Insurance for transporting cars

All You Need to Know about Insurance for Transporting Cars

When it comes to vehicle shipping, car transport insurance is one of the most important issues to take into account. This is the guarantee for safety and appropriate compensation in case of any possible damage. All shipping companies must provide standard liability coverage. However, it may not be sufficient for your situation. So you should always have an opportunity to take additional car transporter insurance for extra money. It’s a good idea to clear up in advance what exactly the car transporting insurance include in order not to regret afterwards.

There are also some other important pitfalls related to car insurance for transporting clients should be aware of. Read on to know more and be information-savvy in this matter.

Types of insurance for transporting cars  

In general, there are three types of car transport insurance, i.e. PAI (personal auto insurance), liability coverage by the carrier, and supplemental coverage by the broker.

PAI usually doesn’t include vehicle transport, but you can purchase it additionally. While PAI and supplementary coverage are optional for shipping, liability coverage by the carrier is a must. The carrier must provide you with at least basic insurance which will cover damage caused to your vehicle during shipping. As for the broker, you may be offered to purchase extra coverage for some particular cases, but you are not obliged to accept it.

Single car transporter insurance: a few words about terminology

In order to better understand the peculiarities of any car transport insurance company, you should know what the following terminology mean: 

  • Carrier - this is a company that is directly involved in the transportation of your car from point A to point B.

  • Broker - this is a company that connects you to the carrier, kind of mediator. Brokers do not actually move your vehicle. 

  • Supplemental coverage - type of insurance which is optional or facultative. This means that you can do without it, since it’s just an additional service.

  • Shipping license - a license that any carrier should obtain in order to transport vehicles. Transporting cars without obtaining a license is illegal.

  • Motor Carrier (MC) number - a registration number issued by the Federal Motor Carrier Safety Administration which proves that the shipper has the right to work and transport cars across the states.

  • U.S. Department of Transportation (USDOT) number - a registration number issued by the Federal Motor Carrier Safety Administration which works as an identifier and helps to track the shipper’s safety records.

How does car transport insurance work?    

One of the questions about insurance, be it race car transport insurance or classic car transport insurance, that most people want to know the answer to is ‘What exactly does it cover?’

As a rule, the basic car transport insurance cost includes covering any damage caused to your vehicle during the actual shipping, as well as during the loading/unloading. Any other kind of damage is out of the car transport insurance company’s responsibility. However, you’d better get in touch with the shipper and clear up in advance whether their insurance covers damage caused during the pickup and drop off.     

Points to pay special attention to: 

  1. Make sure you know what the difference between a broker and a carrier is. This will help you understand how the car transport insurance cost is formed. Ask the company to state whether they work as a broker or as a carrier. If they don’t provide you with a definite answer, you’d better keep away from them. Bear in mind that brokers are not the companies that actually move your vehicle, they are only mediators between you and the carrier. 

  2. Check the condition of your vehicle carefully before signing the bill of lading. When you get your car upon the delivery don’t hurry to accept the shipping. Examine the vehicle for damage thoroughly in order not to miss anything. You will hardly be able to claim any damage and get coverage after signing the bill of lading. It’s a good idea to work with companies that have favourable car insurance for transporting clients terms. For example, AmeriFreight is ready to provide you with 48 hours to claim damage. 

  3. Watch out for scammers. There are a lot of fake companies. Therefore, even if the company has placed its USDOT and MC numbers on its official website, do not be lazy to check their authenticity on the Federal Motor Carrier Safety Administration website. 

  4. Pay attention to the way transactions are made. Reputable companies never ask for deposit payments. Don’t pay anything until you are assigned a carrier and you know exactly who your driver will be. Be aware of extra fees, clear up beforehand what your shipping quote includes in order not to get disappointed later.  

  5. Take time to read reviews online. Pay attention to what people say about car transporter insurance, service quality, pricing policy, etc. Study the company’s website, see what their car transporting insurance conditions are. 

  6. If you have any questions, hesitations and doubts, don’t be afraid to contact the managing team directly and ask questions that disturb you.   

Single car transporter insurance FAQ

Is there any difference between race car transport insurance and standard sedan insurance?

There may be some differences between race car transport insurance and standard sedan insurance, since the vehicles differ in their specifics and price.

Can I be sure that the driver will handle my vehicle with maximum attention and care? 

When the company provides you with insurance for transporting cars, this means that they are ready to bear responsibility for the safety of your car, and that they are ready to compensate for any damage that is included in the coverage. The driver will do his utmost to minimize the risk of damage, since he has certain liability relations with the company as well.

Is car transport insurance higher for trucks than for small-sized vehicles?  

The cost for car transporter insurance depends on several variables, and the size of the vehicle is one of the factors that may influence the car transport insurance cost.

Do I need special classic car transport insurance?

Classic cars cost more, and they need more attention and care during the transportation. We recommend shipping these types of vehicles on enclosed trailers. As a rule, enclosed shipping has a more comprehensive car transporter insurance, since it provides better protection to your vehicle during the transportation.  

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