Auto Transport Insurance
Car shipping insurance is a primary concern when hiring an auto shipping company, as it will ensure that you are fully protected should your vehicle be damaged during shipment. In the event that there is an incident, your insurance will be able to get the appropriate repairs made.
The Truth About Car Shipping Insurance
Many people are under the false impression that their regular car insurance will cover them during car shipping, but in actual fact this is not true. Your regular insurance covers you when you are on the road driving, or your vehicle is parked somewhere, but it does not cover unusual circumstances like shipping.
The Federal Motor Carrier Safety Administration and other federal legislation require that all auto transporters carry a minimal level of shipping insurance. However, if your car is particularly valuable, the minimal level may simply not be enough. It is also important that you read the fine print, as some insurance policies may not cover everything you need them to. If the option is available, consider purchasing additional insurance from the shipper, or, better yet, buy a plan from your current car insurance company that completely covers your vehicle during shipping.
Items that are not commonly covered by transport insurance:
- The undercarriage of a vehicle.
- Items left inside a vehicle.
- Aftermarket parts and decorative features, such as spoilers and car stereos.
Obtaining quality auto shipping insurance is just half the battle. Filing a claim for damages is pointless without a properly filled out bill of lading for both pick-up and delivery. Be as exhaustive as possible when describing the condition of your vehicle both before and after shipping. It is highly recommended that you take pictures or video of your vehicle as well. Damage claims that are not specified in a bill of lading will be disputed by the shipper.
Finally, take care when working with smaller auto transporters. Some simply do not carry the legal amount of auto transport insurance, or any at all for that matter. Since pursuing legal action against small companies with few assets is often more expensive than it’s worth, it’s best not to work with these individuals at all if you suspect not everything is on the up-and-up.
Car shipping insurance, though seldom used, is an essential part of booking a car transport service. Take the time to purchase insurance that fits your individual needs to feel safer about your move.