What Are the Types of Car Shipping Insurance?

It’s not always feasible to drive your car a long distance to get it where you need it to be. If you purchase a vehicle from a dealer across the country or you need your car with you after a cross country move, car shipping is an excellent way to get it there.

But, it’s not without some challenges. Shipping your car using an auto transport company is expensive. You’ll save mileage and wear-and-tear on your car, but there are risks to shipping your vehicle. This is why having the proper shipping insurance is extremely important.

How can you protect your car and your wallet? You need the right kind of shipping insurance when transporting your car. Keep reading to learn about the types of shipping insurance available to you.

What Are the Types of Car Shipping Insurance? 4

What Is Auto Transport?

You’ve seen semi-trucks pulling a trailer full of cars on the road. When using an auto transport company to ship your car, your car could be one of those cars!

Auto transports use open trailers or closed containers to move cars across town or the country. Rather than taking a road trip to drive your car to a new location, you trust a professional company to pack and deliver your vehicle.

If your car is safely inside a transport trailer or a container, what could go wrong? Plenty! With insurance, you’re protected against accidents or damage to your car after you hand it over to your auto transport company for travel and delivery. 

What Are the Types of Car Shipping Insurance? 5

What Kind Of Damage Can Happen?

Aside from an accident between your car hauler and another vehicle or an act of nature, your car can sustain damage while in transport.

  • Dents or scratches
  • Fluid leaks from jostling inside the trailer
  • Undercarriage or roof damage
  • Interior fabric tears or scratches
  • Alignment issues
  • Failure to start after arrival

It’s critical to document the condition of your car before you leave it with your transport service. While it’s often safer and less stressful on your car to ship it a long-distance, minor problems can happen while loading, unloading, or during transport.

With insurance, you have financial protection from any problems—large or small.

Your Carrier Should Have Insurance

Before you leave your car with a transport company, make sure the carrier has the right insurance. If you are working with a legal transport company, they muse follow minimal requirements for insurance coverage.

Liability Insurance

The Department of Transportation requires a minimal level of liability insurance for carrier companies. Be sure you ask to see proof of this insurance and the amount of coverage.

Your car or truck is a significant asset. Never hand it and the keys to a transport company without confirming that they have the minimum legal requirements for liability insurance. If anything happens to your car while in the care of the transporter, you want their insurance to cover the costs for repairs.

The company’s liability insurance also covers injury to its drivers and employees if an accident happens while transporting your car.

Cargo Insurance

In addition to liability insurance, ask if your carrier has cargo insurance. Liability insurance often comes with limitations to what it covers and how much it will pay out for a claim.

Cargo insurance helps bridge the gap if liability coverage isn’t enough to recover your costs when something happens to your car while in transport. 

Be aware that additional insurance offered through your carrier company can add costs to your transportation bill. You might also be responsible for a deductible if an accident causes damage to your car. However, paying a little bit more to protect your car during transport is worth it to make sure it arrives safely. 

What Are the Types of Car Shipping Insurance? 6

Check Your Personal Auto Coverage

Before loading your car onto a transport, be sure you check your personal auto coverage policy. Your policy protects you and your car from an accident while you drive it. However, not all policies cover damage to your vehicle if it’s not under your control at the time of an accident.

When scheduling your car shipping service, contact your auto insurance provider.

  • Let them know you are shipping your car.
  • They might require proof of the company’s insurance policies.
  • Confirm the coverage through your personal auto policy.
  • If requested, provide photos of the condition of your car before you deliver it for transport.

In many cases, even if your auto policy doesn’t cover car transportation services, your transport company’s insurance policies should provide plenty of protection. 

Ask Plenty of Questions

You would rarely need to purchase additional short-term insurance coverage outside of what your transport service provides. However, be sure you ask plenty of questions about insurance before committing to a transportation company.

Make sure less obvious things have coverage under the company’s policies. Car accessories, after-market part installations, and electronics can be susceptible to damage during transport. Ask about any exclusions in the carrier’s insurance policy that might leave you with an expense if your car’s electrical system receives damage while en route.

If you aren’t comfortable with the level of insurance offered by one car shipping service, keep looking until you feel confident that a company will deliver your car safely to its new destination. 

Shipping Insurance Protects You and Your Car!

You choose a car shipping service to protect your car over long distances. In many cases, it’s a better option than driving from Maryland to Florida and risking damage from the road or an accident. With the right shipping insurance, your have the protection you need for your car to arrive safely.

It’s critical to trust your car shipping company to deliver your car in excellent condition or provide financial coverage in case of an accident or damage. Geyers Auto Transport Company has more than twenty years of experience delivering cars up and down the east coast. Contact us about shipping your car to its next destination!

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