Whether you’re moving to a new house, buying a car online, or just relocating for the seasons, one thing that usually gets sacrificed is fixing up and shipping your car. Is there insurance available to cover shipping damages?
The answer to this question is both yes and no. Companies that offer vehicle shipments have to legally hold some form of insurance. However, once again, this answer is not as simple as relying solely on carrier insurance will only give you minimal protection in case damages occur. If you are about to move my car, understanding the ins and outs of insurance policies related to moving vehicles around is extremely important prep work.
In this article, we will break down transport protection policies with regard to how they function, identify some of their flaws are and help keep your car safe during these processes. We’ve also included handy reminders in our checklist, so if items don’t slip through your fingers, you won’t miss anything come moving time.
The Legal Requirement: All Carriers Must Have Insurance
Every auto transport freight service needs at least one lawsuit policy protecting against claimed fines which undercovers damage exceeding expenses, including laced parts in their service, such as the big-name companies for car restraint slingers known as tow truck drivers, automating sand locomotives.
While those might sound reassuring, here’s what most people do not know: policies often have restrictions and deductibles that can leave you with costs if something goes wrong.
Because of this, understanding the type of insurance your transporter has, how much it covers, and if supplemental coverage is necessary is crucial.
What Does The Carrier’s Insurance Usually Cover When Paying the Whole Company?
Most car shipping companies offer two main types of coverage:
-
Liability Insurance
This type of insurance pays for damages to your vehicle due to the carrier’s negligence, like accidents (improper loading/unloading or failure to secure). However, liability insurance does not pay for weather-related damage or theft, or non-accident-related damage as well.
-
Cargo Insurance
Cargo insurance specifically aims at protecting materials during transit, meaning your vehicle. Some coverages are way better than others; some cargo carriers would only cover up to fifty thousand dollars worth, while some will give a limit of two-hundred fifty thousand dollars or more on enclosed shipments.
Cargo insurance typically covers:
- Physical damage occurs during cargo handling and loading/unloading.
- Transportation damages, including damage caused by collisions and trailer overturns.
- Mechanical failure during transportation.
Insurance does not cover:
Items stored in the vehicle.
Missing items are not limited to personal items such as luggage and electronics but also include vehicles specialized features which fall under custom work or aftermarket parts.
Vehicle modifications and paint jobs done post-sale are not covered under insurance, just like aftermarket style changes made after purchase also don’t qualify for coverage.
Judgment criteria for weather-related claim denial revolve around acts of god being uninsurable unless they have specific provocation clauses stating otherwise.
Damage caused while charging the vehicle (includes but isn’t limited to dead batteries or transmission failures) is generally considered negligence on the part of the vehicle operator, thus uninsurable.
Claims involving documenting pre-existing scratches or self-inflicted dings that exhibit during transit face heavy scrutiny unless solid evidence proves otherwise.
Complying with the prescribed shipping policy avoids abandonment of public property bearing personal belongings.
Use might not be eligible to claim damages for loading damages if your vehicle has low ground clearance and it hasn’t been disclosed prior to transportation.
This is exactly why you should always prepare a moving checklist before giving over the car.
What do you need to do Before Moving Your Car?
The car transportation service manual steps are outlined in three general subheadings that you will have to follow:
-
Always get a copy of the insurance cover
For these sorts of cases, most reputable car shipping companies will gladly share their paperwork with you. Check it closely for:
- Coverage limits
- The specific exclusions
-
Inquire Information
Inquire about all these issues in order to confirm aren’t exposed to which may lead to loss or increased risk:
- Are there limits on expense coverage?
- How do I submit claims?
- Are there any deadlines for submitting reports on inactive damage?
-
Take Photos as Proof
Take timestamped pictures circling around the vehicle, showing its current state, which includes tires, and even the underbody of the vehicle, if possible. Doing this will make disputing issues easier if they arise later.
-
Take Out All Personal Items
As was highlighted, personal effects ineffectively protected by means policy terms protection would almost always lead to voided protection in regard to items being left inside the car, deceptively negating any form of assistance when one seeks aid for stolen possessions, claiming sheltered cover inanity.
-
Use a Proper Moving Checklist
Your pre-shipping checklist should include:
- Wash the vehicle
- Check tire pressure and fluid levels
- Disable alarms
- Leave 1/4 tank of gas
- Give the spare key to the driver
- Sign the Bill of Lading and keep a copy
Should You Purchase Additional Insurance?
Depending on your vehicle’s value, purchasing additional car shipping insurance might be particularly wise for classic or luxury vehicles.
Temporary insurance for transit may be issued by third-party insurers or even your own auto insurance company, allowing you some peace of mind. This is especially useful if:
Your carrier’s coverage is too low. You’re using open transport for a high-value vehicle. You’re shipping during winter or storm season. Your vehicle has custom parts or aftermarket modifications.
Speak to your insurance agent, and if needed, get estimates from specialty insurers.
What If Damage Occurs During Shipping?
If your automobile sustains damage while being transported, take the following actions right away:
- Inspect Vehicle Immediately After Delivery
- Take your time; review it, compare it to pre-shipping photos during daylight if possible.
- Note Any Damage on the Bill of Lading
This is your official record. Do not sign the Bill of Lading without noting visible damage.
- Take New Photos and Videos
- Document all angles and affected areas.
- Contact the Carrier Immediately
File a claim as soon as possible—most companies have a 24–48 hour window for claim submission.
Follow Up in Writing
Send your complaint and documentation via email to establish a record of communication.
Final Thoughts
So, is car shipping covered by insurance? Yes – but not always the way someone might think. The carrier must provide coverage, but it sometimes requires calling in certain restrictions. To be truly protected, policyholders need to be informed, proactive, and prepared.
Before you move my car, take the time to:
- Review the carrier’s policy
- Ask the right questions
- Document your vehicle’s condition
- Add insurance considerations to your moving checklist
Your coverage directly depends on how well you document everything and whether you understand your rights will minimize risks related to claim denials during transportation, ensuring that the entire process goes seamlessly.
About the Author
