Today we will discuss why an insurance company may or may not cover your vehicle transportation expenses.

Whether insurance pays for vehicle transport companies depends on a few factors, including the type of insurance you have, and the specific circumstances involved. Here’s a breakdown:

1. Auto Insurance

Standard auto insurance policies typically do not cover the cost of vehicle transport services. Auto insurance is designed to cover damages, theft, and liability but not transportation.

However, if the transport is needed due to an accident or the vehicle becoming inoperable, some policies might cover the cost of towing or emergency roadside assistance, depending on your coverage.

2. Comprehensive or Specialized Coverage

Comprehensive insurance may cover damages to your car during transport, but you’d need to confirm whether it includes coverage during transit, especially if you’re using a professional service.

Some insurance companies offer add-on coverage specifically for vehicle transport, or they may partner with transport companies to offer such services.

3. Transport Company’s Insurance

Vehicle transport companies usually offer insurance as part of their service or as an add-on to protect your car during transit. It’s essential to understand what their policy covers, such as damage or loss during shipping.

Always review the transport company’s cargo insurance policy to know the limits and what incidents are covered.

4. Rental Car Insurance

If you are relocating or renting a car and need transport services, check whether the rental company offers coverage or if you have a credit card with travel benefits that might include such coverage.

5. Business Insurance

For businesses moving fleets of vehicles, commercial auto insurance or logistics insurance might cover transportation costs under specific conditions.

If you’re unsure, it’s best to speak with your insurance provider or the vehicle transport company to clarify what is covered and whether additional insurance might be needed for full protection.

 

Frequently Asked Questions

Does auto transport insurance cover my car in transit?

Yes. Federally registered carriers are required to hold cargo insurance that covers damage caused while the vehicle is in their care. Always ask for the certificate before booking.

What does auto transport insurance not cover?

Personal belongings left inside the car, pre-existing damage recorded at pickup, acts of nature in many policies, and mechanical failure unrelated to handling.

How much auto transport insurance should a carrier hold?

Open carriers commonly carry $100,000 to $250,000 in cargo cover across the whole load. Enclosed operators carrying high-value vehicles typically hold substantially more per vehicle.

How do I file a claim if my car is damaged?

Note the damage on the bill of lading before you sign, photograph it at delivery, then file with the carrier in writing. The signed bill of lading is the document the claim turns on.

Do I need my own insurance as well?

Your personal auto policy generally does not cover a vehicle while a carrier is transporting it, so the carrier’s cargo cover is what protects you. Check both before you book.

Related Guides

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