Auto Transport Insurance Coverage

Is your vehicle insured when you ship it?
Auto transport carriers are required to maintain applicable insurance coverage, but coverage limits and exclusions vary by carrier. Learn what auto transport insurance typically covers, what it does not cover, how to verify a carrier's insurance, and what to do if your vehicle is damaged during transport.

Insurance Coverage Index

1. Explaining Auto Transport Insurance Policies
2. How Car Shipping Insurance Coverage Works
3. What Car Shipping Insurance Does Not Cover
4. Why Personal Items are Not Covered
5. if Vehicle is Damaged: What to do
   
6. FAQ's: Insurance Coverage

Need Immediate Assistance? 

If you have questions about insurance coverage or if you're vehicle was damaged during transport and you need immediate assistance, please contact our office direct so we can help: 

• Toll Free: (866) 761-5133
• Phone: (754) 333-3598
• Email: [email protected]

 

Explaining Auto Transport Insurance Policies

Car shipping insurance is an important consideration when choosing an auto transport company. The carrier transporting your vehicle may have insurance coverage that applies to eligible damage or loss during transportation, but coverage varies by policy. Before pickup, customers should ask about the carrier's applicable insurance coverage, limits, deductibles, and exclusions.

Does Auto Transport Insurance Cover My Vehicle?

When shipping a vehicle, it's important to understand what insurance coverage applies to your transportation. Auto transport carriers must meet applicable federal financial responsibility requirements, but specific insurance requirements and coverage can vary depending on the carrier, operating authority, and type of transportation service.

If damage occurs while your vehicle is being transported, the carrier's applicable insurance coverage may help cover eligible losses, subject to the policy's limits, deductibles, exclusions, and claims procedures. Coverage does not necessarily apply to every type of damage or loss.

Before your vehicle is picked up, you can ask about the carrier's insurance coverage and request applicable documentation. It's also important to document your vehicle's condition carefully on the Bill of Lading at pickup and delivery.

What should I check before my vehicle is transported?

Before pickup, ask about the carrier's applicable insurance coverage and review any available documentation. Pay particular attention to coverage limits, deductibles, exclusions, and the procedure for reporting damage or filing a claim. [1]

 

How Car Shipping Insurance Coverage Works

It is important to note that auto shipping insurance coverage is a requirement mandated by the Federal Motor Carrier Safety Administration (FMCSA). Compliance with FMCSA regulations means that these insurance policies meet the necessary federal standards for protecting transported vehicles and third parties. [2][3]

Always ask the driver for proof of insurance.

What Does Car Shipping Insurance Cover?

When you ship a vehicle, carrier cargo insurance is designed to protect your vehicle against covered damage that may occur while it is being transported. Coverage can vary by carrier and policy, so it is important to understand what is covered before your vehicle is picked up. 

In general, auto transport insurance may cover physical damage to your vehicle caused by covered incidents during transportation, such as damage resulting from an accident, collision, or other covered loss while the vehicle is in the carrier’s care.

Before shipping, the carrier should provide information about its insurance coverage. At Viceroy Auto Transport, we can help you understand the carrier's coverage and what to expect throughout the shipping process.

Keep in mind: Carrier cargo insurance typically does not cover personal belongings left inside the vehicle, mechanical problems that are unrelated to transport damage, or pre-existing damage. Coverage, exclusions, and deductibles can vary by carrier and policy.

For additional peace of mind, ask about the carrier's insurance coverage before your vehicle is loaded. [4]

 

What Does Auto Transport Insurance Not Cover?

Auto transport insurance is designed to protect your vehicle against certain types of damage during transportation, but it does not cover every possible loss or problem. Coverage and exclusions vary by carrier and insurance policy, so it is important to understand the specific terms before your vehicle is shipped.

Common exclusions may include:

• Personal belongings:
  Items left inside the vehicle are generally not covered by the carrier's cargo insurance.
• Pre-existing damage:
  Damage that was already present before transportation is typically not covered.
• Mechanical problems:
  Mechanical or electrical failures that are unrelated to transport damage are generally excluded.
• Normal wear and tear:
  Minor wear that occurs through ordinary use is not typically considered transport damage.
• Items or modifications not properly disclosed:
  Special equipment, modifications, or aftermarket accessories may have specific coverage requirements.
• Damage caused by unsecured personal items:
  Loose belongings or objects inside the vehicle can potentially cause damage that may not be covered. 

Before pickup, the vehicle's condition should be carefully documented during the inspection process. This helps establish its condition before transportation and makes it easier to identify any new damage upon delivery. 

Because every carrier's insurance policy can have different limits, exclusions, and conditions, Viceroy Auto Transport recommends confirming the carrier's coverage before your vehicle is picked up. Understanding what is and is not covered can help you ship your vehicle with greater confidence and avoid unexpected surprises.

It's important to review the specific coverage details of your auto transport insurance policy, including any exclusions or limitations, before handing over your vehicle for transportation. Not all insurance policies are the same, and some may have specific exclusions for certain types of damages or conditions.

How the Customer Can Help Record Vehicle's Condition

It's crucial to document the condition of your vehicle before it is transported. Conduct a detailed inspection, take photographs, and note any damages on a condition report. This documentation will be required if you need to file a claim for damages after transport. Be sure to mention any existing damage to the transport company and make sure they note it before taking possession of your vehicle.

This generally applies to Open Transport, Enclosed Hauling and Flatbed Transport services.

Open Car Transport

Enclosed Car Hauling

Flatbed Transport

 

Personal Items are Not Covered by Insurance Policy

Personal belongings inside a vehicle are generally not covered by the carrier's cargo insurance. Remove valuables and personal property before pickup unless you have confirmed otherwise with the carrier.

If you have Personal Items in the Vehicle

Some important points to consider regarding personal property during auto transport:

• Remove Valuables:
  Before handing over your vehicle to the auto transport company, it's essential to remove all valuable items, important documents, and personal belongings from the car. This includes items like electronic devices, jewelry, important documents, and any other valuable possessions.
  
• Separate Shipping:
  If you need to transport valuable or essential items along with your vehicle, consider using a separate shipping method, such as shipping them separately via a reputable shipping service. This way, you can purchase insurance specifically for those items.
• Ask Driver:
  Some drivers are willing to negotiate and may request an added fee to be responsible for your personal items. This must be communicated between the customer and carrier direct as the driver will be assuming responsibility over the items once an agreement is made. Depending on items, carrier may request anywhere from $50 to $200 for the added weight and responsibility.

Auto transport insurance typically does not cover personal belongings inside the vehicle. To ensure the safety of your personal property during the auto transport process, it's best to remove all valuables and consider separate shipping or alternative insurance options for those items. Always communicate with the auto transport company about any specific concerns you have regarding your personal property before finalizing the transportation.

Read More → How to Prepare: Removing Personal Items

   

What to do if Vehicle is Damaged During Transport

Discovering damage to your vehicle after auto transport can be frustrating, but acting quickly and following the right steps is key to resolving the issue. If your vehicle sustains damage during transport, ensuring a smooth claims process and protecting your interests should be top priority.

How to Get Started: Beginning the Claims Process

Here are a few steps to make sure you are compensated for damages during the auto transport process:

1. Inspect and Document the Damage:
    Thoroughly inspect your vehicle upon delivery for any new damage. Take clear photos or videos and compare the condition to the pre-transport documentation noted on the Bill of Lading (BOL).
2. Notify the Transport Company:
   Contact the transport company immediately to report the damage. Provide a detailed description, along with photos, videos, and the completed BOL, to support your claim.
3. File a Claim with Supporting Documents:
   Submit a formal claim promptly, including the BOL, photos, repair estimates, and the shipping contract. Adhering to the company’s time-frame is crucial for a successful resolution.

By following these 3 basic steps, you can ensure that your claim is handled efficiently and that any damage is addressed properly. While the chances of damage during transport are low, being prepared can save time, reduce stress, and help you receive the compensation you're entitled to. Always remember to keep all documentation safe and act quickly if any issues arise. If you have questions or need further assistance, don’t hesitate to reach out to the transport company or consult with a professional for guidance.

Read More → How to File an Auto Transport Damage Claim

 

Frequently Asked Questions: Auto Transport Insurance Coverage

Here are a few Frequently Asked Questions with Answers on Auto Transport Insurance Coverage.

What is auto transport insurance coverage?

Auto transport insurance coverage is a policy carried by transport carriers that protects vehicles being shipped against damages during transit. It ensures your vehicle is covered for unforeseen events like accidents or external damages.

Is auto transport insurance mandatory?

Yes, all auto transport carriers are required by law to have insurance coverage for the vehicles they transport. This ensures your car is protected while in the carrier's possession.

What does auto transport insurance typically cover?

Insurance generally covers damages caused by external factors, such as accidents, weather-related incidents, or debris. However, it does not usually cover personal items left in the vehicle or pre-existing damages.

How can I verify a carrier’s insurance coverage?

You can request proof of insurance from the carrier and review the terms of their policy. Additionally, you can check the carrier’s USDOT and MC numbers to confirm their insurance status through the FMCSA website.

Are personal items in my car covered by the carrier’s insurance?

No, personal items left in the vehicle are typically not covered under the carrier’s insurance. It’s recommended to remove all belongings to avoid potential loss or damage.

What should I do if my vehicle is damaged during transit?

If damage occurs, document it thoroughly with photos upon delivery, note it on the Bill of Lading, and report it to the carrier immediately. You can then file a claim with the carrier’s insurance company for compensation.

More FAQ's

       

References

1. https://www.fmcsa.dot.gov/registration/insurance-filing-requirements
   
2. https://www.fmcsa.dot.gov/faq/who-required-carry-cargo-insurance
   
3. https://www.fmcsa.dot.gov/faq/where-do-i-go-look-motor-carrier-broker-or-freight-forwarders-interstate-operating-authority
   
4. https://www.youtube.com/watch?v=PZ0FvBnyBeY