Yes, your car is insured while it ships. The coverage is the carrier’s cargo insurance, the policy held by the company whose truck hauls your car. It pays for transit damage. It does not pay for personal items in the car, damage that was already there, or mechanical failure. You do not buy separate insurance for a standard shipment.
- The carrier’s cargo policy covers your car on the truck. The broker does not insure it, and your own auto insurer usually does not while a commercial carrier has it.
- Personal items in the cabin or trunk are not covered. Take them out before pickup.
- Damage already marked on the bill of lading at pickup is excluded, so the pickup inspection matters.
- Note any new damage on the bill of lading before you sign at delivery.
- Federal rules give you at least 9 months to file against the carrier, but file right away.
- Check the carrier’s coverage before pickup, and photograph the car at both ends.
Who insures your car during shipping?
Three parties touch your shipment. Only one of them insures the car.
| Party | Role | Covers your car in transit? |
|---|---|---|
| The carrier | Owns the truck and hauls the car | Yes. Their cargo insurance is the coverage. |
| The broker | Arranges the shipment and assigns the carrier | No. The broker is not the policy holder. |
| Your auto insurer | Your personal policy | Usually not while a commercial carrier has the car. Call and ask. |
We use our network of vetted, licensed and insured carriers. We assign the carrier. Every shipment is approved and dispatched by the owner. If a damage claim comes up, it is filed against the carrier’s cargo policy, because the carrier had your car. Ask any company who your carrier is and to show you the carrier’s certificate of insurance. You can ask us the same.
What does car shipping cargo insurance cover?
- Transit damage. Dents, scratches and body damage caused during loading, hauling or unloading.
- Equipment damage. A strap that fails, a ramp incident, or damage from the trailer itself.
- Theft of the vehicle while it is in the carrier’s custody.
What does car shipping insurance not cover?
- Personal items in the car. Anything in the cabin or trunk rides uninsured. Our prep guide says to remove valuables before pickup.
- Pre-existing damage. Anything marked on the bill of lading at pickup is excluded. That is why that document matters.
- Acts of nature, in many policies. Hail, floods and falling debris vary by policy. Ask the carrier about it by name.
- Mechanical failure. If the transmission was failing before pickup, the trip did not cause it, and the policy will not pay for it.
- Damage found after you sign clean. A clean signed delivery receipt says the car arrived undamaged. A claim filed afterward is much harder to win.
What should I check before pickup?
- Get the carrier’s name and contact info. You should have them once the carrier is assigned. Ask your advisor if you do not.
- Look the carrier up on FMCSA.gov. The free lookup shows whether their authority is active and which insurer they have on file.
- Ask for the certificate of insurance. It shows the carrier’s name, the insurer, the effective and expiration dates, and a line for cargo coverage. A certificate showing only general liability may not cover the cars on the trailer.
- Read the dollar limit. Compare the cargo limit on the certificate with what your car is worth. A policy covers the whole load, not just your car. For a high-value car, an enclosed carrier is an option, and our classic car shipping guide covers valuable cars.
- Photograph the car. Take pictures of every side, inside and out, in daylight, before the driver loads it.
Why does the bill of lading matter for insurance?
Insurance pays claims. The bill of lading proves them. It is the condition report signed at pickup and again at delivery, and every damage claim comes down to the difference between the two. At pickup, confirm it lists all existing damage. At delivery, inspect the car in daylight and write any new damage on the bill of lading before you sign. No notation, no claim.
What are the steps to file a car shipping damage claim?
- Document it at delivery. Note the damage on the bill of lading and photograph it before the driver leaves.
- Tell the carrier and your advisor in writing the same day. Your advisor keeps you posted and walks you through the next step.
- File against the carrier’s cargo policy. Federal rules give you at least 9 months. File right away, while the photos and paperwork are fresh.
- Get repair estimates in writing and keep every document: bill of lading copies, photos, emails and estimates.
When does my own insurance matter?
Your own policy matters in two cases. First, anything the cargo policy leaves out, such as personal items or damage the carrier’s insurer refuses. Second, a car worth more than the carrier’s cargo limit. Call your insurer before pickup and ask two things: does the policy cover the car while a commercial carrier has it, and can you add a transit endorsement. Some policies include limited protection and many do not.
What should I ask a company about insurance before I book?
Ask: “What insurance covers my car during transport, and can I see the carrier’s certificate of insurance?” A good company answers with specifics. “It’s fully covered, don’t worry” is not an answer. If a truck with a lapsed policy has an accident with your car aboard, there may be no valid policy to claim against. That is why you look up the carrier before pickup.
Questions people ask
Do I need to buy extra insurance to ship my car?
For a standard vehicle, no. The carrier’s cargo insurance is the coverage. For a high-value or collector car, ask your own insurer about a transit endorsement if the car is worth more than the carrier’s cargo limit.
Does my personal auto insurance cover car transport?
Usually not while a commercial carrier has the car, though some policies include limited protection. Call your insurer before shipping and ask directly.
Are my personal items covered during shipping?
No. Cargo insurance covers the vehicle, not what is inside it. Anything left in the car rides at your own risk.
What does car shipping insurance cost?
For a standard shipment, nothing extra. The carrier’s cargo insurance is the carrier’s own policy, and there is no separate insurance to buy. Extra coverage for a very valuable car is something to ask your own insurer about.
How long do I have to file a damage claim?
Federal rules give you at least 9 months to file against the carrier. Do not wait. File right away, with photos and a copy of the bill of lading.
Who pays if my car is damaged, the broker or the carrier?
The claim is filed against the carrier’s cargo insurance, because the carrier had custody of the car. Your advisor keeps you posted and helps with the paperwork.
Call (800) 997-4181 or get a quote. No deposit. No upfront fees. No payment until pickup.
