During transport, your car is covered by the carrier’s cargo insurance — the policy carried by the company whose truck is physically moving it. Federal rules require auto transporters to carry at least $100,000 in cargo coverage, and reputable carriers carry $250,000 or more per load. That coverage pays for damage caused during transit. It does not cover personal items in the car, pre-existing damage, or acts of nature in most policies. You don’t need to buy separate insurance for a standard shipment — you need to verify the coverage that’s supposed to be there.
That last part is where customers get hurt. When something goes wrong in this industry, it’s rarely because insurance didn’t exist as a concept. It’s because the specific truck hauling the car had a lapsed policy, liability-only coverage, or no valid authority at all. Verifying that coverage is a big part of why car shipping is safe when you book carefully. Here’s how the layers work and how to check them.
Who Insures Your Car During Shipping?
Three parties touch your shipment, and only one of them insures the car:
| Party | Role | Covers your car in transit? |
|---|---|---|
| The carrier | Owns the truck, physically hauls the car | Yes — their cargo insurance is the coverage |
| The broker | Matches your shipment to a carrier | No — but a good one verifies the carrier’s policy before dispatch |
| Your auto insurer | Your personal policy | Usually not during commercial transport — call and ask |
This is why “are you a broker or a carrier?” matters less than people think, and “who is your carrier and what’s their cargo coverage?” matters more. If a damage claim happens, it’s filed against the carrier’s cargo policy — not the broker, and not your personal insurer. A broker who vets carriers is your filter; the carrier’s policy is your protection. We verify active authority and cargo insurance on every carrier before dispatch, and you’re entitled to ask any company to show the same.
What Cargo Insurance Covers
- Transit damage: dents, scratches, and body damage caused during loading, hauling, or unloading.
- Equipment-related damage: a strap that fails, a ramp incident, damage from the trailer itself.
- Theft of the vehicle while in the carrier’s custody.
What It Doesn’t Cover
- Personal items in the car. Anything in the cabin or trunk rides uninsured. That’s why our prep guide says to remove valuables before pickup.
- Pre-existing damage. Anything marked on the Bill of Lading at pickup is excluded, which is exactly why that document matters.
- Acts of nature, in many policies. Hail, floods, falling debris — coverage varies by policy. Ask specifically.
- Mechanical failure. If the transmission was dying before pickup, transit didn’t kill it, and the policy won’t pay for it.
- Damage discovered after you sign clean. A clean signed delivery receipt says the car arrived undamaged. Claims filed afterward face a steep uphill fight.
How to Verify a Carrier’s Insurance in 3 Steps
- Get the carrier’s MC number. Your broker should give you the carrier’s name, MC number, and contact info at assignment. If they won’t, that’s your answer about the company.
- Look the carrier up on FMCSA.gov. The free SAFER lookup shows whether their authority is active and lists their insurance provider on file.
- Ask for the Certificate of Insurance (COI). A valid COI shows the carrier’s name, the insurer’s name, effective and expiration dates, and a specific line for cargo coverage. If the certificate shows only general liability, the cars on the trailer may not be covered at all.
Match the coverage to the car. A $100,000 cargo policy is fine for a $15,000 sedan on an open trailer — that policy covers the whole load, not just your car, but claims rarely involve every vehicle at once. A collector car on an enclosed trailer needs more: reputable enclosed carriers run $250,000–$500,000 per load, and for anything worth six figures you should see the certificate and read our classic car shipping guide on agreed-value coverage.
The Bill of Lading Is Half Your Coverage
Insurance pays claims; the Bill of Lading proves them. It’s the condition report signed at pickup and again at delivery, and every damage claim comes down to the difference between the two. Protect yourself at both ends: photograph the car before pickup, confirm the pickup BOL lists all existing damage, inspect in daylight at delivery, and note any new damage on the BOL before signing. No notation, no claim — that’s how it plays out in practice.
If Your Car Is Damaged: The Claim Process
- Document at delivery. Note the damage on the Bill of Lading and photograph it before the driver leaves.
- Notify the carrier and your broker in writing that day. We walk our customers through this step.
- File against the carrier’s cargo policy. Federal law gives you at least 9 months to file, but file immediately — fresh documentation wins claims.
- Get repair estimates in writing and keep every document: BOL copies, photos, correspondence, estimates.
Questions That Expose a Bad Operator
Before you book with anyone, ask: “What insurance covers my car during transport, and can I see the carrier’s COI?” A legitimate company answers with specifics. “It’s fully covered, don’t worry” is not an answer — it’s a red flag, and our car shipping scams guide shows where that conversation usually leads. Unlicensed operators with lapsed policies are one of the costliest failure modes in this industry: if an uninsured truck crashes with your car aboard, there may be no valid policy to claim against.
Frequently Asked Questions
Do I need to buy extra insurance to ship my car?
For a standard vehicle, no. The carrier’s cargo insurance is the coverage, and federal rules require at least $100,000 of it. For high-value or collector cars, ask your own insurer about a transit endorsement or supplemental coverage if the car’s value exceeds the carrier’s cargo limit.
Does my personal auto insurance cover transport?
Usually not while the car is in a commercial carrier’s custody, 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 its contents. Anything left in the car rides at your own risk.
What’s the minimum insurance a car shipper must have?
Auto transport carriers must carry at least $100,000 in cargo insurance, and many reputable carriers hold $250,000 or more. You can confirm a carrier’s insurance on file through the free FMCSA lookup.
How long do I have to file a damage claim?
Federal law sets a minimum window of 9 months to file against the carrier’s cargo policy. Don’t use it — file immediately, while photos and paperwork are fresh.
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 vehicle. The broker’s job is to have verified that the policy was active before your car was loaded.
Get Your Quote
We’re an FMCSA-licensed and bonded broker, and every carrier we assign is verified for active authority and cargo insurance before your car is loaded. Ask us for the carrier’s COI — we’ll show you.
Or call us at (800) 997-4181. No commitment to book.
