If your car is totaled during shipping, the carrier's cargo insurance should be the first place you look for a payout. That insurance is always primary. Whether you actually get paid depends on what you document at delivery, so those first few minutes matter more than anything that happens later.
Total loss is rare. But it helps to know the steps before your car is on the truck.
What “Totaled” Means for a Shipped Car
A car is totaled when the cost to repair it exceeds its value. An insurance company makes that call, not the driver and not the shipping company. Each insurer and state has its own rules for where that line falls.
Who Pays When a Car Is Totaled in Transit
Every legitimate carrier must carry liability and cargo insurance, and that policy covers damage caused by the carrier's negligence—a crash on the road or a loading mistake both count. Our guide to cargo insurance explains how that coverage works.
One detail catches people out. Cargo limits can apply to all vehicles on the trailer, which matters if your car is worth a lot. Ask for the limit before you book. Our post on whether you need insurance to ship a car lists the other questions worth asking.
Check your own auto policy too. Some personal policies pause or limit coverage while a car is in professional transport.
What to Do When You See Major Damage at Delivery
Do these in order, and do not let the driver leave first:
- Inspect the car before you sign anything, and note every new damage on the final inspection report (the bill of lading). Signing without noting damage can release the carrier from liability.
- Take clear, timestamped photos and video of the damage with the driver present.
- Make sure both you and the driver sign the final report.
- Follow the steps in your agreement: pay the balance stated on the carrier contract, then contact the carrier's main office and its insurance company.
- Report the damage to us within 24 hours of delivery.
- Call your own insurer to ask how your policy applies.
What Is Not Covered
Carrier insurance generally doesn't cover personal items left in the car, damage that was already there at pickup, or mechanical problems the carrier didn't cause. Pickup photos and a signed inspection report are how you prove what was already there.
How Our Damage Free Guarantee Fits In
The carrier's insurance pays first. Our Damage Free Guarantee is backup coverage, and it has a limit. In rare cases where a carrier refuses to pay, or there are delays or disputes, our Damage Free Guarantee kicks in:
- Need to use your own insurance? We'll reimburse your deductible, up to $500.
- Repair cost $500 or less? We'll cover it directly—no need to involve your insurance at all.
The Damage Free Guarantee applies to transport-related, visible damage—like scratches, dents, or broken mirrors that were not present at pickup. It does not apply to mechanical issues not caused by the carrier, pre-existing damage, or damage from personal items left in the vehicle.
Because of that $500 limit, the guarantee won't cover a totaled car. The full claim requirements are in our terms and conditions.
How to Lower the Risk Before You Ship
- Ask for proof of the carrier's insurance and its coverage limit.
- Photograph the car at pickup and keep your copy of the inspection report.
- Remove your belongings from the car.
- For a valuable or rare car, consider enclosed car transport, which shields the car from road debris and weather.
Ship with Confidence
We check that every carrier in our network carries current insurance before we approve it. Questions about coverage for your car? Contact our team or get a free car shipping quote when you are ready.
