If you’re planning to ship your vehicle across the country or just a few states over, one of the first questions that may come to mind is: Does car transport include insurance? The short answer is yes—but the full story involves more detail than most people realize.
Understanding how insurance works in auto transport is essential to ensuring your vehicle is protected from pickup to drop-off.
This practical guide walks you through what is usually covered, what isn’t, how to verify coverage, and how to choose the safest car transport service. Plus, you’ll learn how Automobile Shipping makes protection a priority with transparent policies and dependable carriers.
Understanding What Insurance is Included
By law, all legitimate car transport companies in the U.S. are required to carry liability and cargo insurance. This means your vehicle is insured while it’s in the care of the transporter—but that doesn’t mean you’re covered for everything.
Here’s a breakdown of what’s usually included:
- Liability insurance: Covers damage caused by the driver to other vehicles or property—not necessarily damage to your car.
- Cargo insurance: This is what matters most to you. It covers physical damage to your vehicle during transport, including accidents, theft, fire, or vandalism.
However, coverage limits and exclusions can vary significantly between companies. Some may cover up to \$50,000, while others go up to \$250,000 or more, depending on the transporter and the type of trailer used (open vs. enclosed).
At Automobile Shipping, every shipment includes cargo insurance with generous limits and vetted carriers to ensure customer peace of mind.
What Car Transport Insurance Typically Doesn’t Cover
Now that you know what’s generally included, it’s just as important to understand what may not be covered by standard car transport insurance.
Common exclusions include:
- Personal items inside the vehicle: Transporters are not liable for any belongings left inside your car. Always empty the vehicle before shipping.
- Pre-existing damage: Scratches or dents that existed prior to pickup won’t be covered unless new and clearly documented.
- Mechanical issues unrelated to transport: If your vehicle has an engine failure that wasn’t caused by transit damage, insurance won’t cover repairs.
- Acts of God: Some policies exclude damage from severe weather, natural disasters, or other unavoidable events.
This is why a thorough inspection before and after transport is essential. At Automobile Shipping, we provide checklists and assist in the documentation process to help you stay protected from beginning to end.
How to Verify Your Travel Insurance?
Before signing a shipping agreement, you should always verify the insurance coverage offered by the carrier. Don’t just take a company’s word for it—ask for documentation.
Here’s how to check:
- Request a copy of the insurance certificate: This should outline coverage types, limits, and expiration dates.
- Check the carrier’s USDOT number: Use the FMCSA’s online tool (https://safer.fmcsa.dot.gov) to confirm the transporter is licensed and insured.
- Confirm your vehicle is listed as cargo: Make sure your car falls under the covered items in the policy.
- Review the Bill of Lading (BOL): This document is your receipt and legal proof of the car’s condition at pickup and dropoff. You’ll use it to make any claims.
At Automobile Shipping, we partner only with insured carriers and provide full documentation upfront, ensuring you always know your coverage details.
When to Consider Additional Insurance
Depending on the value and condition, consider adding supplemental insurance to enhance the coverage offered by your transportation provider.
Here are a few scenarios where it makes sense:
- Luxury, exotic, or vintage cars: If your vehicle’s value exceeds the carrier’s coverage limits, you’re at risk of under-insurance.
- Shipping in winter or through hazardous areas: Inclement weather or high-risk zones can increase the likelihood of damage.
- Peace of mind: Some customers simply want the added protection to reduce stress during the move.
You can often purchase additional coverage through your auto insurance provider or a third-party specialty insurer. Many policies are customizable and affordable.
Before booking, ask your transporter about their maximum liability. At Automobile Shipping, we’ll help you evaluate whether additional insurance is right for you and guide you to trustworthy providers if needed.
What to Do if Damage Occurs During Shipping
Even with excellent carriers and reliable equipment, damage can still happen. The good news is that having insurance keeps you protected when you take the right steps.
Here’s what to do if your vehicle arrives damaged:
- Inspect the car carefully before signing the delivery form
Walk around the vehicle and compare its current condition to the pre-shipping photos and the Bill of Lading notes.
- Document the damage immediately
Take clear photos and write down a detailed description of the issue.
- Note the damage on the BOL
Do not sign off without mentioning the damage on the delivery paperwork.
- File a claim with the carrier
Reach out to your transporter right away and provide the documentation.
- Contact your broker for assistance
If you worked with a shipping broker like Automobile Shipping, their team should help you facilitate the claims process.
A reputable transport company won’t leave you to figure it out alone. That’s why working with a trusted name like Automobile Shipping can make a big difference if anything goes wrong.
Final Thoughts on Car Transport and Insurance
So—does car transport include insurance? Yes, but not all coverage is equal. Understand the difference between liability and cargo insurance, review policy limits, and check exclusions to keep your vehicle fully protected during the journey.
To simplify the process and ship with confidence, choose a provider that puts transparency and protection first. Automobile Shipping offers insured, reliable auto transport backed by licensed carriers, real-time support, and decades of industry experience.
Ready to ship your vehicle safely and securely? Get your free quote now at Automobile Shipping, and let us guide you every mile of the way.
