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Understanding Insurance Coverage in Auto Transport

While auto transport is generally safe, accidents and damage—though rare—can occur. That’s why understanding insurance coverage is essential before booking any shipment.

What Does Standard Carrier Insurance Include?

All licensed auto transport carriers in the U.S. are required by federal law to carry a minimum amount of liability and cargo insurance. This coverage typically protects your vehicle in the event of damage caused by negligence, collision, or improper loading. However, the coverage limits and exclusions can vary significantly between companies.

Most standard policies cover cosmetic and structural damage caused during transit, but may not include losses due to “acts of God” such as natural disasters, or damage to personal items left inside the vehicle. It’s important to request a copy of the carrier’s Certificate of Insurance (COI) and confirm their coverage limits before finalizing your booking.

Should You Consider Additional Coverage?

If you're shipping a high-value, classic, or exotic vehicle, you may want to explore supplemental insurance. Some auto transport companies offer optional plans for extra peace of mind, while in other cases your personal auto insurance provider may be able to extend temporary coverage during transport. Always check with your insurer to see what’s included or excluded under your current policy.

How to File a Claim if Damage Occurs

Before releasing the vehicle to the carrier, it’s crucial to document its condition with time-stamped photos from multiple angles. Upon delivery, inspect the vehicle again and note any new damage on the Bill of Lading (BOL) before signing it. Failing to report issues at the time of delivery can make insurance claims more difficult or even invalidate them entirely. Claims should be submitted promptly along with supporting photos, the signed BOL, and a repair estimate.

Conclusion

Auto transport insurance offers an essential layer of protection for your vehicle, but the details matter. Always verify the carrier’s coverage, understand your own policy’s limitations, and take the right steps before and after shipment to ensure you're fully protected. A little preparation goes a long way in ensuring a smooth and worry-free experience.

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Since 2012, CarXnow has been redefining vehicle shipping across the U.S. and Canada — fast, secure, and hassle-free. With a network of 468 carriers and 625,020+ vehicles delivered, we have the right equipment to transport all types of vehicles — cars, trucks, motorcycles, and more. Enjoy guaranteed service, live GPS tracking, and transport up to 2X faster than the competition.

🚗 Get started today with a free quote and easy online booking! Our expert agents are available every day of the year to assist with your auto transport needs.

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