What happens if my car is damaged during shipping?
You document the damage on the Bill of Lading before signing, photograph everything, and file a claim against the carrier’s cargo insurance — which every licensed carrier must hold, with a federal minimum of $100,000 in coverage. Federal law gives you at least nine months to file, but file immediately. The one mistake that sinks claims: signing a clean delivery receipt when the car isn’t clean.
Damage claims are rare, but the process only works if you set it up correctly at pickup and delivery. Here’s the sequence.
At pickup: build your evidence before anything happens
- Walk around the car with the driver. Both of you sign the Bill of Lading noting any existing damage — scratches, dings, chips, all of it. Keep your copy.
- Take dated photos of every panel, the roof, the wheels, and the interior. This is your baseline. A claim is a comparison, and you can’t compare against nothing.
At delivery: the five minutes that decide your claim
- Inspect the car against the pickup Bill of Lading before you sign anything. In daylight if possible. Check every panel you photographed.
- Found damage? Note it on the Bill of Lading delivery section before the driver leaves, and photograph it immediately.
- Do not sign a clean delivery receipt if the car isn’t clean. A clean signature is you certifying the car arrived fine. It makes every later claim an uphill argument.
Filing the claim
The claim goes to the carrier’s cargo insurance — not the broker’s. Federal minimum cargo coverage is $100,000, and many reputable carriers hold $250,000 or more. Federal law sets a nine-month minimum window to file, but do it right away while the documentation is fresh. Submit your photos, both Bill of Lading copies, and the repair estimate.
This is also why carrier vetting matters before you book. Ask for the carrier’s Certificate of Insurance and confirm it shows cargo coverage specifically — a COI showing only general liability may not cover your car at all. The verification steps are in our car shipping scams guide. For high-value vehicles, coverage should scale up: enclosed carriers moving vehicles worth over $100,000 should hold $500,000–$1,000,000 in cargo coverage. See enclosed auto transport and classic car shipping for how that works.
How to make a claim unnecessary
Book with a broker who checks the carrier’s authority and insurance before dispatch. An unlicensed carrier without valid cargo coverage means there’s no policy to claim against — the worst-case scenario, and an avoidable one. At Allied, no carrier is dispatched without an active MC number and current cargo insurance on file.
Frequently asked questions
How common is damage in auto transport?
Rare. Open transport is how dealers move new cars across the country every day, and the main exposure is road debris and weather, not negligence. The documentation process exists for the exception, not the rule.
What if I already signed a clean Bill of Lading?
Claims become much harder, because your signature says the car arrived undamaged. Contact the carrier’s insurer immediately with your pickup photos and any evidence with timestamps. This is exactly why the delivery inspection happens before the signature.
Does the broker’s insurance cover my car?
No — the carrier’s cargo insurance does. The broker arranges the shipment; the carrier hauls the car and carries the coverage. That’s why you should get the assigned carrier’s name, MC number, and insurance details before pickup. You have a right to that information.
Are personal items in the car covered?
No. Cargo insurance covers the vehicle, not the contents. Anything left in the car rides at your own risk.
Ship with a vetted carrier
We’re an FMCSA-licensed and bonded broker. Every carrier is verified for active authority and current cargo insurance before dispatch — and if damage ever happens, we walk you through the claim.
Or call us at (800) 997-4181.
