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Auto Transport Insurance: What is Covered During Transit?
What You Should Know Before Shipping Your Vehicle
When it comes to car shipping, one of the biggest concerns is whether the vehicle is insured during transit or covered by the owner’s personal insurance. Whether you choose open or enclosed auto transport, your vehicle should be insured during shipment. However, the quality and reliability of that coverage depends on the carrier assigned to move your vehicle.
In this guide, we explain how vehicle shipping protection works, why carrier insurance matters, and why the Bill of Lading is one of your strongest protections if an issue occurs during transit.
Carrier Insurance vs. Broker Liability
Many customers assume that the auto transport company they find online will personally ship and insure their vehicle. In most cases, that company is a broker. The broker’s job is to connect you with a qualified carrier that physically transports and insures your vehicle.
Working with a reliable broker like Safemile Auto Transport helps give you peace of mind. At Safemile, we review each carrier’s history, verify operating authority through the FMCSA and DOT, and confirm that the carrier has active insurance coverage before assigning them to a shipment.
If a carrier does not have active DOT authority or valid insurance coverage, we do not work with them. This vetting process helps ensure your vehicle shipping liability is backed by a legitimate carrier policy.
The Role of the Bill of Lading
In the auto transport industry, the Bill of Lading, also known as the BOL, is one of the most important documents you will sign. It acts as both a transport receipt and a vehicle condition report.
The Inspection Process
At pickup, you and the driver inspect the vehicle together. Any existing scratches, chips, dents, or visible damage should be noted on the BOL. The same inspection should be completed again at delivery.
Important: If you notice new damage at delivery, it must be marked on the BOL immediately. If the damage is not noted on the BOL, filing an insurance claim may become much more difficult or impossible.
How to File a Damage Claim Properly
While the goal is always safe and damage-free delivery, it is important to know what to do if something goes wrong. To file an auto transport insurance claim, document everything clearly. Take photos and videos of the damage, make sure the damage is listed on the BOL, and contact your broker as soon as possible.
Your broker can then help communicate with the carrier and guide the claim process.
Small vs. Large Claims
For minor damage, such as a small scratch or paint chip, many carriers may choose to resolve the issue directly instead of involving the insurance company. For larger damage, the vehicle owner usually needs to file a formal claim through the carrier’s insurance provider using the BOL, photos, and videos as evidence.
Important: Personal belongings stored inside the vehicle are not covered under the carrier’s insurance policy. You are responsible for any personal items left in the vehicle during transport.
Final Thoughts on Vehicle Shipping Protection
Choosing a reputable broker is one of the most important steps in protecting your vehicle during shipment. A good broker works with qualified carriers that have active DOT authority and valid insurance coverage.
If new damage occurs, note it on the BOL immediately and take clear photos and videos. For minor issues, the carrier may handle the matter directly. For major damage, a formal claim with the carrier’s insurance company may be required.
At Safemile Auto Transport, we take the guesswork out of insurance by working only with carefully vetted carriers, so you can ship your vehicle with confidence.