods, or earthquakes.
❌ Wear and Tear: Minor scuffs from normal transport conditions.
💡 Tip: Remove personal items and loose accessories before shipping.
💰 4. Do You Need Additional Insurance?
Basic coverage might not fully protect high-value vehicles or classic cars. Consider supplemental insurance if:
- Your car’s value exceeds the carrier’s coverage.
- You’re shipping a luxury, classic, or exotic car.
- You want protection against weather-related damage.
How to Get Extra Coverage:
- Through the Carrier: Some companies offer additional plans.
- Third-Party Providers: Insurance companies like AIG and Chubb provide transport-specific policies.
- Personal Auto Insurance: Check if your existing policy covers car shipping.
💡 Tip: Ask the carrier if they offer a “gap coverage” plan for extra protection.
📸 5. How to Protect Your Car During Shipping
Proper preparation can streamline the insurance process if damage occurs.
Before Shipping:
✅ Inspect Your Car: Wash it and note existing damage.
✅ Take Photos: Capture multiple angles and close-ups.
✅ Verify Insurance: Request a Certificate of Insurance (COI).
Upon Delivery:
✅ Inspect the car immediately.
✅ Take photos of any new damage.
✅ Note damage on the Bill of Lading before signing.
💡 Tip: If you sign without noting damage, you waive your right to file a claim.
📄 6. How to File an Insurance Claim
If your car arrives with damage, follow these steps:
- Document the Damage: Take clear photos immediately.
- Note It on the Bill of Lading: Don’t sign until it’s documented.
- Contact the Carrier: Request claim forms and insurance details.
- Submit Proof: Include photos, the Bill of Lading, and repair estimates.
💡 Tip: Most carriers process claims within 10 to 30 days.
🕰️ 7. How Much Does Auto Transport Insurance Cost?
Basic insurance is usually included in the shipping price. If you opt for additional coverage:
| Coverage Type | Cost Estimate (One-Way Shipment) | Coverage Limit |
|---|---|---|
| Basic (Carrier) | Included in shipping cost | $50,000 to $100,000 |
| Additional (Carrier) | $100 to $300 | Up to $250,000 |
| Third-Party | $150 to $500 | Up to $500,000 |
💡 Tip: For high-value cars, the extra cost of enclosed transport with enhanced insurance is worth the peace of mind.
🔑 8. Tips for Choosing the Right Coverage
- Know Your Car’s Value: Ensure coverage meets or exceeds your car’s market value.
- Request Proof: Always ask for a Certificate of Insurance (COI).
- Understand the Deductible: Check if the policy has out-of-pocket costs.
- Read the Fine Print: Confirm what’s excluded from coverage.
- Choose Enclosed Transport: Offers higher coverage for luxury or classic cars.
💡 Tip: Choose companies with a price-lock guarantee to avoid surprise fees.
🌟 9. Is Auto Transport Insurance Worth It?
For most standard vehicles, the included carrier insurance is sufficient. However, if you’re shipping a luxury, classic, or high-value car, extra coverage provides peace of mind.
Get Extra Insurance If:
✅ Your car is worth over $50,000.
✅ You’re choosing enclosed transport.
✅ You’re shipping long-distance or internationally.
💡 Tip: If you’re unsure, ask the carrier for a coverage breakdown.
🚀 Conclusion: Do You Really Need Auto Transport Insurance?
Yes, auto transport insurance is essential for protecting your vehicle during shipping. While basic coverage is included, you might need additional insurance for high-value cars or peace of mind.
To recap:
✅ Verify the carrier’s insurance policy before booking.
✅ Inspect and photograph your car before shipping.
✅ Upgrade coverage if your car’s value exceeds the basic limit.
✅ Note damage on the Bill of Lading upon delivery.
With the right insurance coverage, you can ship your car worry-free.
