Understanding Auto Transport Insurance
When you ship your vehicle, it’s only natural to ask, “What happens if something goes wrong?” That’s where auto transport insurance comes in. Every licensed car shipping company is legally required to carry insurance, and understanding what that policy covers can make all the difference in your peace of mind.
From scratches and dents to total loss coverage, knowing how transport insurance works—and what steps you should take to protect your vehicle—will help you feel confident during the entire process.
Is Insurance Included in the Price?
Yes. Reputable auto transport companies include basic cargo insurance in the cost of shipping. This insurance typically covers:
- Damage sustained during transit
- Theft
- Accidents involving the transport carrier
However, the details—such as the coverage limits, deductibles, and what qualifies as “damage”—can vary from one company to another. It’s essential to ask for a certificate of insurance (COI) or policy summary before booking, so you understand what’s protected and to what extent.
What Is Usually Covered
Most standard transport insurance policies cover:
- Exterior damage (scratches, dents, dings) caused by road debris or improper handling
- Damage from collisions or accidents while in the transporter’s care
- Vandalism or theft while on the carrier’s trailer
Coverage usually begins once your car is loaded onto the trailer and ends when it is unloaded at the delivery location.
In most cases, policies have coverage limits—commonly between $100,000 and $250,000 per vehicle. For rare or high-value cars, you may need to request additional protection or check if the company offers higher-limit policies.
What Is Not Covered
While transport insurance is comprehensive, there are several key exclusions:
- Personal items left in the car: Insurance only covers the vehicle itself—not your belongings inside. Leaving valuables, luggage, or aftermarket electronics can void your claim if damage occurs.
- Pre-existing damage: Carriers won’t cover scratches or dents that existed before pickup.
- Mechanical issues: If your car experiences engine failure or battery problems during or after transit, it’s not the carrier’s responsibility.
- Cosmetic damage from weather: Light exposure to rain, sun, or dust (especially in open transport) isn’t typically covered unless it results in paint or surface damage.
- Undocumented damage: If damage wasn’t noted during the Bill of Lading inspection, it may be difficult to file a successful claim later.
What You Can Do to Protect Your Vehicle
- Request a Copy of the Insurance Policy
Always ask for documentation that outlines the coverage details. Confirm the policy’s limits, deductibles, and claim process before booking. - Inspect Your Vehicle Thoroughly
Before pickup, clean your car and photograph all angles—interior and exterior. This provides proof of its condition before transport and will be essential if you need to file a claim. - Attend Pickup and Delivery Inspections
The carrier will perform a visual inspection at both pickup and drop-off. Make sure everything is documented in the Bill of Lading, and don’t sign it if there’s new damage that wasn’t previously noted. - Check Your Own Auto Insurance
Some personal auto policies provide secondary coverage for vehicle shipping. Contact your insurer to find out if they offer any supplemental protection. - Consider Additional Coverage
If you’re shipping a luxury, antique, or rare vehicle, you may want to purchase supplemental insurance. Some transport companies offer this directly, or you can use third-party insurers for added protection.
How to File a Claim
If your vehicle arrives with unexpected damage:
- Document everything with photos before the driver leaves.
- Make a note on the Bill of Lading and get a copy.
- Contact the transport company immediately and request their claims procedure.
- Submit your photos, inspection reports, and any other supporting documents.
Reputable companies are responsive and work to resolve issues quickly, especially when proper documentation is provided.
Auto transport insurance is there to protect you—but only if you understand how it works. Knowing what’s covered, what isn’t, and how to prepare your car before shipping can save you from frustration down the road.
Always choose a licensed, insured transporter, and take time to inspect, document, and communicate clearly at each step of the process. Pay special attention to easily damaged parts like windshields and windscreens, noting any existing chips or cracks before pickup. With the right precautions, you can ensure your car arrives safely—and if something goes wrong, you’ll be ready to handle it smoothly.
