Car transport insurance guide

Types of car transport insurance

• Carrier cargo insurance: Required by law for all licensed carriers, covering damage during transport. Typically $100,000-$250,000 per load with per-vehicle sub-limits.
• Carrier liability insurance: Separate from cargo insurance, this covers third-party damages (other vehicles, property) if the carrier causes an accident.
• Gap insurance (supplemental): Additional coverage purchased for high-value vehicles when carrier insurance is insufficient. Fills the 'gap' between carrier coverage and vehicle value.
• Personal auto insurance: Your regular car insurance typically does NOT cover transport—it covers you driving the vehicle, not commercial transport.
• Credit card insurance: Some premium cards offer rental car coverage but rarely cover shipping or transport situations.

What carrier insurance covers

• Major damage from accidents during transport (collisions, rollovers, falling objects)
• Theft of the entire vehicle while in carrier custody
• Fire damage to the vehicle during loading, transport, or unloading
• Damage from improper loading or securing by the carrier
• Weather damage during enclosed transport (carrier negligence)
• Damage from other vehicles on the same carrier sliding or shifting
• Vandalism while vehicle is in carrier's secured custody

What carrier insurance typically does NOT cover

• Pre-existing damage documented on the Bill of Lading at pickup
• Personal items left in the vehicle—these are never covered by carrier insurance
• Normal wear and tear or minor cosmetic issues below deductible amounts
• Damage from acts of God during open transport (hail, falling trees, debris) unless carrier negligence
• Mechanical failures or breakdowns during transport
• Damage you discover weeks after delivery and didn't note at pickup
• Indirect losses like rental car costs, lost wages, or inconvenience
• Damage occurring before pickup or after final delivery and sign-off

Understanding coverage limits and deductibles

Most carriers maintain $100,000 to $250,000 cargo insurance per load with per-vehicle sub-limits typically ranging from $50,000 to $100,000. This means even if total load insurance is $250,000, your individual vehicle might be capped at $100,000. For vehicles worth more than the per-vehicle limit, you'll want supplemental gap insurance. Some policies include deductibles (typically $250-$1,000) that the carrier may attempt to pass to customers—clarify this before booking. Always verify the carrier's exact coverage limits and get the Certificate of Insurance in writing.

When to purchase supplemental gap insurance

• Vehicles valued over $50,000 where carrier insurance may be insufficient
• Classic, antique, or collectible vehicles with values exceeding standard coverage
• Exotic or luxury vehicles requiring replacement cost coverage, not depreciated value
• Show cars or vehicles with expensive custom modifications not fully covered
• Vehicles with significant sentimental value where standard coverage feels inadequate
• Multiple high-value vehicles shipped together approaching per-load limits
• International shipping where carrier insurance may have different terms or limits

Proper documentation to protect yourself

• Pre-pickup photos: Take 15-20 photos from all angles in good lighting, including close-ups of any existing damage, all four corners, wheels, undercarriage if visible
• Bill of Lading: This document records vehicle condition at pickup and delivery—review and sign carefully, noting every mark, scratch, or ding
• Timestamp everything: Use your phone's timestamp feature or email photos to yourself for date verification
• Walk-around inspection: Do a thorough inspection with the driver at both pickup and delivery, taking your time
• Note even minor damage: Document everything on the Bill of Lading, even small scratches—they establish the pre-shipping condition
• Get carrier insurance details: Request the Certificate of Insurance showing coverage amounts before pickup
• Keep all paperwork: Store the contract, Bill of Lading, insurance certificate, and all correspondence

Filing an insurance claim for damage

• Document immediately at delivery: Photograph any new damage before signing the delivery Bill of Lading
• Note damage on delivery paperwork: Write specific descriptions of all new damage on the Bill of Lading before signing
• Sign 'subject to inspection': If it's dark or you can't see clearly, write 'subject to further inspection' before signing
• File claim within 24-48 hours: Contact the carrier immediately—most require damage reports within 24-48 hours
• Submit complete documentation: Provide before/after photos, signed Bill of Lading, repair estimates, and detailed damage description
• Get repair estimates: Obtain 2-3 estimates from reputable shops for repair costs
• Don't start repairs immediately: Wait for carrier to inspect or approve the claim before making repairs
• Follow up regularly: Stay in contact with the carrier and insurer throughout the claims process

Red flags and how to protect yourself

• Carriers refusing to provide Certificate of Insurance or coverage details before pickup
• Vague insurance information like 'fully insured' without specific amounts
• Pressure to sign delivery paperwork quickly without proper inspection time
• Delivery at night or in poor lighting conditions that prevent thorough inspection
• Claims of 'pre-existing damage' not documented on pickup Bill of Lading
• Carriers without proper USDOT and MC numbers—always verify on FMCSA website
• Companies requiring you to file claims through third parties instead of directly
• Unusual exclusions or limitations buried in contract fine print