When you hand over your car to an auto transport company, you’re placing one of your most valuable possessions in someone else’s hands. That’s why auto transport insurance isn’t just a nice-to-have; it’s essential. Whether you’re a military family relocating to Hawaii, a student moving for school, or someone who has just purchased a new car online, car shipping insurance provides protection and peace of mind throughout the entire process.
Auto transport insurance is designed to safeguard against unexpected accidents, theft, or damage that may occur while your vehicle is in transit. While auto transport companies like Coastal Auto Shipping take every precaution to ensure vehicles arrive safely, the road and the sea always carry some risks.
From unpredictable weather to other drivers, there are plenty of factors outside anyone’s control. Insurance steps in to cover those “what if” moments, so you’re not left paying for damages that weren’t your fault.
Why Auto Transport Insurance Matters
Think of auto transport insurance as a safety net. Without it, you could be financially responsible if damage occurs, whereas the carrier would be responsible for it. By law, carriers are required to carry liability insurance, but that only goes so far. To be fully protected, customers need to understand the difference between basic liability coverage and comprehensive cargo insurance.
Common Scenarios Where Insurance Is Crucial:
- A carrier’s truck is involved in an accident, damaging multiple vehicles
- Severe weather, such as hail or hurricanes, causes dents or cracks
- Theft or vandalism occurs before delivery
- Damage happens during loading or unloading
These aren’t far-fetched situations. Insurance ensures you won’t be stuck paying for problems outside your control.
Types of Auto Transport Insurance
Not all insurance in car shipping is created equal. There are two main types of coverage you’ll hear about, cargo insurance and liability insurance, and knowing the difference helps you spot gaps before your vehicle is loaded onto a carrier.
Cargo Insurance
This is the primary protection for your vehicle during transport. Cargo insurance covers physical damage to the cargo while it’s being hauled, such as:
- Scratches, dents, or broken mirrors caused by shifting or debris
- Damage from accidents while the car is on the trailer
- Theft of the vehicle during transport
Every legitimate carrier must carry active cargo insurance, but coverage limits vary widely. Some policies may only cover up to a certain dollar amount per vehicle, which is why brokers like Coastal Auto Shipping always verify adequacy for the type of car being shipped.
Liability Insurance
In addition to cargo coverage, liability insurance protects against third-party claims. For example, if a car somehow slips off a carrier’s trailer and damages another vehicle or property, the liability policy covers those costs.
While this doesn’t directly compensate for damage to your car, it serves as a required safety net that ensures carriers are financially responsible if an accident affects others.
Common Exclusions
Even with active insurance, there are exclusions to be aware of. Most auto transport insurance doesn’t cover:
- Pre-existing damage (noted during the pre-shipment inspection)
- Personal belongings left inside the vehicle
- Minor cosmetic blemishes from road dust or dirt
- Weather-related issues like hail or floods (unless explicitly listed in the policy)
This is why careful inspection reports and photo documentation are critical at both pickup and delivery. They establish the condition of your car before transport, making claims smoother if damage does occur.
Insurance Requirements at Coastal Auto Shipping
At Coastal Auto Shipping, transparency is everything. We make sure customers know exactly what’s covered and what documentation is required.
- Minimum Coverage Limits: All carriers must maintain federally mandated liability and cargo insurance.
- Proof of Insurance: Customers can request the carrier’s insurance certificate before shipping.
- Condition Reports: Before and after shipping, inspection reports document the vehicle’s state, which is critical for filing claims.
This upfront clarity eliminates confusion and helps customers feel secure about coverage.
Minimum Coverage Limits
Federal law requires motor carriers to maintain liability and cargo insurance, but the exact limits can vary depending on the company. Coastal Auto Shipping ensures that all partnered carriers carry coverage that meets or exceeds industry minimums. Typically, this means liability protection in the hundreds of thousands of dollars, with cargo insurance that covers each transported vehicle against potential damage in transit.
For customers, this minimum requirement provides a baseline of reassurance: if something goes wrong, there’s at least a legally mandated safety net in place.
Documentation and Proof of Coverage
One of the most important steps in preparing for vehicle transport is verifying insurance details before your car is loaded onto the carrier. Coastal Auto Shipping requires every carrier to provide customers with an insurance certificate, which outlines the specifics of what the policy covers.
This certificate helps customers:
- Verify the insurance company backing the policy.
- Confirm the coverage limits for vehicle damage.
- Understand whether exclusions apply, such as for personal items or aftermarket modifications.
- Review deductible amounts in case of a damage claim.
Customers are encouraged to carefully review these details and ask questions if anything is unclear. Coastal Auto Shipping’s team is available to walk customers through the fine print so there are no surprises later.
Why This Matters
Having clear insurance requirements isn’t just a formality; it’s an essential layer of protection. Documentation ensures that, in the event of an accident, customers can file a claim quickly and efficiently without delays caused by missing or incomplete records. It also helps prevent disputes about liability in the event of vehicle damage during shipping.
How Coastal Auto Shipping Meets Insurance Needs
Insurance isn’t just about having a piece of paper on file; it’s about creating protection for customers and their vehicles. Coastal Auto Shipping goes beyond the bare minimum to make sure every shipment is backed by solid coverage and trusted carriers.
Exemplary Insurance Partnerships
Coastal Auto Shipping carefully vets its network of car shipping carriers and only works with motor carriers who maintain strong insurance policies. These partnerships ensure that:
- Every carrier provides cargo insurance coverage that protects vehicles in transit.
- Liability insurance is active, verifiable, and compliant with federal and state law.
- Policies are underwritten by established, reliable insurance companies with a track record of paying valid claims.
This layered approach enables Coastal Auto Shipping to provide coverage with confidence, regardless of the type of car or route involved.
Steps to Obtain Insurance Through Coastal Auto Shipping
For customers, the process is straightforward and transparent:
- Booking the Transport: Once you schedule shipping, Coastal Auto Shipping confirms the carrier’s insurance details and provides an insurance certificate to review.
- Vehicle Inspection: Before loading, a bill of lading is completed to document the vehicle’s condition. This record becomes essential in the event of damage.
- Transit Coverage: During shipping, the carrier’s insurance policy covers accidents, theft, or other vehicle damage within the scope of the policy.
- Filing a Claim: If an incident happens, customers can file a damage claim directly with the insurance provider. Coastal Auto Shipping provides all necessary documentation, including inspection reports and transportation records, to ensure a seamless shipping process.
- Resolution: Claims are usually processed within a set number of business days, depending on the insurer and the complexity of the case.
Regulations Governing Auto Transport Insurance
Insurance coverage is tightly regulated at the federal and state levels. These laws exist to protect consumers, carriers, and brokers, and they establish the baseline standards that every reputable auto transport company must adhere to.
Federal Requirements
The Federal Motor Carrier Safety Administration (FMCSA) oversees interstate motor carrier safety. To operate legally, carriers must:
- Maintain active liability insurance with minimum coverage amounts.
- File insurance documentation (Form BMC-91 or BMC-91X) directly with the FMCSA.
- Carry cargo insurance sufficient to cover damage or loss of transported vehicles.
This ensures that if a carrier is transporting cars across state lines, customers’ vehicles are protected by an insurance policy that meets federal safety standards.
State-Specific Rules
While the FMCSA sets the federal floor, individual states may impose additional requirements. For example:
- Some states require higher minimum coverage levels than the federal law.
- States may mandate different types of insurance (such as additional cargo coverage).
- Local regulatory bodies can demand proof of insurance before a carrier can operate within their borders.
This creates a dual layer of protection, combining federal oversight with state-specific compliance.
Broker Responsibilities
Car shipping brokers, like Coastal Auto Shipping, also operate under clear regulations. Brokers must:
- Verify that every carrier they partner with has active, valid insurance.
- Provide customers with the carrier’s insurance details before transport.
- Maintain their own surety bond or trust agreement to ensure accountability in transactions.
What Happens if a Carrier Fails to Comply?
If a carrier lets insurance lapse or fails to meet regulatory standards, they risk:
- Immediate suspension of their FMCSA authority
- Fines and penalties at both the federal and state levels
- Loss of the ability to legally transport vehicles
For customers, working with a broker like Coastal Auto Shipping eliminates this risk because the company handles verification and only partners with compliant, insured carriers. This means you don’t have to spend time researching or second-guessing a carrier’s insurance status. Coastal Auto Shipping does the legwork to confirm coverage, giving you peace of mind that your vehicle is protected throughout transit.
FAQs About Auto Transport Insurance
Does my personal car insurance cover shipping?
Generally, no. Most personal car insurance policies don’t extend to vehicles while in transit with a carrier. This is why carrier-provided cargo insurance is essential. However, it’s still smart to notify your auto insurer before shipping, as some policies may include limited protection or offer supplemental options. Checking in advance ensures you understand exactly where your coverage begins and ends.
What if my car is damaged during shipping?
If new damage occurs, note it on the delivery inspection report, take photos, and notify both the carrier and Coastal Auto Shipping immediately. The claim will then be filed with the carrier’s insurer. Be sure to keep copies of all paperwork, including the Bill of Lading, as it serves as key evidence in the claims process. In most cases, the insurer will review the documentation and arrange compensation or repairs, ensuring you’re not left to cover the costs on your own.
Can I add extra protection?
Yes, supplemental insurance options, sometimes referred to as gap insurance, may be available for customers with high-value or specialty vehicles. This ensures the full value of the car is covered.
Many customers opt for this option when transporting luxury, antique, or custom vehicles, as standard carrier coverage may not accurately reflect the vehicle’s true value. Adding extra protection can give you greater peace of mind knowing that, if the unexpected happens, you won’t be underinsured.
How long does the claims process take?
Most claims are processed within 30 business days, depending on the insurer and documentation provided. Coastal Auto Shipping supports customers throughout the process to keep it moving smoothly.
The exact timeline can vary depending on the complexity of the claim, the extent of the damage, and the speed at which all required paperwork and evidence are submitted. Staying proactive with photos, inspection reports, and timely communication often helps expedite the process.
Are personal items in my vehicle covered under the policy?
No. Insurance only applies to the vehicle itself, not belongings left inside. It’s always recommended to ship the car empty to avoid disputes. Even small items can shift during transit and cause damage, which won’t be covered under the carrier’s policy. Removing all personal belongings not only protects your property but also helps ensure a smooth claims process if vehicle damage occurs.
Contact Coastal Auto Shipping Today
Auto transport insurance isn’t just paperwork; it’s your safety net against unexpected costs and stress if something happens in transit. From cargo insurance coverage to liability policies and supplemental options, knowing what’s required and what’s available ensures your vehicle is always protected.
At Coastal Auto Shipping, every carrier is vetted for compliance, insurance certificates are verified, and customers are guided through the process from start to finish. Whether you’re shipping a standard sedan or a high-value classic, insurance is never an afterthought; it’s an essential part of the journey. Contact us today to learn more.