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Insurance coverage for cars has grown in recent years with the total transport insurance worth almost $316 billion in 2022. While many vehicle owners already have vehicle coverage insurance, they find it confusing when it comes to car shipping. Insurance can help vehicle owners to recover financial losses in case their vehicle is damaged in transit. 

To answer the question of whether you need to buy car transport insurance, the simple is answer no. This is because most auto transporters already provide insurance for car shipping. In this article, we will take a closer look at understanding insurance coverage in auto transport. 

Vehicle Coverage Insurance: What You Need To Know

Interior of the car and back of a truck cargo.

Most reliable auto transport companies are legally required to have insurance as mandated by the government. There are two types of transport companies: brokers and carriers. Brokers are agents who match vehicle owners with auto carrier companies. Shipping companies own their auto carriers and transport vehicles directly. 

While many transport companies own their own carriers, they may also act as brokers when demand is high. These companies then find a reliable auto transporter who can transport your vehicle through their carrier. 

Important Tip: One important factor in auto transport insurance is that the insurance amount is divided between the number of cars on a carrier. This means that if a carrier has insurance of $100,000 with five cars, each car is only insured for $20,000. 

Types Of Car Transport Insurance 

Three different types of insurance are important in auto shipping. These include your liability car coverage, cargo insurance (also known as carrier insurance), and broker insurance (if applicable). 

Liability Car Coverage

This is the standard vehicle coverage insurance you already have on your car at the time of buying. Liability car coverage is primarily used to cover financial losses arising from car accidents. It also covers the health costs of injured persons in a car accident however the number of persons can vary. For auto shipping, the liability car coverage may or may not cover damages incurred in transit.

Many companies do cover auto transport as well under liability insurance. However, you need to call your insurance provider or read the fine print to understand the details. 

Broker’s Insurance 

Typically, the broker doesn’t need to be involved in the insurance process as the responsibility lies with the carrier. In case of any damages, the transporter company is liable to pay the damages to you directly. However, many authentic auto transport companies, including Planet Auto Transport, use supplemental insurance to provide an extra layer of coverage to your vehicle when shipped. 

Cargo truck with farmland in the background.

Cargo Insurance

Cargo insurance also known as carrier insurance covers your vehicle when transported. It typically covers damages, theft, vandalism, and human and animal harm. Carrier insurance can vary considerably from company to company, and it is always a good idea to research your options. 

The best car insurance for full coverage should also include force majeure events such as natural disasters, pandemics, and wars. Moreover, a comprehensive plan should cover the transport from the drop-off to the pick-up including car loading/unloading. These plans can provide enhanced coverage that can help you recover damages from the shipping company. 

Car Insurance: What Does It Cover

Many insurance services provide coverage for damage, theft, vandalism, and harm to your vehicle. Cargo insurance provides an extra layer of coverage that liability coverage may not cover. However, with so many insurers out there with unique policies, coverage may differ from one to another. It is always recommended to read the fine print or call the insurance provider to understand their insurance coverage policy. 

Benefits of Car Transport Insurance 

Cars standing in line

There are several benefits of car transport insurance including: 

Being One Step Ahead With Insurance: Helpful Tips

You can never go wrong by being thorough before shipping your car. Here are several tips that will help you stay one step ahead with insurance. 

Inspect Insurance Certificate of Auto Transport Company

Once you have shortlisted several auto transport companies, make sure that they provide cargo insurance. You can ask them to provide a certificate of insurance to satisfy yourself and they are legally abided to do so. Another good idea is to call their insurance company and confirm details from them for more safety. 

Check Car Condition

It is important that you thoroughly check your vehicle for any signs of damage. This can include scratches, dents, broken lights, and damaged mirrors. You need to check thoroughly before signing off on your receipt because it is almost impossible to claim damages afterward. At Planet Auto Transport, we ensure that our customers are satisfied before signing off the bill of lading. 

Document Everything

There’s no such thing as too much proof so it’s a good idea to document everything in as much detail as possible. You should take ample pictures of your car before delivery to secure proof of its condition. Similarly, having everything in writing, from insurance details to vehicle state can help you immensely when filing a claim.  

Wrapping It Up 

Insurance plays an important role in protecting you from financial losses when your vehicle is in transit. It is important to understand the different types of insurance coverage available and decide accordingly. Always make sure to inspect your vehicle thoroughly when picking it up and file a claim if it is damaged.

Planet Auto Transport understands the importance of insurance coverage and provides comprehensive vehicle coverage insurance to its customers. With our customer-centric approach, we value our customer’s trust and only work with insured cargo partners. If you are looking for a reliable auto transport service, visit our website today:

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