You hand over your keys, the truck pulls away, and a question hits you on the drive home. If something happens to the car now, who pays?
Usually the carrier's cargo insurance, not your own car policy. Auto transport insurance is the coverage that protects your car while a carrier has it. It has limits, exclusions and a claims process most people never read until they need it.
This guide covers what vehicle transport insurance pays for, where your personal policy stops, how to check a carrier's coverage, and what to do if your car arrives damaged.
Want prices from companies you can check first? Get a free quote, then run every carrier through the insurance checks below before you book.
What is auto transport insurance?
Auto transport insurance is the carrier's cargo policy. It covers your car against damage, theft or loss while it's loaded, hauled and unloaded.
It's separate from the carrier's liability insurance, and the two get mixed up all the time.
- Liability insurance pays for damage the truck causes to other people and their property on the road. Federal rules require for-hire property carriers to carry at least $750,000 of it (49 CFR 387.9).
- Cargo insurance pays for damage to the cars on the trailer, including yours. Federal rules don't require car haulers to carry it, so reputable carriers carry it by choice.
That's why the certificate matters more than the sales pitch. A liability limit of $750,000 or $1 million on a Certificate of Insurance looks reassuring. It protects other drivers. The cargo line is the one that protects your car.
Does your car insurance cover auto transport?
Usually not, or not fully.
Most personal policies are built around you driving the car. Once a carrier has it, damage the carrier causes is the carrier's responsibility, and your own policy may not step in.
There are exceptions. Comprehensive coverage may pay for some risks like theft, fire or hail no matter who has the car. Some insurers also sell an optional rider for shipping. It varies by insurer, so ask your agent this, word for word:
"Does my policy cover damage during vehicle shipping by a licensed carrier?"
Get the answer in writing. A phone "should be fine" won't help you at claim time.
|
Coverage |
Your car insurance |
Carrier cargo insurance |
|---|---|---|
|
Damage the carrier causes in transit |
Usually not |
Yes, up to the policy limit |
|
Hail, floods and other weather |
Sometimes, with comprehensive |
Often excluded or limited |
|
Personal items left in the car |
No |
No |
|
Aftermarket parts |
Depends on your policy |
Only if declared in writing |
|
Required by law |
In most states |
No (liability is required, cargo isn't) |
What carrier cargo insurance covers
Here's what a carrier's cargo policy usually pays for:
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Exterior damage from loading, unloading, or cars shifting on the trailer.
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Collision damage if the truck is in an accident.
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Fire, theft and vandalism, depending on the policy.
-
Weather damage, sometimes. This matters most on open trailers, where the car sits outside for the whole trip.
Most claims start at the ramp, not on the highway. Loading and unloading is where cars get scraped, and that's the part of the trip the driver controls.
If your car is valuable enough that hail or road debris worries you, an enclosed trailer lowers the risk in the first place. Our open vs enclosed car shipping guide shows what that costs.
What vehicle transport insurance doesn't cover
Even a good cargo policy has gaps. These are the ones that catch people off guard:
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Personal belongings. Anything left inside the car isn't covered.
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Undeclared aftermarket parts. Spoilers, custom wheels, roof racks and audio systems may not be covered unless you list them in writing before pickup.
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Mechanical or electrical failure the carrier didn't cause. A pre-existing oil leak that starts a fire is on you.
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Damage that wasn't on the Bill of Lading at pickup. If a scratch wasn't written down then, you can't prove it's new.
-
Acts of God like floods or hail, on many policies.
-
Normal road dirt and wear from the trip.
Read the exclusions page of the policy, not the summary. That's where these live.
Coverage limits, deductibles and your car's value
Three numbers decide what a claim actually pays.
The coverage limit is the most the policy pays on a claim. Some policies set a limit per car. Others share one limit across every car on the trailer, which can run thin if several cars are damaged at once. Ask which one you're getting.
Say the carrier's per-car limit is $100,000 and your classic is worth $150,000. The policy pays up to $100,000. The other $50,000 is yours to cover.
The deductible is what gets taken off a payout before the insurer pays. Ask what it is and who pays it before you sign.
Actual cash value is what most insurers pay. It's your car's market value at the time of the damage, after depreciation. For a classic, modified or rare car, that can fall well short of what you'd pay to replace it. An agreed-value policy fixes the payout in advance.
Some carriers also cap what they'll pay through released value terms in the contract. Our guide to released value coverage explains how that cap works.
Should you buy extra auto transport insurance?
If your car is worth more than the carrier's per-car limit, yes. The same goes for a classic, exotic or heavily modified car that actual cash value would underpay.
There are three ways to add coverage:
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A third-party shipping policy from an insurer that covers cars in transit, bought for the trip.
-
A rider from your own insurer. Some will extend your coverage for the shipment if you ask. Compare the price with a third-party policy.
-
Gap coverage, if you still owe money on the car. It covers the difference between a total-loss payout and your remaining loan or lease balance. Without it, you could be paying off a car you no longer have.
Shipping overseas means more handling and a longer trip, so extra coverage makes more sense there too.
One rule for all three. Buy the policy before pickup. Coverage you add after the damage won't pay for it.
How to check a carrier's insurance before pickup
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Ask for a current Certificate of Insurance (COI). Check the policy dates, then find the cargo line, not just liability. Note the per-car limit and the deductible.
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Check the carrier's USDOT and MC number on the FMCSA SAFER Company Snapshot. Confirm the operating authority is active and the company name matches the one on the COI.
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Ask which carrier will actually haul your car. If you booked through a broker, the broker's insurance isn't the carrier's. Get the COI from the company whose truck shows up.
-
Read the exclusions and deductible in writing before you sign anything.
If a company won't send a COI, or the name on it doesn't match the truck, that's your answer.
Before pickup and at delivery: protect your claim
Most claims are won or lost on paperwork you fill out in the driveway.
Before pickup
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Wash the car a day or two ahead, so existing damage is easy to spot.
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Take dated photos and video of every side, the roof, the interior and the undercarriage. Note the odometer reading.
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Take everything out of the car, including toll tags.
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Make sure every existing scratch and dent is written on the Bill of Lading before the driver leaves.
At delivery
-
Inspect the car in good light before the driver goes, using your pickup photos to compare.
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Write any new damage on the Bill of Lading in detail. "New 8-inch scratch, driver-side rear door" beats "door damage."
-
Have the driver sign next to your notes.
If you sign the Bill of Lading clean, you may lose the right to claim. Take the extra 10 minutes, even if the driver is in a hurry.
How to file an auto transport insurance claim
The claim goes to the carrier, not to your own insurer. Build the packet on day one:
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The Bill of Lading with the damage noted and the driver's signature
-
Your pickup and delivery photos
-
A written repair estimate from a body shop
-
The carrier's claim form, if it has one
-
A specific dollar amount
That last one matters. A written claim has to identify the shipment, describe the damage and state what you're asking for (49 CFR 370.3). Without an amount, it may not count as a claim yet.
Federal claim rules (49 CFR Part 370) give the carrier 30 days to acknowledge your written claim. It then has 120 days to pay, decline, or make a written settlement offer. If it needs longer, it has to update you in writing every 60 days after that.
Expect to pay the shipping fee in full while the claim runs, since payment and claims are handled separately. If you bought extra coverage, send that insurer a copy of the claim at the same time.
If a carrier stalls or denies a fair claim, file a complaint with FMCSA through its National Consumer Complaint Database. A BBB complaint adds public pressure, and small claims court is the last step. Our guide on how long car shipping damage claims take walks through the timeline.
Getting the right auto transport insurance for your shipment
Your own car insurance probably won't carry you through a shipment. The carrier's cargo insurance will, up to its limit, and only if your paperwork backs you up.
So check the certificate. Find the cargo line and the per-car limit. Empty the car, and get every mark on the Bill of Lading. If your car is worth more than the carrier's limit, buy extra auto transport insurance before pickup, not after.
Ready to ship? Get a free quote, then ask each company for its Certificate of Insurance before you book anything.
