What to Know About Insurance Options for Car Shipments

If you need to ship your car to a new destination, ensuring it has proper protection throughout the journey is just as important as selecting the right auto transport company. While most reputable car shipping companies include some level of coverage in their services, understanding your insurance options for car shipments can save you from unexpected expenses and provide peace of mind during transit.

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Types of Auto Transport Insurance Coverage

When shipping your vehicle, you’ll encounter various types of insurance options, each offering different levels of protection. Understanding these options helps you select the most appropriate coverage for your specific situation, based on factors such as your vehicle’s value, the shipping route, and your personal risk tolerance.

Federal Motor Carrier Safety Administration (FMCSA) Requirements

The Federal Motor Carrier Safety Administration (FMCSA) establishes and enforces specific insurance requirements for all auto transport companies operating in the United States. These regulations are designed to protect consumers and ensure that carriers maintain adequate insurance coverage for the vehicles they transport.

According to FMCSA regulations, auto transport carriers must maintain a minimum level of public liability insurance, which includes both bodily injury and property damage coverage. For most auto transporters, the minimum required coverage is $750,000, though carriers transporting hazardous materials may need to maintain higher coverage amounts. When selecting an auto transport company, verifying their FMCSA compliance is an essential step in ensuring your vehicle’s protection.

Standard Liability Coverage

Standard liability coverage forms the foundation of auto transport insurance and is included in the service provided by reputable car shipping companies. This coverage protects your vehicle against damages that occur due to the carrier’s negligence during the transportation process, with coverage limits typically ranging from $50,000 to $1,000,000 per vehicle.

Standard liability coverage usually doesn’t extend to damages caused by “acts of God,” such as severe weather events, natural disasters, or other circumstances beyond the carrier’s control. Additionally, pre-existing damage, mechanical or electrical failures during transit, and personal items left in the vehicle are typically excluded from standard liability coverage.

Gap Insurance

Gap insurance plays a valuable role when shipping a vehicle that you’re still making payments on. This specialized insurance covers the “gap” between what you owe on your auto loan and what your vehicle is actually worth in the event of a total loss during shipping. Without gap insurance, you might find yourself responsible for paying the difference between your insurance payout and your remaining loan balance if your vehicle is severely damaged or declared a total loss during transport.

Gap insurance can be particularly important for newer vehicles that depreciate quickly. These vehicles often lose value faster than loan balances decrease, creating a potential financial liability if something happens during shipping. Gap insurance eliminates this risk by covering the difference, ensuring you’re not left with payments on a vehicle you no longer have.

When considering gap insurance for your auto shipment, check whether your existing auto insurance policy already includes this coverage. Many comprehensive car insurance policies include gap insurance or offer it as an affordable add-on.

Supplemental Car Shipping Insurance Options

Comprehensive coverage is one of the most common supplemental insurance options. It covers a wider range of potential damages, including those from natural disasters, vandalism, and theft. This insurance often has higher limits than standard liability coverage and fewer exclusions, making it suitable for protecting valuable vehicles during transport. Some carriers offer tiered supplemental insurance options with varying coverage limits, allowing you to select the level of protection that best matches your vehicle’s value.

Custom supplemental insurance policies may be available for specialized vehicles such as classic cars, exotic vehicles, or those with extensive modifications. These policies can be tailored to address the unique characteristics and value of your vehicle, ensuring adequate protection for its specific features.

How to Choose the Right Vehicle Shipping Insurance

Selecting the right insurance coverage for your vehicle shipment requires thoughtful consideration of several factors, including your vehicle’s value and the potential risks associated with its transport route. The ideal coverage provides adequate protection without unnecessary extras, balancing cost with peace of mind.

Consulting with your auto transport provider about their recommended insurance options can provide valuable insights. Reputable companies have extensive experience with various vehicle types and transport routes, allowing them to offer informed recommendations based on your specific situation. Their expertise can help you navigate the available options and select coverage that appropriately balances protection and cost.

Assessing Your Vehicle’s Value and Coverage Needs

Accurately assessing your vehicle’s value is the first step in determining appropriate insurance coverage for shipping. Insurance coverage should be based on your vehicle’s current market value — what it would cost to replace it with a similar vehicle in comparable condition. For standard vehicles, resources like Kelley Blue Book or NADA Guides can provide reliable value estimates.

Your vehicle’s condition, age, and rarity should also influence your coverage decisions. Newer, more valuable vehicles generally warrant more comprehensive coverage, while older vehicles with lower replacement costs might be adequately protected by standard liability coverage. Similarly, rare or difficult-to-replace vehicles might benefit from specialized coverage that addresses their unique characteristics and value.

Reading and Understanding Insurance Policy Terms

Understanding the specific terms of your auto transport insurance policy will help you make informed coverage decisions. Pay particular attention to coverage limits, deductibles, exclusions, and the claims process outlined in the policy. These elements define the practical value of your insurance coverage and could significantly impact your experience if you need to file a claim.

Exclusions are equally important to understand, as they define circumstances or types of damage not covered by the policy. Common exclusions in auto transport insurance include pre-existing damage, mechanical failures unrelated to transport, personal items left in the vehicle, and in some cases, damages from severe weather or natural disasters. Reviewing these exclusions carefully helps you identify potential gaps in coverage and determine whether supplemental insurance might be necessary.

Tips for Filing Auto Transport Insurance Claims

If your vehicle sustains damage during shipping, following the proper procedures can significantly impact the success of your insurance claim. Here are essential tips for handling auto transport insurance claims effectively:

• Document your vehicle’s condition thoroughly before shipping with dated photographs from multiple angles, paying special attention to any pre-existing damage.
• Review the Bill of Lading carefully at both pickup and delivery, noting any discrepancies in the vehicle’s condition and ensuring all damage is properly documented.
• Report any damages immediately upon delivery, ideally before signing the final delivery documents, as delays in reporting can complicate the claims process.
• Collect all relevant documentation, including the Bill of Lading, inspection reports, photographs of damage, and any correspondence with the carrier regarding the damage.
• Follow the specific claim filing procedures outlined in your insurance policy, submitting all required documentation within the specified timeframe.
• Maintain detailed records of all communications related to your claim, including dates, names of representatives, and summaries of discussions.
• Be patient but persistent throughout the claims process, following up regularly on the status of your claim while respecting the time needed for proper investigation.

Ship Your Vehicle with Peace of Mind with RoadRunner

At RoadRunner Auto Transport, we prioritize the safe delivery of your vehicle with comprehensive insurance options designed to provide complete peace of mind throughout the shipping process. Our basic liability coverage exceeds industry standards, and we offer customizable supplemental insurance options to meet the specific needs of every vehicle and owner. With over 30 years of experience in nationwide vehicle shipping and more than 450,000 vehicles safely delivered, our team of transport professionals understands the importance of proper protection during transit.

Ready to ship your vehicle with confidence? Use our car shipping cost calculator to generate a free instant quote.

FAQ

What insurance is typically included in the cost of shipping a vehicle?

Standard carrier liability insurance is included in the cost of shipping with reputable auto transport companies. This coverage protects against damages that occur due to the carrier’s negligence during transport, though coverage limits and specific terms vary between providers. For most standard vehicles and routes, this included insurance provides adequate basic protection during shipping.

How do I determine if I need additional insurance options for my car shipment?

Consider your vehicle’s current market value, any financing obligations, the shipping route, and your personal risk tolerance. Additional insurance is often recommended for high-value vehicles, classic or exotic cars, vehicles with extensive modifications, or when shipping through areas with challenging weather conditions. If your vehicle’s value exceeds the carrier’s liability limits or you’re concerned about specific risks, supplemental insurance provides additional protection and peace of mind.

Can I use my personal auto insurance during vehicle shipping instead of purchasing additional coverage?

Some personal auto insurance policies provide coverage during professional transport, but this varies significantly between insurers and policies. Contact your insurance provider to verify whether your existing policy covers professional vehicle shipping and what limitations might apply. Even with personal insurance coverage, the carrier’s liability insurance remains in effect, potentially providing additional protection depending on the circumstances of any damage.

What documentation do I need for insurance purposes when shipping my vehicle?

For insurance purposes, thoroughly document your vehicle’s condition before shipping with detailed photographs from multiple angles. Ensure all pre-existing damage is noted on the Bill of Lading at pickup, and carefully review this document before signing. At delivery, conduct a thorough inspection and document any new damage immediately. Keep copies of all shipping documents, inspection reports, and communications with the carrier, as these will be essential if you need to file an insurance claim.

1. Is your company licensed and registered?

   To ensure that you are dealing with a company that you can trust to get your car from Point A to Point B, you need to check to see that the company has all the necessary licenses. Any company that transports vehicles is required to register through the U.S. Department of Transportation.

   You can ask a representative for the U.S. DOT# for verification purposes. By obtaining this information, not only can you ensure that the company is licensed, but you can use it to view safety reports and such.

2. What are your rates?

   You work hard to earn your money. Therefore, you want to ensure that you aren’t just throwing it away on a company that makes false promises. A reputable auto shipper should be upfront about how much it costs to use their services. Car transport rates vary depending on the situation, so you need to contact the auto transport company directly for a quote.

   While everyone prefers affordable services, it is important to keep in mind that price is not everything. If you choose to go with the cheapest option you can find, you may come to realize that you get what you pay for. Instead, choose a company that offers highly quality services.

3. Do you offer a free no-obligation quote?

   Most auto transport companies offer free car shipping quotes on their website. If they don’t, this could be a big red flag and a sign to look elsewhere. Why wouldn’t a company want to offer a future customer a complimentary quote?

   Here, at National Dispatch, we offer both a free and instant car shipping quote. Plus, our online quote form requires absolutely no personal information. Therefore, our car shipping quotes our 100% no obligation, and it only takes a few seconds to get one.

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4. Do your quotes include everything?

   This is very important. There is nothing worse than unexpected costs and charges. This can easily be avoided by asking the auto transport company for a list of everything that the quote covers. Ask the company, ahead of time, if there will be any additional costs to avoid the headache.

   Before you sign the contract, make sure you read everything over and understand everything clearly. Make sure that the charges are what you agreed upon. If there are any additional costs or penalties, make sure that you inquire about them right away.

5. Why are you the best company to go with?

   There are thousands of auto transport companies to choose from. Although they may all serve the same industry, not all of them are alike. Every auto transport company should be able to tell you what makes them special. What sets them apart from the competition?

   You should aim to ship with a company that has an impressive track record of getting cars to their destination in a safe and timely manner. If you want to find out what past customers are saying about their experiences, read reviews from a trustworthy source.

6. Will the vehicle be insured?

   Insurance is important when it comes to transporting a car. Before hiring an auto transport company, you should ask what is and is not covered and included in the cost of your car shipping quote. You want to be sure that you are covered during the transport of your vehicle.

   If an auto transporter does not offer the coverage you are looking for, this could be a major deal breaker. You will likely not want to take the risks of being responsible for any damages, if any were to occur.

7. Do you have references that I can speak to?

   You do some research on your own to read online reviews and testimonials. However, ratings can be manipulated. Ask the auto transporter if there are any past customers that you can contact. This is one way to ensure that you are getting an honest review.

8. How can I pay?

   It is not uncommon for an auto transport company to require some payment, in the form of a deposit, prior to pickup. In fact, this is the policy for most companies. If they require that you pay all the money up-front, then this may be a sign for alarm.

   When it comes to payment methods, companies may differ. At National Dispatch, we accept a variety of payment methods, including all major credit cards.

9. What are my shipping timeframe options?

   You are probably wondering about your delivery options. Most auto transport companies offer several different options, depending on your schedule and budget. In general, you want to book car shipping services in advance to ensure that you get what you need and give the company enough heads up.

   At National Dispatch, we offer 3 shipping options, ranging in price from least expensive to a little pricier. We have economy shipping, priority shipping, and guaranteed shipping. Priority shipping is the standard method of shipping, while guaranteed is recommended for those in more of a hurry.

10. How are your rates calculated?

    You will likely want to know how much it costs to ship your car from one part of the country to another and what goes into determining that price. Auto transport costs are determined by a variety of factors, including the type of vehicle, distance from the pickup to the delivery location, and the specific shipping options you choose.

    To learn more about how rates are calculated, read Car Transport Rates: Explaining It All.

11. How do I need to prepare my car for shipping?

    Before shipping, you will likely need to complete some steps to prepare your car for transport. What does this entail? You will need to give your car a thorough cleaning, remove all personal items from the car, and ensure that the tank is 1/4 full.

    Check with the auto shipping company for any additional recommendations that they may have. Also, read our Preparing Your Car For Shipping In 10 Easy Steps.

12. When will my car be delivered?

    Another common question you might have is regarding the length of time delivery takes. As we mentioned before, there are several different shipping methods to choose from. Therefore, delivery time will vary depending on which method you choose and how far away the driver must travel to deliver the vehicle.

13. What documentation do I need to supply in order to ship my car?

    It is crucial that you are prepared for auto shipping with the appropriate documents. This will ensure that the auto transport process goes smoothly from start to finish. This can also help to prevent any delays.

    Ask the auto transporter, in advance, what type of paperwork is needed. Typically, you will be need to provide the auto shipper with the registration and title, along with proof of insurance and photo identification.

14. Do I have to be available for pickup and delivery?

    Most auto transport companies require that someone (over the age of 18) be present at the time of pickup and delivery. This is because keys must be collected, important paperwork must be signed, and an inspection report must be completed.

    It is important to be respectful of the auto transporter’s time. If you cannot be present for the pickup or delivery of your vehicle, make sure you stress to your friend, neighbor, or family member the importance of being there on time.

15. How will my car be transported?

    When it comes to shipping a car, there are two primary methods that you can choose from: open or enclosed carrier shipping. Each auto transport method has their own advantages and disadvantages. Therefore, it is up to you to decide which option offers the best investment.

    While open auto transport is more economical and is the standard in the industry, it does not protect your car from an array of external elements. Enclosed auto transport is the better option if this is a concern. However, it is more costly in comparison to open auto shipping.

16. Can you move my personal belongings?

    Although it would be much more convenient to have your auto shipper transport your household goods along with your vehicle, most companies do not allow this. It is recommended that you remove all personal items from the vehicle. However, you can leave your car’s spare tire and jack.

    Failure to remove these items could result in added fees or delays, and nobody wants that. There is also the possibility that these items could become damaged or could cause damage to the interior of your vehicle. To avoid this, empty your car before auto transport.

17. Can you transport non-running cars?

    It is important to know what the car shipping company you are looking at hiring specializes in. What can and can’t they do? Most auto transport companies can ship the typical cars, trucks, and SUVs. What about cars that do not run?

    Inoperable cars present more of a challenge, because these vehicles require special equipment for loading and unloading purposes. National Dispatch has the means necessary to transport your car, regardless if it runs or not. Just be sure that you provide this information to the auto transporter when you place your order, so all the appropriate preparations can be made.

18. Where are you located?

    This question may not seem to hold much significance, but by asking it, you gain some insight into whether or not the company has a physical address or not. You might even come to learn that the company is located not too far from where you are located.

    National Dispatch’s headquarters is in Cocoa Beach, Florida. However, we are a nationwide car shipping company. This means that we can ship your car anywhere you need it to go within the United States.

19. Is door to door shipping available?

    One of the primary reasons why people choose to ship their car is because it is easier and more convenient than the alternative — driving. If you are looking for an auto transport service that makes your life simpler, ask your auto shipper about door to door shipping.

    Door to door shipping is a hassle-free auto shipping service that can save you a lot of time. Instead of dropping your car off at a terminal, the driver will come directly to your home for pickup and delivery.

    Want more information on Transport Car Covers? Feel free to contact us.