Insurance for car shipping: What You Should Know

Whether you’re relocating, heading south for winter, or buying a car from across the country, auto transport is an easy way to get your vehicle from point A to B. Make sure the company you choose has insurance.

A reputable company should be more than happy to provide proof of insurance. It’s a red flag if they hesitate to give you this information.

Bill of Lading

The car shipping company will give you a copy of this document when they pick up your vehicle. Make sure you compare your car’s condition against it and note any damage. It will help you if you ever need to file an insurance claim.

Most car shipping insurance policies include both liability and cargo coverage. The liability coverage will cover any damage that is caused during transportation. The cargo coverage will cover any damages not covered by the liability coverage.

A bill of lading (also known as a BOL) is an essential commercial document issued by a carrier that acknowledges cargo receipt for the shipment. It is a negotiable document that can be transferred by endorsement and delivery. There are different types of bills of lading, depending on how they are used.

Before your car is shipped, remove any loose items inside it. It will reduce the risk of theft and minimize any potential damages. Many car shipping companies will not cover anything missing during transport. You should also check your car’s manufacturer warranty and homeowner’s policy to see what is covered. You may need additional insurance if your vehicle has expensive accessories like speakers or custom paint.

Cargo Insurance

Cargo insurance, also known as freight insurance or marine cargo insurance, is a type of property insurance that covers losses to your cargo while it is in transit. Its primary purpose is to protect shippers and carriers from heavy financial loss when shipments are lost, damaged, or stolen. It is because various laws limiting the liability of pages such as airlines, railroads, or shipowners leave them with only small payouts in cases of losses. Cargo insurance helps compensate them for their financial loss and allows them to continue operations even after such incidents.

This type of policy is available for all modes of transportation, including sea, land, and air. Different approaches are based on your needs and the value of your goods. For instance, some policies can be customized for your specific requirements, such as an open policy appropriate for businesses that ship frequently or on a large scale. A single coverage policy, on the other hand, is ideal for a low-volume or infrequent shipper.

However, you should note that a cargo insurance policy doesn’t cover all possible losses. It might not cover damage caused by poor shipping packaging or faulty products in the cargo. Additionally, remember that to receive complete coverage, you must declare the actual value of your shipment. You must be more accurate in determining your freight to avoid underpayment of claims which may result in additional costs for you or the carrier.

Liability Insurance

A reliable car transporter will have insurance coverage that protects your vehicle during shipment. Make sure to ask about the policy and what it covers. It includes damages that occur during loading, unloading, and transit. These are minor scratches and dents, but sometimes they can be more serious. In any case, a reputable auto transport company should resolve the issue quickly and efficiently.

You also want to find out if your carrier has liability insurance, which protects you if something goes wrong with your vehicle while it is transported. It is essential for both open and enclosed transport. It’s important to note that carriers must have this type of insurance, while brokers don’t necessarily have it.

If a broker does have liability insurance, then they will be able to reimburse you if your car is damaged during transportation. They may have a low deductible or none, so it’s essential to inquire about this.

Choosing one with liability and cargo insurance is best for an auto transporter. It will provide you with maximum protection and peace of mind. Additionally, a reputable auto transporter should provide you with proof of insurance so that you can verify their credentials. They should also have an MC, or motor carrier, number and a USDOT, or department of transportation, number, which allows you to track your vehicle’s progress.

Inspecting Your Vehicle

A reputable auto shipping company will happily provide you with their insurance information (sometimes included in the overall rate, other times at an extra cost). If your car transport service refuses or hesitates to give you this information, it’s likely time to find another company.

Most carriers have cargo insurance covering damage during loading and unloading your vehicle and transit between pick-up and drop-off locations. You may also have coverage under your auto insurance policy, though it will depend on your policy and insurer. It’s always best to contact your insurer directly to learn more.

Regardless of the insurance that your transport company offers, it is crucial that you inspect your vehicle before and after it’s been picked up by the carrier. During the inspection, you and your driver should thoroughly report any pre-existing damages or scratches to ensure the claims process is as smooth as possible.

Checking the USDOT number of the transportation provider you are utilizing is also a good idea because it might reveal whether the provider is a broker or a carrier. Carriers have trucks and ship cars directly from their facilities, while brokers act as middlemen by connecting customers with carriers who transport vehicles to their destinations. Brokers aren’t required to have insurance, but they can offer supplemental insurance to attract customers.