Whenever you’re shipping a vehicle across the country, you are putting a serious asset in the hands of a carrier you want to trust. There are financial concerns to think about. What if the car gets damaged by road debris? What happens if there is a car accident?
Learning about the best cargo insurance companies helps put your mind at ease. It means that when you shop around for different auto transport quotes, you are also checking which insurance providers back the shipment and how much they will cover in the event of an issue.
The more experienced the broker you work with, the more likely you’ll end up with a great car hauler insurance plan. That’s why it’s often better not to go with the lowest bidder, as the policies may not completely cover a scratched panel of paint on your Toyota Tundra. Details in cargo insurance matter.
Why Auto Transporter Insurance Matters
Federal law, enforced by the Federal Motor Carrier Safety Administration (FMCSA), requires commercial auto transport carriers to carry cargo insurance. The reason for this is simple. Should your vehicle be damaged in any way, you want protection, and your private insurance company may not cover it when a commercial carrier ships your car from Wyoming to Arizona or anywhere else in the country.
The trick is not to assume all carriers provide identical protection. Some may have coverage of only $100,000. Others may have as much as $1,000,000 or more. It usually depends on the types of cars being transported, the risk of the carrier's typical route, and how much risk the typical client is willing to accept.
For a company like Nexus Auto Transport, all carriers are carefully vetted to ensure they have appropriate cargo insurance, typically in the $250,000 to $750,000 range.
What Auto Transporter Insurance Typically Covers
The other assumption you may want to avoid is thinking car hauler insurance will cover all the damage to your vehicle inside and out. Most policies will cover standard damage from:
- Collisions
- Vehicle rollovers
- Fire
- Theft (during transport)
- Damage when loading/unloading
- Some weather-related incidents (icy roads, hail, etc.)
Cargo insurance may not cover any personal belongings left inside the car you’re shipping or mechanical breakdowns unrelated to transportation. Should your car suddenly have a slipping transmission after delivery that has nothing to do with shipping, that cost is likely on you.
The best cargo insurance companies will not cover pre-existing vehicle damage. That is why you go through the pre- and post-delivery inspection process and sign a Bill of Lading. It’s to confirm what damage already exists and if there is anything new after delivery.
Look for the auto transporter companies with high coverage limits, fast claims handling, strong reviews from previous claimants, nationwide trucking experience, and financial stability. Those will give you more confidence that the carrier knows what they are doing and has a contingency in place should an accident occur.
Best Cargo Insurance Companies Used Throughout the Auto Transport Industry
Progressive Commercial
Progressive Commercial is the largest commercial vehicle insurer in the USA. It is popular because it offers several discount programs and free federal and state insurance filing. You can see insurance quotes for damage during auto shipping online, and there are flexible coverage and payment options for the carrier, including rental reimbursement.
Strengths
- Extensive commercial trucking experience
- Available nationwide
- Flexible commercial vehicle coverage
- Large claims support network
- Digital policy management and filings
Potential considerations
- Coverage limits vary based on each unique carrier policy
- Premiums may be higher for higher-risk operations (luxury, antique, inoperable cars or heavy-duty equipment)
Great West Casualty Company
For more than 70 years, Great West Casualty has remained a stalwart in the commercial trucking industry. Typically, this car hauler insurance is designed for larger cargo companies shipping goods in trailers, but it also has an arm for vehicle transportation. It offers both cargo insurance and physical damage insurance to the truck itself.
There is an online claims system and an app to speed things up, and drivers with a safer track record can save a bit on premiums.
Strengths
- Long history serving trucking companies
- Transportation-specific risk expertise
- Strong safety and loss prevention resources
- Excellent reputation for commercial trucking
Potential considerations
- Primarily focused on commercial transportation rather than broader business insurance
Sentry Insurance
Sentry offers a real-time telemetry program that helps carriers save 5% on premiums. This is good for when you want to ship with any auto transporter insurance under Sentry because the carrier is motivated to be cautious on the road to cut expenses.
It only has 20 years of experience, but the flexible programming provides enough coverage for antique cars or for a carrier focusing on a niche part of the auto shipping market.
Strengths
- Strong experience with trucking businesses
- Flexible commercial policies
- Personalized underwriting
- Risk management support
Potential considerations
- Quotes are generally obtained through licensed agents rather than instant online pricing
The Hartford
The Hartford is one of America's oldest commercial insurers and provides auto transporter insurance solutions for individual carriers. However, it tends to work mostly with midsize and large logistics providers. You won’t find many enclosed auto delivery carriers that include The Hartford as a provider.
Strengths
- Excellent financial strength
- Fleet-friendly commercial programs
- Broad commercial insurance offerings
- Strong claims reputation
Potential considerations
- Larger fleets often benefit the most from its transportation programs
State Farm Commercial
State Farm is probably the most well-known among the best cargo insurance companies, not from its policies, but from viral marketing campaigns using recognizable spokespeople and a familiar jingle that you’re probably singing to yourself right now.
It’s a little better for personal insurance, but does offer auto transporter solutions with flexible coverage limits, typically more for open delivery with standard vehicles. Where it excels is the massive network of agents who can respond to a claim extremely quickly.
Strengths
- Strong customer service reputation
- Nationwide agency network
- Established claims infrastructure
- Broad commercial insurance options
Potential considerations
- Commercial trucking availability varies by state and business type
Comparison of Leading Cargo Insurance Providers
Insurance Provider |
Primary Target Audience |
Main Benefit |
Digital Quotes |
|---|---|---|---|
Progressive Commercial |
Owner-operators, small fleets, and large commercial carriers |
Largest commercial trucking insurer with flexible coverage options, nationwide availability, and strong claims infrastructure |
Yes |
Great West Casualty |
Commercial trucking companies and professional auto transport carriers |
Transportation-focused expertise, strong safety programs, and specialized trucking risk management |
Limited (primarily agent-assisted) |
Sentry Insurance |
Owner-operators, independent carriers, and small trucking businesses |
Personalized commercial trucking policies with transportation-specific underwriting and risk management support |
No (agent-assisted) |
The Hartford |
Medium to large commercial fleets and transportation businesses |
Strong financial stability, fleet insurance programs, and broad commercial business coverage |
Limited (typically through agents) |
State Farm Commercial |
Small businesses and commercial vehicle owners in eligible markets |
Extensive nationwide agent network with excellent customer service and commercial auto coverage options |
Yes |
How Nexus Protects Customer Shipments
With Nexus Auto Transport, the benefit of using any car hauler insurance comes from the carrier. Every single professional carrier in Nexus’ wide network is first vetted and verified to have the proper insurance policy and coverage for the intended delivery.
For example, a luxury Porsche requiring extra coverage may only be matched with enclosed auto carriers with higher policy limits than a standard Honda shipped on an open truck.
After you secure a free online car shipping quote from Nexus, be sure to ask the transportation specialist for details about the carrier's policy coverage for your specific vehicle. That will help ensure your car is as safe as possible from door to door, no matter where you’re shipping in the United States.
Before choosing a transporter, ask a few simple questions:
- Does the carrier carry active cargo insurance?
- Is the carrier properly licensed with the FMCSA?
- How are vehicle inspections documented?
- What happens if damage occurs during transport?
- Who manages the claims process?
- Will I receive updates throughout my shipment?
Any carrier should be able to provide these answers, and Nexus can walk you through getting the answers you need before your family van, commuter car, or beloved motorcycle is ever loaded onto a truck.
Choose More Than Just the Lowest Price for Auto Transporter Insurance
When you want to ship your car before moving to a new house or when you’ve taken a job across the country, don’t always go with the lowest quote. You want to balance the cost of shipping against the value and protection you’ll receive.
Talk to the team at Nexus first so the carrier you’re matched with has the right cargo insurance and coverage limit appropriate for your vehicle and your peace of mind.
FAQs
How can a vehicle owner verify that a carrier cargo insurance policy is currently active?
The FMCSA has a quick guide on verifying car hauler insurance policies and coverage, which you can use to confirm anything before agreeing to shipping.
What standard cargo liability limits should a professional car transporter carry?
It varies a lot. You can find a carrier with only $20,000 in cargo insurance and some with well over a million. Nexus always looks for carriers with at least $100,000 in coverage, but prefers those with $250,000 to $750,000 in total coverage.
Does car carrier cargo insurance cover damage caused by extreme weather conditions during transit?
Not necessarily. It depends on the event caused by weather and the type of insurance. Most accident swill be covered, but where you have to worry is with “Acts of God” outside the control of any carrier.
