Car shipping insurance: what's covered and what isn't
Carriers must carry liability insurance, and most carry cargo coverage, but there are limits and exclusions. Here's what to ask before your car is loaded.
"Is my car insured?" is one of the most common questions people ask before shipping. The short answer is usually yes, but it pays to know what that coverage actually means.
The carrier's insurance
Interstate carriers must have liability insurance on file with FMCSA to keep their operating authority. Most car haulers also carry cargo insurance, which is the policy that pays for damage to the cars on the trailer. Cargo limits vary by carrier and are shared across every car on the truck.
The broker's role
Brokers don't insure your car in transit. They're required to hold a $75,000 bond or trust, which protects people the broker fails to pay, not damage to your car. If you book through a broker, ask which carrier is moving your car and ask for that carrier's insurance certificate.
What's usually not covered
- Personal items left in the car.
- Damage that wasn't noted at delivery on the bill of lading.
- Mechanical problems that weren't caused by the transport.
- Some weather events, especially on open trailers. Check the policy wording.
- Pre-existing damage marked at pickup.
What to ask before booking
- Can you send me the carrier's certificate of insurance?
- What is the cargo coverage limit, and is there a deductible?
- Who pays the deductible if there's damage?
- How long do I have to report damage, and how?
Your own policy
Your auto insurance may also cover the car while it's being shipped. A quick call to your insurer before pickup tells you where you stand.
Protect yourself at both ends with a careful inspection on the bill of lading. It's the evidence any claim depends on.