Car Shipping Insurance: A Comprehensive Guide

Car Shipping Insurance provides comprehensive protection while transporting your car across country lines, and all auto transporters must carry this coverage as part of their service agreement. It differs from liability coverage because it offers more comprehensive protection for accidents. This type of policy is also referred to as cargo insurance.

Car Shipping


Car shipping involves moving cars, trucks, vans, and other vehicles between locations.

The industry is vast and flourishing with thousands of service providers located within individual states as well as nationwide and internationally – which offers consumers many benefits because competition drives companies towards offering competitive pricing models.

To secure the best price on car shipping services, select a reputable provider with years of experience and an impressive track record.

When assessing their services and policies, take careful note of customer reviews and ask for quotes before making your final decision. Also, try booking as early as possible so they have enough time to locate carriers with pickup windows for your shipment.

Car shipping rates depend on many variables, including vehicle type and condition, distance, delivery method, and door-to-door deliveries versus terminal-to-terminal drop-offs.

Door-to-door deliveries tend to be more costly; terminal drop-offs can save money. When shipping during peak vacation seasons or when fuel prices increase significantly expect your transportation fees to increase accordingly.

When you are transporting your vehicle, it is also important to understand the insurance coverage offered by your transport company. Let’s take a closer look.

Insurance Coverage


Car shipping insurance is a type of cargo insurance designed to safeguard vehicles during transport. This policy protects against loss or damage due to theft, accidents, natural disasters, and other forms of loss or damage. Many consider their vehicles their second most significant investment and want to take all steps possible to ensure their protection and safety.

Start by researching reputable car shipping companies. Look for ones with a good track record and positive customer reviews. You can ask for recommendations from friends or family or use online resources to find reliable companies.

Contact several car shipping companies and obtain quotes. This will help you compare costs and services. It’s important to understand what each quote covers and what it doesn’t, especially in terms of insurance.

Ask each company about the coverage included in their service. Ensure it’s sufficient to protect your car in case of damage or loss during transportation. Most auto transport companies must offer insurance to both their customers and carriers, with some shipping companies even providing additional coverage options for high-valued vehicles.

Car shipping brokers act as intermediaries between their customers and auto carriers for auto transport services.

Although brokers aren’t required to carry insurance policies themselves, many may offer extra coverage if your vehicle exceeds its carrier’s coverage limit. When selecting your broker make sure to ask about their policy as well as claims handling procedures prior to making your selection.If you feel the coverage provided by the shipping company is insufficient, consider purchasing additional insurance from a third-party provider. This will provide extra protection.

Take the time to research and understand your insurance options to protect your investment during transit.


Preparing for the transportation of a car involves considerable planning. This involves washing it, conducting a visual inspection, and noting any existing damages on the Bill of Lading or Car Shipping Condition Report documents – documents that provide transparency and accountability throughout your vehicle’s journey.

Make sure the oil, coolant, and brake fluid levels in your car are adequate, while checking tires and batteries regularly to help avoid breakdowns and delays caused by unexpected malfunction. You can click the link: to learn how to check your brake fluid.

Be sure to remove all personal belongings from the vehicle in order to reduce theft during transit and make your driver happy by not over-fueling it as this reduces the risk of flammable gas igniting in the cargo area during transportation.

Make sure to take pictures and make notes of your car’s condition before shipping. This will serve as evidence in case you need to make a claim. Keep copies of all the documents related to your car’s shipping and insurance, including the shipping contract, insurance policies, and any communication with the shipping company or insurance provider.

Upon receiving your car at the destination, thoroughly inspect it for any damage. If you find any issues, document them with photographs and notify the shipping company immediately.

Claims Process


As stated earlier, many Americans highly value their investment in their vehicle. That is why it is important to know that car shipping insurance is an integral component of safeguarding your investment. While damage during transport is unlikely, it is still beneficial to understand what coverage exists and how to file claims if necessary.

When researching car transport companies, always request proof of insurance and detailed information regarding coverage, exclusions, and deductibles. Furthermore, speaking to your auto insurer regarding special coverage while your vehicle is being shipped can also be helpful.

If you are working with a broker, make sure they provide carriers with adequate cargo insurance and can handle damage claims promptly. Also, consider supplementary coverage in case something not covered by your carrier policy goes amiss.

Before shipping, carefully inspect and document the condition of your vehicle with clear photos taken at different points throughout its journey; this will speed up the claims process if needed.

Final Words

When searching for an auto transport company, make sure it fits your needs in terms of experience and services offered.

Compare their pricing, customer service reviews, and insurance policies before making an informed choice. When purchasing additional shipping insurance policies such as liability and cargo coverage in addition to collision, be sure to check a company’s registration with the Department of Transportation (DOT).

When your driver delivers your auto it is essential that any existing damage be noted against its original condition recorded in its Bill of Lading; doing this can lower risk claims; take photos as evidence if necessary.