Posted on 12/13/21

Do You Need Car Transportation Insurance To Ship Your Car

Do You Need Car Transportation Insurance To Ship Your Car

Shipping damage is unlikely. In fact, only 5% of cases have been damaged. You shouldn't trust your gut instinct and apply for insurance.

You don't want your car to be damaged. You must first protect your car and get a good insurance policy. This will allow you to be calm about the car shipping process.

Cargo insurance is often offered by shipping companies.

This article will answer your questions about insurance.

Before I go on, let me say that insurance is not necessary. Most likely your car hauler provides cargo insurance. It doesn't matter if you aren't driving your car.

Some companies will even help you find a weaver, so they are not responsible for any other person's mistakes.

Why should I not transport a car with no insurance?

Auto insurance is not required if you are driving your car and intend to transport it. This doesn't mean you don't need auto insurance. You may still need to drive your vehicle during pickup and delivery. You might also need to drive around your new town.

Your auto insurance can be used as a backup in the event that your transporter's policy isn't sufficient or you experience processing problems. In such situations, if your mover's policy doesn't cover any issue, you will have to pay the premium.

This can be an excellent reason to learn everything you can about auto shipping insurance. Keep reading and I will help you. The next section will explain what you need to do.

Car shipping companies must have insurance

Every transportation company must meet certain standards. Before you make a deal to ship your vehicle, ensure that they meet the minimum requirements for auto shipping insurance.

Transporters must be covered by liability insurance and have a motor carrier (MC), number that is registered with the transportation department. They should also have extensive coverage for cargo insurance.

First, you need to review their insurance policy. The terms and amount of coverage can differ depending on the company. These details can be viewed on the profile of the transporter via their website or an online listing.

You should ask the shipping company for their insurance certificate. As they are legally required to provide you with the certificate, it would be helpful if you were not worried. Once you have the certificate, you can cross-check it at www.safersys.org to verify the information.

Further investigation is possible to determine if the car shipping company will provide a representative to inspect your vehicle prior to and after shipping. To identify potential damage that may have occurred during transportation, it is important to inspect your vehicle thoroughly. Ask the company for a copy of the inspection. Video footage of the inspection is more useful to verify that your can arrives at the drop-off point in good condition.

To get compensation for any damage caused, you will need to file an insurance claim.

Let's look at the next section to find out how much money you could get for your claim. It discusses the different types of insurance that a company might have.

Auto Transport Company Insurance: Does it Provide Enough Coverage?

Extra insurance may be required as the car hauling company's cargo insurance is not sufficient. It is possible that the minimum coverage provided by the company might not cover your entire vehicle's value.

You should ensure that you verify the coverage details for your shipping insurance policy.

When transporting your vehicle from one place to the next, make sure you check that your policy covers three important points. After transportation, the journey begins at the pickup location and ends at the delivery address. You must be able claim compensation for any damage that may have occurred during this time.

Most companies offer cargo and liability insurance. Now you need to decide if the policy amount is right for you. The policies don't usually cover any items that are inside your vehicle. Before you ship your vehicle, be sure to get rid of all personal items.

Next on your list should be the limits of your insurance policy. They usually cover damage during transit like scratches, fire damage and theft, but not loss due to natural catastrophes. (earthquakes, floods, tornadoes, etc.)

These questions can be used to help you determine the amount of additional insurance that you require. These are:

  • What are the limitations policies for shipping insurance?
  • Is the policy applicable to custom-made add-ons for your vehicle?
  • What is the deductible?
  • Are auto transport companies able to offer additional insurance?
  • What kind of damages are covered?

Bottom line: If you own antique or high-priced vehicles, it is highly unlikely that your car hauler will provide cargo insurance to cover the value. When damaged, these types of assets can be costly to repair.

If you use the enclosed carrier option for moving your car, you won't need any additional insurance. These containers offer added protection against any potentially damaging events.

Types of Auto Transport Insurance

No matter if you purchase additional insurance, the terms of a car shipping company's policy may be different than what you have purchased from your auto insurance company.

Your insurance deductible will vary depending on which type of insurance you have. Before you file any claim, either your auto insurance agent nor the car shipper will inspect your vehicle.

Most car shipping companies will verify that your shipment package has the correct type of insurance.

Customers usually have their own auto insurance. This optional coverage is not required for shipping. Next, there are the carriers that require liability coverage. This is essential for car shipping. If you are not dealing directly with an auto transporter, it may be necessary to contact any broker that normally offers supplemental coverage.

Supplemental insurance does not replace liability insurance. It is available for car shipping.

Insurance for Overseas

Even if you don’t have auto transport insurance, it can still work. It is a good idea to get international coverage from an insurance company.

Your car will travel on a boat overseas, where it may be subject to common damages like fire, theft, and dents.

How much does auto transport insurance cost?

It can be viewed as two costs that you must pay.

Personal Insurance

Vehicle transport companies offer car insurance

The other is when you do not opt for extra auto insurance from the insurance company and instead rely on the shipping company for all your needs. In the event of an emergency, you might need to pay a $20-$50 nominal fee for coverage up to $2000. Your usual auto insurance policy costs about $1.5k per year.

Auto Insurance precautions during shipping

You should consider the following tips if you plan to ship your vehicle. These tips can help you make your car shipping experience smoother.

Car Shipping Company Proof of Insurance

You can feel confident about hiring an auto transporter for your car hauling needs if they have proof of their insurance. For your verification, you should ask the auto transporter to provide you with their insurance details.

It's your legal obligation to provide proof to movers so you should be comfortable asking them questions. If they seem hesitant it could be a sign that they are trying to conceal something. It's a good idea to find a trustworthy company. A company that has high ethical standards would make sure you are comfortable before moving your vehicle.

Talk to your Auto-Insurance Company

After the agreement has been signed with the auto transport company you will need to contact your auto insurance provider.

You may have shipping damage coverage already. Check to see if you have any backup coverage.

Before shipping, empty your vehicle

Normally, the policy you buy from your car transporter or personal insurance won't cover any damage to your car's contents during shipping. To ensure your items are safe, remove your belongings from your car before you move.

If anything is stolen during transport, only the vehicle's owner is responsible.

Before and after shipping, inspect your vehicle

If you are not aware of any damage caused by shipping, you cannot claim compensation from the auto insurance company or the transporter. It is important to inspect your vehicle before and after transportation to a new place. It should be a top priority on moving day.

This can be done by taking photos of your car and identifying any damage like dents, chips and scratches.

Do the paperwork and make sure you are properly insured

You must have all paperwork in writing. If the auto transport company offers you a special deal or package that isn't available elsewhere, this is required.

In case of a legal dispute between you and your auto shipping company, paperwork can keep you safe. You must keep all information in the company's regular agreement. This will ensure that you are not subject to any legal action.

Bill of Lading for Auto Shipping Companies

Once your car is delivered to a new address, you will need to complete the Bill of Lading. This is a type of inspection report that you fill out with information about your car's condition.

It is crucial that you do not miss any details as this will be the final moment of the transfer. You can't highlight anything that you haven't signed off on once you sign off.

If your vehicle was delivered at night, it is important to inspect the car in daylight. It is also a smart idea to start the engine and check for mechanical damage. Also, you should take a detailed note of everything and have the driver sign off on it.

Fraud and Fake Companies

There are criminals operating in the auto shipping sector, as well as in the banking industry. The key to playing safe is to believe the fraud is real.

Even fake or invalid USDOT or MC numbers can be obtained by car shipping companies. These companies don't transport. Fake numbers can be used to steal premium racing bikes or your batmobile.

How to file an Auto Insurance Claim

You should know how to file a claim for compensation if your car is damaged in transit.

Yes! No. It is better to be prepared. It is important to have detailed documentation that details the extent of any damage sustained during transit. If the vehicle is damaged, the car shipping company will inspect it and repair it. They will usually resolve the issue quickly and efficiently in order to gain the trust of their clients.

Better Business Bureau can be contacted if you have complaints about an insurance company.

Conclusion

Although the shortest answer to this topic can be a "No", it is important to note that it should not be taken as a recommendation. You must also work with an insurance broker to determine how much additional coverage you will need. It is important to know which type of insurance you can afford and what kind of coverage it is.

After you have calculated the additional insurance amount, it is time to start the journey towards shipping your vehicle. To highlight any damage, it is important to thoroughly inspect your vehicle while you do this. You must have all information necessary to file a claim and receive any support from your insurance company.