Car Shipping Insurance: What It Covers, What It Costs & More

Car shipping insurance is an invaluable way to safeguard your vehicle during transport. Although damage during transit is rare, having insurance just in case can provide extra peace of mind.

It serves as an extra layer of protection in case something goes amiss during its transport, making it an excellent solution for moving, buying or selling a car, as well as anyone needing long distance transport of their vehicle. Before investing in it however, it’s integral that you understand exactly how this coverage operates before investing.

Level of Coverage

No matter if it is for yourself or another party, when choosing an auto transportation company there are numerous considerations. While most shippers take care to protect your car during transport, this document lays out how there remains the potential risk of damage during transit which necessitates purchasing car shipping insurance as an extra measure against financial loss.

Your budget and vehicle’s value will dictate your level of coverage; basic or comprehensive policies are available, with basic providing basic protection or comprehensive providing all costs related to transporting it. Your shipping method also plays a factor; for example if shipping an older car that’s worth less, less coverage might be required than when transporting luxury models.

Another imperative consideration when choosing a carrier is insurance coverage. Most companies carry both cargo and liability policies, so it’s vital that you check what coverage exist. Reputable shipping companies will readily share details of their coverage; otherwise it should raise red flags indicating you should look elsewhere.

An insurance package that provides protection for any personal belongings that you keep in your vehicle can also be beneficial. While it’s best to remove loose items prior to transporting your car, sometimes this isn’t feasible or possible; with good shipping companies providing documentation if anything goes amiss during transportation.

Brokers, on the other hand, are not legally required to offer insurance as an optional service to their clients; however, many still choose to do so as brokers provide middlemen services between customers and trucking companies – meaning they have less at stake if a customer cancels or experiences an accident during transport.


As soon as you are ready to ship your car, it is vitally important that you review a company’s insurance coverage prior to making a commitment. Be sure to find out exactly what is covered, how much of a deductible will apply and whether specialty items such as stereo systems will be included or excluded. Also inquire about their liability and cargo policies.

Most car shipping companies carry liability and cargo insurance policies to protect both parties involved, but to see the details you will need a copy of their policy in order to see all the specifics. If shipping an exotic or classic vehicle extra coverage may be needed in case there are damages during transport.

Before carriers pick up your car, they will require that you complete a Bill of Lading (BOL). This, as well as other auto transport insurance requirements, documents your cargo and includes information such as buyer number, lot/member number, member name and VIN numbers among other vital details. As the BOL serves as an agreement between customer and carrier, it’s imperative that all information provided on it is accurate.

At the drop-off location, a BOL will be checked to ensure the vehicle remains in the same condition it was picked up in. If any damages occur during transport, notify both parties immediately and file a claim with their insurance companies immediately. It’s advisable to conduct an extensive vehicle inspection upon receiving it and document any problems on its BOL as soon as possible – be sure to take photos if necessary for evidence purposes.

Though it is rare, car damage during transport should still be taken into consideration when selecting a transportation service provider. Choose one with a good reputation and response rate so they are available to answer questions and assist throughout the process. If not satisfied with their experience you can contact either Better Business Bureau or Department of Transportation and file a formal complaint against them.


Car shipping insurance provides an essential safeguard to protect both your vehicle and investment when transporting an expensive or exotic automobile. Any reputable transport provider should offer both enclosed and open transport with adequate auto insurance cover; for your own protection it may also be wise to get quotes from multiple providers and evaluate their terms before choosing one.

Most reputable car transport companies will gladly show you proof of insurance (source: Request information on coverage levels and dates; verify whether there is enough protection to cover the value of your car; any company unwilling to produce this evidence should raise red flags.

Before handing the vehicle over to the transport company driver, be prepared to present any documentation that may be needed for making a claim. This may include copies of your Bill of Lading (eBOL) as well as photos taken of any damage. In order to protect personal items during transit and ensure coverage by insurance policies other than theirs.

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