Car Shipping Insurance Guide – What to Know Before Transport

Shipping your car across the country or even a few states away is a convenient solution for many people relocating, buying a vehicle online, or sending a car to a loved one. But with transport comes risk, and that’s where car shipping insurance plays a vital role. Whether you’re a first-time shipper or a seasoned vehicle mover, understanding how insurance works during car transport is essential.

In this guide, we’ll cover the ins and outs of car shipping insurance, including types of coverage, what to look out for, average costs, and smart tips to keep your vehicle protected throughout the journey. We’ll also include related terms like auto transport insurance, vehicle shipping insurance, and transport damage protection to give you a complete picture.

Why Car Shipping Insurance Is Important

When your vehicle is in transit, it’s exposed to various risks such as road accidents, theft, weather damage, and loading/unloading mishaps. While professional auto transport companies strive to handle every car with care, the potential for damage is always present. That’s why having the right insurance coverage matters.

Without proper insurance, you may find yourself responsible for repair costs in the event of damage. A solid car shipping insurance plan ensures peace of mind and financial protection.

Types of Car Shipping Insurance

Primary Carrier Insurance

All legitimate car carriers in the U.S. are required by law to carry cargo insurance. This primary insurance covers damage caused by the carrier while the vehicle is in their possession.

Key facts about primary insurance:

Included in the carrier’s quote
Covers damages related to transport accidents
May have limits and exclusions
Typically doesn’t cover personal items in the car

Always request a copy of the carrier’s Certificate of Insurance (COI) and review it carefully.

Secondary or Supplemental Insurance

Your personal car insurance may offer limited coverage during shipping, but often, it doesn’t fully cover transport-related damage. If you have concerns about gaps in coverage, consider purchasing supplemental vehicle shipping insurance.

This can be obtained through:

A third-party insurance provider
The shipping broker or carrier (as an add-on)

Supplemental coverage can include:

Full-value protection
Gap insurance (covers the difference between actual value and claim payout)
Protection for specialty or high-value vehicles

Do You Need Extra Insurance to Ship a Car?

Yes, in most cases, it’s a smart move to either verify existing coverage or invest in additional insurance. Here’s why:

Carrier insurance limits may not match the actual value of your vehicle
Deductibles can reduce your claim amount
Not all types of damage (e.g., natural disasters) are included

If you’re transporting a luxury, classic, exotic, or customized vehicle, purchasing comprehensive car transport insurance is highly recommended.

How to Verify a Carrier’s Insurance

To ensure your car is covered:

Ask for a Certificate of Insurance (COI): This document outlines the carrier’s insurance coverage, limits, and exclusions.
Check with FMCSA: Use the FMCSA Licensing & Insurance website to verify that the carrier is properly insured and authorized.
Contact the Insurance Provider: Call the carrier’s insurance company directly to verify the policy status.

Doing this due diligence is essential in making sure your vehicle is protected under valid auto transport insurance.

How Much Does Car Shipping Insurance Cost?

The cost of car shipping insurance varies based on several factors:

Vehicle value
Shipping distance
Transport type (open vs. enclosed)
Carrier safety history
Type of coverage (basic vs. full-value)

On average:

Expect to pay around 1.5% to 2.5% of your vehicle’s value for standalone insurance
Example: A $30,000 car might cost $450–750 to fully insure during shipping

If using open transport, the risk is slightly higher, and insurance may cost more. Enclosed auto transport provides more protection but often comes with built-in higher coverage.

Tips for Maximizing Your Insurance Protection

Here are some smart ways to ensure your insurance truly protects you during vehicle shipping:

Document the Vehicle Condition Thoroughly

Take detailed, time-stamped photos from all angles
Note existing scratches, dents, and imperfections
Ensure the driver does the same when picking up the car

This will be critical in the event of a damage claim.

Review the Bill of Lading (BOL)

This is the legal contract between you and the carrier
It should accurately reflect your vehicle’s condition
Inspect and sign off carefully both at pickup and delivery

Ask About Exclusions

Not all damage is covered. Common exclusions:

Acts of God (e.g., earthquakes, floods)
Mechanical issues (unrelated to transport)
Personal items left inside the vehicle

Avoid Leaving Items in the Car

Most auto transport insurance does not cover personal belongings. Remove all valuables, electronics, and loose items to avoid complications.

File Claims Promptly

Contact the carrier and insurance provider immediately after delivery if there’s damage
Provide photo evidence and documentation
Most providers have strict deadlines (often within 7–10 days)

Auto Transport Insurance Requirements: Know the Law

In the U.S., the Federal Motor Carrier Safety Administration (FMCSA) requires all vehicle carriers to:

Hold valid cargo insurance
Maintain a minimum level of liability coverage (usually $750,000 or more)

Brokers, on the other hand, are not required to carry insurance but must only work with properly licensed and insured carriers.

Supplemental Car Shipping Insurance Providers

If you decide to buy extra protection, you can explore options through:

Baker International (a well-known supplemental auto transport insurer)
third-party insurance brokers who specialize in transport protection
Your shipping broker, who may offer policies bundled with service

Make sure the policy:

Covers the entire transport period
Matches your car’s actual market value
Clearly outlines the claims process and exclusions

Common Mistakes to Avoid

Assuming your carrier’s insurance is enough: Always verify coverage limits and exclusions
Skipping documentation: Lack of proof can make it nearly impossible to win a claim
Waiting too long to file a claim: Time-sensitive claims may be denied if delayed
Not reading the fine print: Understand what is and isn’t covered

Final Thoughts

Car shipping insurance is not just a formality—it’s an essential part of protecting your vehicle during transit. While most reputable carriers offer basic coverage, it’s up to you to ensure that the policy matches your car’s value and your peace of mind.

From verifying the insurance details of your carrier to documenting the condition of your vehicle, being proactive is the key. And if needed, don’t hesitate to invest in supplemental car transport insurance to ensure you’re fully covered.

For a worry-free shipping experience, partner with a trusted vehicle shipping company that prioritizes transparency and customer protection. Always ask questions, get everything in writing, and stay informed throughout the shipping process.

Need Help with Auto Transport or Insurance Questions? Safemile Auto Transport offers trusted, insured shipping solutions for vehicles nationwide. Contact us today for a free car shipping quote and get expert guidance on the right insurance options for your move.