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

When shipping your car, it's essential to consider getting car transportation insurance. Car transportation insurance is a type of insurance that covers damages or losses incurred during the transportation of vehicles from one location to another. Here in this article, we'll provide you with a brief overview of the importance of car transportation insurance and why it's crucial to invest in it when shipping your car. 

Car transportation insurance is a vital aspect of shipping a car, as it protects the vehicle during the transportation process. It covers damages or losses incurred during transportation, such as collisions with other vehicles, damage caused by weather conditions, or theft. Proper insurance coverage ensures that you won't be left with the financial burden of repairing or replacing your vehicle in case of damage or loss during transportation.

Understanding Car Transportation Insurance

Car transportation insurance covers vehicles a third party, such as a shipping company, is transporting. This insurance protects your car from damage or loss while in transit.

What Does It Cover?

Car transportation insurance typically covers damage to your vehicle that occurs during transit. It can include damage from accidents, theft, vandalism, and natural disasters. Depending on the policy, it may also cover damage to other vehicles or property due to the transit.

Types of Car Transportation Insurance

Several types of car transportation insurance policies are available, each with its level of coverage. Some common types of car transportation insurance include:

Standard Coverage: 

This type of insurance covers damage to your vehicle during transit. It typically provides coverage for theft, collision, and other types of damage.

Full Coverage: 

This type of insurance provides comprehensive coverage for your vehicle during transit. It typically includes coverage for theft, collision, natural disasters, and other types of damage.

Third-Party Coverage: 

This type of insurance covers damage to other vehicles or property due to the transit.

Is Car Transportation Insurance Required for Shipping a Car?

The response to this query depends on several elements, including where you live, where you're shipping your car and the shipping company you're using. In some cases, car transportation insurance may be required by law, while in others, it may be optional.

Legal Requirements for Car Transportation Insurance

In the United States, car transportation insurance is regulated at the state level. It means that the legal requirements for car transportation insurance can vary depending on where you live.

In general, if you're shipping your car within the same state, you may not be required to have car transportation insurance. Yet, you might need insurance if you send your automobile over state borders. Additionally, if you're shipping your car internationally, you will likely need to purchase international car transportation insurance.

Situations Where Car Transportation Insurance May Not Be Required

Although it may be necessary for some circumstances, automobile transportation insurance may only sometimes be required. 

For example, if you're shipping your car a short distance, such as across town, you may not need insurance. Additionally, some shipping companies may offer insurance coverage, which can be an alternative to purchasing a separate policy.

Why You Should Consider Car Transportation Insurance

Protection against damages: 

Car transportation insurance provides coverage for any damage that may occur during transit. It can include scratches, dents, or even complete write-offs. Remember that while most transportation providers will provide some amount of insurance, more is needed to protect the value of your car entirely.

Peace of mind during transportation: 

Transporting a car can be a stressful experience, especially if you are moving across the country or shipping a high-value vehicle. Car transportation insurance provides peace of mind by ensuring that you are protected against any unforeseen circumstances.

Avoiding financial losses:

You can pay the bill for any vehicle damage during transport with proper insurance coverage. It can be a costly and unexpected expense, which can strain your finances.

How to Obtain Car Transportation Insurance

Options for purchasing car transportation insurance: 

There are different options for purchasing car transportation insurance, depending on the shipping company and the type of coverage you need. Some shipping companies offer insurance as part of their standard package, while others require you to purchase additional coverage separately.

Another option is to purchase insurance from a third-party insurance provider that specializes in car transportation insurance. These companies offer a variety of coverage options, including full coverage, comprehensive coverage, and liability coverage.

What to Look for in a Car Transportation Insurance Policy

When shopping for car transportation insurance, there are several things to consider to ensure that you get the best coverage for your needs:

  1. Coverage Limits: Make sure that the coverage limits are sufficient to cover the value of your car and any other expenses that may arise in case of an accident or damage.
  2. Exclusions: Check for any exclusions or limitations in the policy, such as deductibles, exclusions for certain types of damage, or restrictions on coverage for certain types of vehicles.
  3. Claim Process: Understand the claim process and the steps you need to take in case of any damage or loss during transit.
  4. Reputation of the Insurer: Research the reputation of the insurance provider and read customer reviews to ensure that they have a good track record of paying claims promptly and fairly.

Cost of Car Transportation Insurance

The cost of car transportation insurance varies depending on several factors, including the value of your car, the type of coverage you need, the distance of transport, and the shipping method. On average, car transportation insurance costs between 1% and 3% of the value of the car.


In conclusion, purchasing car transportation insurance when shipping your car is highly recommended. The types of coverage available include comprehensive, liability, collision, and personal injury protection. Proper insurance coverage can protect you from financial loss, give you peace of mind, and ensure you meet any legal requirements. Don't risk damaging your vehicle or facing unexpected expenses – ensure you have proper car transportation insurance coverage before shipping your car.