Car Shipping Insurance, Explained
The question behind every shipment: if something happens to the car on that truck, who pays? The answer has a clean structure once you see it, and the paperwork you sign at pickup matters more than any of it.
The carrier's cargo insurance is the main coverage
Federal law requires the motor carrier physically hauling your car to hold liability and cargo insurance, and cargo insurance is what covers vehicles on the trailer, in loading, and in unloading. We verify a carrier's insurance is active before your car is dispatched to them, no exceptions, and the carrier's details come to you at dispatch so you know exactly who is hauling.
What it covers, and what it does not
Cargo insurance covers damage caused by the transport: loading incidents, strap damage, accidents on the road. It does not cover personal items left in the car, pre-existing damage, or mechanical failures that were not caused by the carrier, an engine that was dying before pickup is not a transport claim. That boundary is exactly why the condition report exists.
The bill of lading is the whole case
At pickup, you and the driver record the car's condition and both sign. At delivery, you inspect against that record before signing again. Damage noted at delivery on the bill of lading, backed by your dated pickup photos, makes a claim clean and fast. Damage noticed after the driver leaves is an uphill fight, which is why the delivery walk-around is the one step you never rush, the full routine is in our preparation guide.
Your own policy and the gaps
Your personal auto policy generally is not the primary coverage during professional transport, but some comprehensive policies backstop transport damage, worth one call to your agent for a high-value car. For vehicles worth more than a carrier's cargo limit, ask us about the carrier's coverage amount before dispatch and consider supplemental coverage, the enclosed carriers that haul exotics typically carry higher limits, covered in our enclosed guide.
If damage happens
Note it on the bill of lading before the driver leaves, photograph it next to your pickup photos, and contact us the same day. The claim goes against the carrier's cargo policy, and your paperwork, matching photos plus a noted delivery report, is what turns a dispute into a payment.
Insurance questions
Is my car insured during shipping?
Yes, the motor carrier hauling it is required by federal law to carry cargo insurance covering vehicles in transit and during loading. We verify that coverage is active before dispatch.
Whose insurance covers damage during transport?
The carrier's cargo insurance is primary for transport damage. Your own policy is generally not the payer, though some comprehensive policies provide a backstop.
Do I need extra insurance to ship my car?
For most cars no, the carrier's cargo coverage is the protection. For very high-value vehicles, ask about the carrier's coverage limit and consider supplemental coverage if the car exceeds it.
Does my own car insurance cover transport damage?
Usually not as primary coverage, but some comprehensive policies help if a carrier claim falls short. One call to your agent answers it for your specific policy.
How much insurance do car carriers have?
It varies by carrier and fleet size, with federal minimums underneath. Ask us for the assigned carrier's cargo limit at dispatch if your car's value makes it relevant.
What do I do if my car is damaged in shipping?
Write it on the bill of lading before the driver leaves, photograph everything, and contact us the same day. Damage noted at delivery with matching pickup photos makes the claim clean.
How do I file a damage claim after car shipping?
The claim goes to the carrier's cargo insurer, supported by the signed bill of lading and your photos. We help you get it to the right place, that is part of what a broker is for.
What is a bill of lading and why does it matter?
It is the shipment contract and condition report combined, signed at pickup and delivery. It defines the car's condition at both ends, which makes it the single most important document in any claim.
Are personal items in the car covered by insurance?
No, cargo insurance covers the vehicle, not contents. That is a core reason carriers restrict personal items, details in our personal items guide.
How do I verify a carrier's insurance is real?
The FMCSA SAFER database shows insurance filings for any MC number, free. We run that verification on every carrier before dispatch, and you are welcome to run it yourself.
Is damage from road debris covered on an open carrier?
Claims for rock chips on open transport are genuinely difficult, that exposure is inherent to open shipping. If that risk is unacceptable for your car, enclosed transport removes it.
What if the damage is not noticed until after the driver leaves?
Report it immediately with photos, but know that claims are much harder once the delivery report is signed clean. This is exactly why the delivery inspection is the step you never rush.