Quick answer: Car shipping insurance mostly means the carrier’s cargo insurance, which pays for damage the carrier causes while your car is in its care. It does not cover damage that was already there, personal items in the car or, in most cases, weather. Your own auto policy is not needed for shipping but may help if the carrier’s cover falls short. Check the carrier’s certificate before pickup, and inspect your car at pickup and delivery, because a claim depends on what is written on the bill of lading.
Most car shipments arrive without a problem, but it pays to know who covers what before you hand over the keys. There are several kinds of insurance involved, federal rules require less than many people think, and the way a claim is handled depends on a few minutes of paperwork at delivery. This guide explains what car shipping insurance covers, what it does not, whether your own policy helps, who pays the deductible and how to file a claim.
Who Insures Your Car During Shipping?
| Type of cover | Who holds it | What it does for you |
|---|---|---|
| Cargo insurance | The carrier | Pays for damage to your car that the carrier causes while it is in its care |
| Liability insurance | The carrier | Covers injury and damage the truck causes to other people and property |
| Broker bond | The broker | $75,000 in financial security filed with FMCSA; it protects against a broker failing to pay, not damage to your car |
| Your auto policy | You | May help through comprehensive or collision cover if the carrier’s insurance falls short; your deductible applies |
What Federal Rules Require
The Federal Motor Carrier Safety Administration (FMCSA) requires for-hire carriers to file liability insurance: $750,000 for trucks of 10,001 pounds or more, and $300,000 for lighter ones. It does not require cargo insurance for car carriers. Federal cargo insurance rules apply only to household goods movers.
In practice, reputable car carriers carry cargo insurance anyway, and ABC Auto Shipping requires the carriers in its network to carry both cargo and liability insurance. But because the law does not demand it, always ask for the carrier’s cargo insurance certificate. Brokers must keep a $75,000 surety bond or trust fund on file with FMCSA.
What Carrier Cargo Insurance Covers and Excludes
| Situation | Covered by the carrier? | Notes |
|---|---|---|
| Damage the driver causes while loading, hauling or unloading | Yes | Ask whether the policy covers loading and unloading, not only time on the truck |
| Damage from a crash involving the truck | Yes | Up to the policy’s per-vehicle limit |
| Hail, floods and other acts of nature | Usually not | ABC is not responsible for acts of nature; your comprehensive cover may help |
| Damage already there at pickup | No | This is why existing damage is marked on the bill of lading |
| Personal items left in the car | No | ABC allows up to 100 pounds of personal items, uninsured |
| Mechanical or electrical faults not caused by handling | No | A battery that goes flat or a part that wears out is not transport damage |
| Loose or low-hanging parts left on the car | Often not | ABC is not responsible for spoilers, air dams or other low-hanging items that were not removed |
| Damage not written on the bill of lading at delivery | No | At ABC, no claim is honored unless the damage is noted at delivery and acknowledged by the driver |
Does My Own Car Insurance Cover Shipping?
Usually you do not need your own policy for the car to be shipped, because you are not driving it. But your policy may still help. Progressive, for example, says comprehensive cover may pay for damage in transit from theft, vandalism, fire or severe weather, and collision cover may pay if the car is damaged in a crash while being transported. Any payment from your own policy is reduced by your deductible.
Before you ship, call your insurer and ask:
- Does my policy cover the car while a carrier is moving it?
- Does comprehensive cover weather damage on an open trailer?
- Do I need to keep the policy active during shipping?
- What is my deductible, and would a claim affect my premium?
If you are moving to a new state, ask about switching your policy too.
Who Pays the Deductible?
There can be two deductibles:
- The carrier’s deductible. Cargo policies often have one. Ask who pays it before you book. For damage the carrier caused, it should be the carrier’s cost, not yours, so get the answer in writing.
- Your own deductible. If you claim through your own policy instead, for example for hail on an open trailer, your normal deductible applies.
How Much Cargo Insurance Should a Carrier Have?
Enough to cover your car. What matters is the per-vehicle limit, not the total for the whole load, because a policy that covers a full trailer may cover much less for any one car. For a high-value car, tell the company what it is worth. At ABC, you can declare an agreed value, and we match you with a carrier whose policy covers it. Enclosed carriers that move high-value cars usually carry higher limits; see how to transport a luxury or exotic car.
Is Insurance Included in the Price?
At ABC, yes. The quote is all-inclusive, so there is no separate charge for the carrier’s cargo insurance, and the quote you accept is the price you pay. For typical prices by distance, see our car shipping cost guide. If another company quotes insurance as an extra, ask what it adds beyond the carrier’s own cover.
How to Check a Carrier’s Insurance Before Pickup
- Ask for the certificate of insurance for the carrier that will move your car. With a broker, ask once a carrier is assigned.
- Check the name and dates match the carrier and the dates of your shipment.
- Check the per-vehicle cargo limit against your car’s value.
- Ask about exclusions, such as weather, and whether loading and unloading are covered.
- Ask about the deductible and who pays it.
- Look up the carrier on FMCSA’s SAFER site to confirm it is authorized. FMCSA’s licensing and insurance records show the liability insurance it has on file.
For more questions worth asking, see our questions to ask before booking.
If More Than One Carrier Handles Your Car
On some routes, a shipment is handed from one carrier to another. ABC’s terms note that your car may be subcontracted to more than one carrier, and if that happens, the transporting carrier’s terms and conditions apply. So ask for the insurance certificate of the carrier that actually picks up your car, and if a second carrier will deliver it, ask for that one too. Keep both with your bill of lading.
Open vs Enclosed and Your Cover
Weather and road debris are the risks a carrier’s cargo policy is least likely to pay for, and they are the risks an open trailer is most exposed to. If your car would be expensive to repaint, enclosed transport reduces the chance you ever need to claim. If you ship open, check that your own comprehensive cover is active for the trip.
How to File a Car Shipping Damage Claim, Step by Step
- Inspect the car at delivery before you sign, against the pickup report and your photos.
- Write the damage on the bill of lading, specifically, and have the driver acknowledge it. At ABC, a claim is honored only if this happens at delivery.
- Photograph the damage in good light, close up and from a distance, and keep your signed copy.
- Contact ABC Auto Shipping straight away with the bill of lading and your pickup and delivery photos.
- Get a repair estimate from a body shop.
- Submit the claim in writing to the carrier’s insurance, with the bill of lading, photos and estimate, and keep copies of everything.
- If the carrier’s cover falls short, ask your own insurer whether your policy can help.
When Extra Cover Makes Sense
- The car is worth more than the carrier’s per-vehicle limit. Ask for a carrier with a higher limit, or declare an agreed value.
- It is a classic or collector car. A collector car policy may cover the car in transit at an agreed value; ask your insurer.
- It will ride on an open trailer through hail season. Check that your comprehensive cover is active, or choose enclosed auto transport.
- It is new, rare or has custom work that would be hard to repair or replace.
Common Insurance Mistakes
- Assuming every carrier must carry cargo insurance
- Checking the total load limit instead of the per-vehicle limit
- Leaving valuables in the car
- Signing a clean delivery report and finding damage later
- Cancelling your own policy before the car arrives without asking your insurer
Frequently Asked Questions
Does car insurance cover shipping?
Your own policy is not needed for the car to be shipped, but comprehensive or collision cover may help if the carrier’s insurance falls short. The carrier’s cargo insurance is what normally pays for damage it causes.
Can I ship a car without insurance?
In most cases, yes. You are not driving the car, so you do not need your own policy for it to be shipped. The carrier’s cargo insurance covers damage the carrier causes. For a valuable car, consider keeping comprehensive cover in place.
Who pays the deductible if the carrier damages my car?
Ask before you book and get it in writing. For damage the carrier caused, the deductible on the carrier’s policy should be the carrier’s cost. If you claim through your own policy, your own deductible applies.
Is auto transport insurance included in the price?
At ABC Auto Shipping, yes. Quotes are all-inclusive, so there is no separate charge for the carrier’s cargo insurance.
What does auto transport insurance not cover?
Damage that was already there at pickup, personal items in the car, mechanical faults not caused by handling, usually acts of nature, and any damage not written on the bill of lading at delivery.
Are carriers required to have cargo insurance?
Not by federal law for car carriers; FMCSA requires liability insurance. Reputable carriers carry cargo insurance anyway, and ABC requires it of the carriers in its network. Always ask for the certificate.
How do I file a claim if my car is damaged?
Note the damage on the bill of lading at delivery and have the driver acknowledge it, photograph it, then contact the shipping company and submit a written claim with your photos and a repair estimate.
Are personal items in the car insured?
No. ABC allows up to 100 pounds of personal items as a courtesy, but they are not insured, so remove anything valuable.
Ship With a Carrier That Is Fully Insured
ABC Auto Shipping is a licensed broker that matches your car with a carrier carrying cargo and liability insurance, with documentation on request before pickup. Your car is insured for damage caused by the driver from pickup until delivery. There is no deposit, and you pay only once your carrier is secured. Get a free quote today.
