Are you getting ready to ship a car across the country? You're not the only one.
Research shows today's car hauling market is worth around $11 billion due to the large demand for auto transport services.
Before shipping a car in California, it's essential to understand what types of car transport insurance you need. Vehicle transport insurance can help protect you financially if your car is damaged in transport, but not all car carrier insurance is the same.
Let's explore what you need to know about California car shipping insurance and why you need auto shipping insurance.
Why California Car Shipping Insurance?
Is car shipping insurance mandatory? No.
Is getting shipping insurance wise? Yes.
Federal law doesn't require you to buy insurance to transport a vehicle. The U.S. transportation department only requires auto transport services to have liability insurance.
Investing in additional shipping insurance through your transport service is smart, though. It will further protect your car during cross-country car shipping if the transport service's insurance isn't enough to cover the damage your car receives on the road.
Car Transport Insurance Coverage
A quality car shipping insurance policy will cover the cost of any vehicle damage your driver may cause during the shipping process. All you'll have to pay is your insurance deductible, if you have one, to take advantage of this coverage.
Different insurance companies offer varying coverage amounts and terms, so double-check to make sure the option you choose meets your needs. Some questions to ask potential car shipping insurers include:
- Will I have to pay a deductible?
- How large is your deductible for a damage claim?
- What kind of damage do you cover?
- What are your coverage limits?
- Will you cover only certain parts of my car?
- Do you cover specialty items, like spoilers?
Ask if you can buy extra insurance coverage if necessary, too.
Car Carrier Insurance Options
Comprehensive car moving insurance usually covers vehicle damage resulting from the following:
- Animals
- Falling objects
- Vandalism
- Theft
- Flood
- Hail
- Wind
- Fire
A second type of carrier insurance coverage is for vehicle collisions. This may help if your vehicle's transporter is in an automobile crash.
You ideally want full coverage, which includes both collision and comprehensive coverage. Speak with your chosen auto shipper to find out how their coverage works for various transport-related insurance claims.
Auto Shipping Insurance Tips
Reliable auto transport companies will be glad to show you proof that they're insured as required by law. They'll also answer your insurance-related questions before you purchase additional insurance from them.
Verify your supplemental insurance coverage dates and levels to ensure the policy will cover the full cost of replacing your car if it's stolen or totaled.
Ask if the insurance has exclusions. The insurance may not cover damage caused during unloading or loading, or when the car is at a terminal.
Get all special agreements or considerations in writing before agreeing to them. Having a written contract will protect you if something unforeseen happens.
More Vehicle Transport Insurance Tips
We mentioned earlier that law-abiding auto transport companies carry liability insurance to cover vehicle damage incurred during transport. This coverage protects only your car's exterior, though. It doesn't cover anything inside the car.
Remove your belongings from your car before it's shipped since you won't be reimbursed for any personal items damaged during transit.
Auto Transport Insurance Cost
Auto transport costs vary from one transport service to another based on several factors. These include the carrier's costs, your car's value, and your destination.
This cost is often between 0.5% and 4% of your car's value.
Auto transport services usually include the costs of their gas and electric car insurance coverage in the quotes they give their potential customers.
Car Shipping and Gap Insurance
Gap insurance is another insurance option that may help protect your automobile during transport. Gap insurance policies are available through third-party companies.
Use gap insurance only if you can't get full coverage (collision and comprehensive coverage) through your auto transport company.
Let's say your car is worth $49,000. Your auto transport service's insurance will cover your vehicle up to $39,000 only. Gap coverage will help you cover the $10,000 you're missing.
Gap insurance generally isn't helpful if your vehicle isn't financed. It will help you if your loan on the car is higher than what your vehicle is worth. The insurance will help you pay off your loan if your car is destroyed during transit.
Car Shipping Cost
Perhaps you're looking for the best deals at car dealerships in California and you plan to ship a car from California to Texas. Maybe you need to ship a car from Boston to California or even ship a car from Michigan to California instead.
Your California car shipping costs will depend on how far the car is going and the car model. It will also depend on whether you choose an enclosed car hauler or an open car hauler. Enclosed haulers are ideal for classic or rare cars, while open car haulers are a more economical option for the average vehicle.
A car shipping calculator can help you determine what your cross-country car shipping costs will be.
How We Can Help
California car shipping insurance is a smart investment to protect your car during shipping. The best car transport insurance covers damage from the elements and collisions.
At Nexus Auto Transport, we can help you ship a car to another state safely with our vehicle transport insurance. We'll gladly go over what our auto shipping insurance covers.
Get in touch with us to learn more about our transport services and car carrier insurance, and get a quote today!
