If you are moving across the country, purchasing a car from another state, or attending a car show, sometimes driving is not an option. Therefore, you must rely on auto shipping to safely get your car where it needs to go. For most people, their car is one of their most valuable assets, so it only makes sense that they would want to protect it. Although damage during auto shipping is unlikely, there is still the possibility that something could happen while your vehicle is in transit. Things like weather, falling branches, and road debris always pose a slight risk. This is why it is important to inquire about insurance when shipping your car. Shipping insurance can help provide peace of mind during the shipment process. If you are preparing to ship your car in the near future, here are some important things to consider regarding car shipping insurance.
What Insurance is Provided by Shipping Companies?
Auto transport companies are required to provide basic liability coverage. This policy typically covers damage to your vehicle that occurs during loading, transport, or unloading. Everything else, including any damage that is a result of your car’s condition prior to shipment (e.g, leaking oil, loose parts, etc.) is your responsibility. While basic liability insurance is required, the terms and amount of the coverage will depend on the particular auto transport company and the minimum requirements for that state. That is why it is important to inquire about the details of the insurance coverage prior to booking your shipment.
How Much Coverage is Enough?
Again, auto shipping companies are required to have coverage, but the exact amount of the policy varies by company. Therefore, you need to inquire about the specific policy to decide whether or not it is adequate for your vehicle. You may come to find that the coverage does not meet your expectations in covering the true value of your car. This can be especially true if you are shipping a luxury or antique car. If the company does not offer the coverage you need, you may need to choose a different shipping company or look into adding additional coverage on your own. In addition to checking with your car shipping company, you should also contact your own auto insurance provider. Depending on your policy, your car may be covered during auto transport.
Although auto transporters are legally responsible for carrying liability insurance per the United States Department of Transportation, there are unfortunately frauds out there. Always ask for proof of insurance as well as a detailed explanation of the policy coverage prior to shipping your car. At this point, it is up to you to determine whether or not additional coverage will be necessary.