According to a USA Today report, around 43,000 fatal car crashes occur in the US each year. With such alarming statistics, protecting your vehicle during transport has never been more essential. Whether relocating to a new state or purchasing a car from out of town, auto shipping insurance is crucial for safeguarding your investment.
When you hand over your car to an auto shipping company, you expect it to arrive at its destination in perfect condition. While reputable moving companies handle vehicles with care, accidents can still happen. This is where auto shipping insurance plays a critical role.
But why is vehicle transport insurance so significant? And how can you ensure you have the right coverage to protect your car during shipping? Read on to discover everything you need to know.
What Is Car Insurance Shipping?
Auto transport insurance, is designed to protect your vehicle when you need to ship it across state lines or even across the country. While your standard auto insurance policy covers incidents like collisions, hail, fire, or other specified areas, it typically does not extend coverage to damages that might occur during vehicle transport.
When shipping your car to a new location, there’s always a risk of potential damage, such as alignment issues, scratches, dents, or other unforeseen problems. To ensure your vehicle is fully protected during transit, work with a reputable company that offers specialized car transport insurance. This additional coverage provides peace of mind, knowing that your vehicle is safe from the moment it's loaded onto the carrier until it reaches the destination.
Before you ship your vehicle, take the time to thoroughly review the insurance options provided by the transport company. Some companies include basic coverage in their shipping fees, while others offer enhanced policies for an additional cost.
What Does an Auto Transport Insurance Cover?
No two auto transport insurance policies are alike, so it’s crucial to carefully review the details before making a purchase. Typically, these policies include both liability and cargo insurance, each offering different layers of protection.
Liability coverage generally kicks in if the carrier is responsible for any damage to your vehicle during transit. It ensures that repairs are covered if something goes wrong on the carrier's end. Meanwhile, cargo insurance steps in to handle damages that aren’t addressed by liability coverage, providing an extra safety net for your vehicle.
However, it’s important to remember that these coverages usually do not extend to personal items left inside your vehicle. So, as you prepare your car for shipment, be sure to remove any valuables or personal belongings.
Types of Vehicle Transport Insurance
Comprehensive Coverage
If you're looking for an all-in-one insurance solution to secure your vehicle during shipping, comprehensive coverage is the answer. This type of coverage safeguards your car against a wide range of unforeseen events, many of which are beyond your control. It can include events such as theft, vandalism, fire, and natural disasters like floods or storms.
Collision Coverage
Auto shipping companies often have busy schedules, which can sometimes lead to mishandling of vehicles during loading, unloading, or moving. Accordingly, collision coverage acts as a safeguard against these unexpected bumps and scrapes that might occur when shipping your car.
Gap Coverage
Gap coverage helps if your car is damaged or lost during shipping and the insurance payout isn't enough to cover what you owe on it.
For example, if your car is worth $20,000 but you still owe $25,000 on your loan, gap coverage will pay the $5,000 difference. This means you won't be stuck paying extra money out of pocket if your car's value is less than your loan balance.
How Much Does Auto Transport Insurance Cost?
Typically, you won’t need to pay extra for auto transport insurance. Suppose, if you already have insurance on your vehicle and your car hauler carries liability and cargo insurance for the trailer. In that case, you’re generally covered without any additional fees.
However, if you decide to purchase a separate policy, the cost can vary depending on the insurer and the level of coverage you choose.
Factors Influencing the Cost of Auto Shipping Insurance
Vehicle Type and Value
The type and value of your vehicle significantly influence the cost of shipping insurance. For instance, luxury cars, sports vehicles, or classic cars often require more comprehensive coverage due to their higher value. On the other hand, insurance for a standard sedan or more ordinary vehicle would generally cost less.
Distance of Transport
The distance your vehicle needs to be transported can directly affect insurance costs. Longer journeys often come with increased risks due to potential hazards such as weather conditions, and road conditions. As a result, insurance premiums may be higher for longer distances.
Conversely, shorter trips typically involve lower risks and thus may incur lower insurance costs.
Method of Transport
The way you choose to ship your vehicle can affect your insurance costs. For example, open transport, where your car is shipped on an open trailer, usually has a lower insurance premium. Likewise, enclosed transport, where your car is kept in a fully enclosed container, costs more because.
When Should I Buy Additional Transport Insurance Policy?
In many instances, you may not need to purchase extra auto transport insurance. However, additional coverage can be invaluable if your vehicle has expensive accessories or custom features.
While some of these enhancements might be covered under your existing auto insurance, that coverage may not extend to damages caused during transport. This gap could leave you exposed to out-of-pocket expenses if your vehicle or its accessories are damaged en route.
To avoid any surprises, consult with your auto insurer before deciding on additional car shipping insurance. Moroever, review your current policy to see what’s covered and determine if secondary coverage is necessary to fully protect your vehicle during transit.
Choosing the Right Vehicle Transport Insurance
Review Your Existing Insurance Coverage
Start by reviewing your current auto insurance policy to determine if it covers vehicle shipping over long distances. While the DMV mandates that every vehicle on U.S. roads must have insurance, this coverage typically only applies to damage when you're driving the car.
Additionally, to have further inquiries consider giving your insurance provider a call and discussing your auto shipping plans. This way, you can find out if you need extra coverage and avoid paying for unnecessary protection.
Assess Insurance Offered by Transport Companies
All auto shipping companies are required by the United States Department of Transportation (USDOT) to provide basic liability insurance to their customers. However, before committing to any vehicle transport company, carefully review what their insurance covers.
Here are some key details to consider:
- Deductible Amount.
- Coverage Limits.
- Exclusions.
- Claims Process.
Explore Third-Party Insurance Options
If the insurance provided by the car transport company doesn’t meet your needs, consider opting for a third-party insurance policy. This allows you to customise coverage based on the specific value of your vehicle and the distance it will travel.
Remember to research and compare options carefully. Find a policy that balances coverage cost-effectively, ensuring you get the protection you need at a good value.
Can You Add Insurance After Shipping?
Once you ship your vehicle, you may not be able to purchase car shipping insurance. This is because the insurance company won't be able to tell apart the damages caused while in transit or damages already existing.
If you are on the fence about getting car shipping insurance, reach out to your auto insurance company. They can help go over your current coverages and let you know if it is a good idea to purchase additional insurance.
How Transport Insurance Safeguards Your Vehicle
Protection Against Road Hazards and Accidents
When transporting your vehicle, it can be exposed to unexpected hazards like potholes, debris, or even collisions with other cars. Even the most skilled drivers can face situations that lead to accidents.
Consequently auto-transport insurance covers any damage from these incidents, so you won't be stuck with expensive repair bills. This is especially important when shipping your vehicle across the country, where the long-distance further increases the risk of encountering road hazards.
Coverage for Damage During Loading and Unloading
One of the riskiest moments for your vehicle during shipping is the loading and unloading process. Even though auto moving companies handle these operations with great care, accidents can still occur, leading to scratches, dents, or more serious damage.
In such cases, vehicle transport insurance provides coverage for mishaps that happen during loading or unloading saving you from unexpected repairs.
Theft and Vandalism Protection
When your vehicle is being transported, it’s vulnerable to theft or vandalism. Although reputable auto transport companies implement strict security measures, the risk of theft or vandalism can’t be eliminated. That’s why transport insurance is crucial.
It offers essential protection against these risks, assuring that if your vehicle is stolen or vandalised during transit, you’re financially covered. With this protection, you can stay at ease, knowing that even in unfortunate circumstances, you won’t face significant financial loss.
Weather-Related Incident Coverage
Mother Nature can be unpredictable. Extreme environmental conditions, such as heavy rain, snow, hail, or strong winds, can pose serious risks to your vehicle during transport. These conditions might cause damage to your car or disrupt the transport process.
Transport insurance often includes coverage for such weather-related damage, ensuring that if your vehicle is affected, you are financially protected.
Things to Consider When Buying an Auto Insurance Policy
Get Everything in Writing
Before you sign any documents, make sure all considerations or special agreements are down on paper. If an insurer provides you with a service or guarantee that is not typically in their regular contracts, you must get that down in writing. In the event that something happens to your vehicle, they can argue that it was not in writing so that they won't honor your request.
Request Proof of Insurance
When you work with a reputable car carrier insurance company, they'll provide you with your proof of insurance without any questions. If you come across any companies that don't want to give you proof of insurance, you might want to work with another insurance company.
Remove All Your Possessions From Your Car
In general, car shipping insurance does not cover any damages inside of your vehicle. This includes any valuables that go missing while in transit. To ensure that nothing inside of your car goes airborne, make sure you take them out.
Items to Remove From Your Vehicle:
- Any valuables
- Jackets
- Loose change
- Electronics
- Anything else that you wish to keep
To be safe, make sure to take out everything from the inside of your car. This reduces the chance of theft and reduces the possibility of any damages happening while your vehicle is on the road.
Perform an Inspection
When it comes time to ship your vehicle, the driver who comes to pick up your vehicle must record the car's condition. The driver will make a note of any pre-existing damages.
To ensure that everyone is on the same page, conduct the inspection with the driver while they are in your presence. It also helps to take photos of the vehicle to show proof of its condition before it goes off.
Complete the Bill of Lading
It is very important that you complete the Bill of Lading form carefully. Compare the condition of your vehicle against this document and record any damages you see.
If you need to file a claim, you'll need to provide the insurance company with detailed documentation. Make sure you send the insurance company the photos taken before the vehicle is shipped. This will strengthen your claim.
Where to File a Complaint
If you need to file a complaint about the damages to your vehicle, make sure you let the insurance company know. If they improperly handle your claim or fail to pay for the damages they caused, reach out to the Better Business Bureau.
You also have the right to report the complaint to your Department of Transportation. Be sure to include all evidence you have against the insurance company to make the reporting process go smoothly.
Trust Nexus Auto Shipping for Your Vehicle’s Safe Journey
When it comes to transporting your vehicle, having the right insurance coverage is crucial. It’s not just about following regulations; it’s about making sure your car arrives safely, no matter the distance or conditions.
Nexus Auto Transport is a trusted leader in the auto shipping industry. We don’t just move vehicles; we protect them every step of the way. Our comprehensive range of insurance policies is customized to fit your specific needs, offering robust protection against various risks.
Contact us today to get your vehicle on the move, or use our online shipping cost calculator for a personalized auto-shipping quote.
