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Jan 16, 2024

Your vehicle is a valuable asset, so you want to make sure it is protected during shipment. Although it is not common, accidents can and do happen from time to time. That’s why it’s important to make sure your vehicle is properly insured when you are shipping it from one place to another. The last thing you want to deal with is costly expenses due to lack of insurance.  Although the industry standard insurance provided by most auto shippers will cover your vehicle against damage and theft by the transport company, there may be some exclusions. Here are a few things you should know to ensure your car is protected from any potential issues. 

What Insurance Do Shipping Companies Provide?

Auto shipping companies are required by law to have insurance coverage for the cars they transport. Most companies have liability and cargo insurance, meaning any damage would be covered that occurred during transit. However, it should be noted that this insurance only covers the vehicle itself, and not anything inside the vehicle. This is why you should always remove personal belongings from your vehicle prior to shipment. Furthermore, you should always ask the shipping company for proof of insurance and always get any special agreements in writing. 

How Much Coverage is Provided?

Although auto shipping companies are required to have insurance coverage, the amount of this coverage varies depending on the company. This is something you need to inquire about when choosing a shipping company. In some cases, the total coverage amount for your vehicle is based on the lowest Kelly Blue Book value, so additional coverage may be needed. A few questions to ask the shipping company include: What type of damage is covered? Is there a deductible? What is the limit of your coverage? Is there an option to purchase additional insurance? You should also be aware of any limitations to the policy provided by the shipping company such as “acts of god” including earthquakes, floods, tornadoes, etc. 

Does My Own Auto Insurance Cover Shipment?

Depending on your policy, your own auto insurance company may cover your vehicle while it is in transport. Be sure to inquire with your insurance company about your coverage plan and whether or not you need to supply them with any form of notification from the auto shipping company. 

Auto shipping insurance is fairly standard in the industry and should be provided by any reputable auto transport company. Just be sure and find out all of the insurance information prior to shipment and make sure to get a copy of their coverage plan. In the unlikely event that your vehicle does sustain damage during transport, be sure and document it immediately upon pickup and file a claim as soon as possible.

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