What You Need to Know About Insurance Coverage in Auto Transport
When shipping a vehicle, whether for relocation, purchase, or business purposes, understanding auto transport insurance is crucial for ensuring your car is protected during transit. While most auto transport companies offer some form of insurance coverage, the details of what is covered, the level of protection, and any potential gaps in coverage can vary widely from one company to another.
In this article, we’ll walk you through everything you need to know about car shipping coverage, the types of insurance available, and how to make sure your vehicle is adequately protected during the shipping process.
What Is Auto Transport Insurance?
Auto transport insurance refers to the protection that covers your vehicle while it’s being transported by an auto shipping company. This insurance is designed to cover the risk of damage or loss that might occur while your vehicle is in transit. Transport companies are required by law to carry insurance for the vehicles they transport, but the level and type of coverage can vary.
It’s important to understand exactly what is covered by the transport company’s insurance, as well as your responsibilities as the vehicle owner, to ensure your car is fully protected during the shipping process.
Types of Auto Transport Insurance Coverage
Auto transport insurance typically comes in two forms: primary insurance and secondary insurance. Here’s what you need to know about each type:
1. Primary Insurance
Primary insurance is the coverage provided by the auto transport company to protect your vehicle while it is in their possession. This insurance covers damage or loss that occurs while the vehicle is being loaded, during transport, or unloaded. Most auto transport companies are required by law to carry this insurance, but the specifics of the coverage can vary.
What It Covers:
- Damage caused during transit: This includes accidents, weather-related damage, and any incidents that occur while the vehicle is on the transport truck.
- Theft: If your vehicle is stolen during transport, primary insurance should cover the loss.
What It Doesn’t Cover:
- Pre-existing damage: If your vehicle had damage before shipping, the company’s primary insurance generally won’t cover repairs for that.
- Personal items: Most auto transport companies do not allow personal items to be transported inside the vehicle, and even if they do, the insurance usually won’t cover damage to those items.
2. Secondary Insurance
Secondary insurance is additional coverage that you may choose to purchase if you feel the primary insurance provided by the transport company is insufficient. This type of insurance can offer more comprehensive protection or higher coverage limits, and it may include additional benefits, such as coverage for personal items inside the vehicle.
Why It Works:
- Secondary insurance is particularly important for people shipping high-value cars, luxury vehicles, or classic cars that require extra protection.
- This insurance can also fill in gaps in the transport company’s primary coverage, providing higher coverage limits or covering specific types of damage not included in the primary policy.
3. Cargo Insurance
In some cases, transport companies offer cargo insurance as part of the shipping process. This is a separate form of coverage from the standard primary insurance and typically covers the load being transported in case of accidents or unexpected events during the transport process.
What It Covers:
- Damage caused by weather or accidents that occur while transporting the vehicle.
- Breakdowns or mechanical failures that might result in damage to the car.
How to Ensure Adequate Coverage for Your Vehicle
When booking an auto transport service, it’s important to confirm the details of the insurance coverage and ensure that it meets your needs. Here are some steps you can take to ensure your vehicle is adequately protected:
1. Ask for Proof of Insurance
Before signing a contract with an auto transport company, ask them to provide proof of their insurance coverage. Ensure that the insurance is valid and up to date, and check that the coverage limits are adequate for the value of your vehicle.
Why It Works:
- By requesting proof of insurance, you can verify that the company complies with industry standards and that your vehicle will be covered in the event of damage or loss.
- Ensuring sufficient coverage limits gives you peace of mind that your vehicle is fully protected.
2. Review the Insurance Policy
Ask for a detailed explanation of what the transport company’s insurance policy covers. Understand what types of damages are included and what exclusions may apply. For example, some policies may exclude certain weather-related damage or specific types of accidents.
Why It Works:
- Having a clear understanding of the policy terms helps you make an informed decision about whether additional insurance is needed.
- Exclusions like weather damage or accidents caused by road conditions can significantly affect your vehicle’s protection, so it’s important to know these details upfront.
3. Consider Additional Coverage for High-Value Cars
If you’re shipping a luxury vehicle, classic car, or a high-value sports car, consider purchasing additional coverage to ensure that your car is fully protected. In these cases, the standard insurance offered by the transport company may not provide enough coverage for the value of your vehicle.
Why It Works:
- High-value vehicles are often more prone to significant financial loss in the event of damage, so having extra coverage ensures that you won’t be left with an unexpected bill.
- Additional coverage can provide peace of mind during the shipping process, especially for rare or collectible cars.
4. Document Your Vehicle’s Condition
Before your vehicle is picked up for transport, make sure to inspect it thoroughly and document its condition. Take clear, detailed photos of the car’s exterior, interior, and any existing damage. This documentation will be helpful if you need to file a claim for damages later.
Why It Works:
- Documenting the car’s condition before shipping allows you to prove that any damage occurred during transport rather than before it.
- This documentation protects you in case you need to file a claim for damage that was caused during the shipping process.
Tip:
If the car has significant pre-existing damage, make sure to document it thoroughly to avoid confusion or disputes later.
Common Gaps in Coverage
While auto transport insurance provides important protection, there are some gaps you should be aware of:
- Personal Items: Most transport companies do not cover personal belongings left in the vehicle. Always remove any valuables before shipping.
- Mechanical Failure: Mechanical failure may not always be covered, so ask if the insurance will cover non-collision damage caused by issues like a breakdown.
- Weather Damage: In certain cases, damage caused by weather conditions, such as flooding or hail, may not be covered under the transport company’s policy.
Understanding auto transport insurance and the coverage options available is a crucial step in ensuring that your vehicle is fully protected during shipping. Always choose a reputable transport company that offers sufficient car shipping coverage and provides clear documentation of their insurance policies. Whether you’re shipping a standard car or a high-value vehicle, knowing what’s covered and what’s not will help protect your investment and give you peace of mind during the shipping process.
Before booking auto transport services, make sure you ask about their insurance coverage and consider any additional options if necessary to guarantee that your vehicle arrives at its destination safely and securely. Search for insurance that is right for your needs. It is important if you rent a car.
