What Insurance Coverage Do You Need for Car Shipping?

What Insurance Coverage Do You Need for Car Shipping?

When shipping your vehicle across the country, having the right insurance coverage is crucial. At American Car Transporters, we ensure our customers are fully informed about the insurance options available for car shipping.

The short answer is that you’ll want to have both the carrier’s insurance and your own personal auto insurance policy in place to ensure your vehicle is fully protected during transport.

The Carrier’s Insurance Coverage

Every reputable car shipping company, including American Car Transporters, is required to have a minimum level of insurance coverage for the vehicles they transport, mandated by the Federal Motor Carrier Safety Administration (FMCSA).

Minimum coverage includes:

  • Cargo Insurance: Covers any damage or loss to vehicles during transport. Minimum required is $50,000 per vehicle.
  • Liability Insurance: Protects the carrier in case of an accident causing injury or property damage to a third party. Minimum required is $750,000.

Carrier insurance protects the transport company and your vehicle during shipping, but you may still be responsible for deductibles or claim disputes.

Your Personal Auto Insurance Policy

Your personal auto insurance may also provide coverage during transport:

  • Comprehensive and Collision Coverage: May extend to your vehicle while in transit, covering damage up to your policy limits.
  • Liability Coverage: Could apply if the carrier’s insurance is insufficient for third-party damages during an accident.

Check with your insurance provider for specific coverage details, exclusions, or notification requirements.

Choosing the Right Insurance Coverage

Tips for ensuring proper protection:

  1. Review the Carrier’s Insurance: Confirm policy limits, coverage, and deductibles before booking.
  2. Understand Your Personal Policy: Discuss coverage, exclusions, and requirements with your insurance provider.
  3. Consider Additional Coverage: For high-value vehicles or added peace of mind, purchase additional cargo insurance or higher liability coverage.

How to File a Damage Claim

Steps to file a claim if damage occurs:

  1. Inspect the Vehicle: Document visible damage with photos and a written description upon delivery.
  2. Notify the Carrier: Report damage immediately and request a claim form.
  3. File the Claim: Submit the form with supporting documentation to the carrier.
  4. Follow Up: Communicate with both the carrier and your insurance provider to ensure timely processing.

Follow the specific procedures of your carrier and insurer, as processes may vary.

Protecting Your Vehicle During Car Shipping

Additional steps to safeguard your car:

  1. Prepare the Vehicle: Remove loose items, secure the battery, and clean the exterior.
  2. Take Photos: Document the condition of your vehicle before and after shipping.
  3. Choose a Reputable Company: Use a licensed and insured company like American Car Transporters to ensure experienced handling.

Conclusion

Having the right insurance coverage is essential for car shipping. By understanding the carrier’s insurance, your personal auto policy, and the claims process, you can ensure your vehicle is fully protected.

American Car Transporters is committed to safety, reliability, and customer satisfaction, providing peace of mind when shipping your vehicle nationwide. Get a free quote today and make your car shipping experience smooth and stress-free.