Car shipping insurance means the carrier's cargo insurance. It normally covers the car from the signed inspection at pickup to the signed inspection at delivery, and pays for damage caused while the car is loaded, hauled or unloaded. It doesn't pay for damage already on the car, items left inside or mechanical wear.
What cargo insurance pays for
Cargo insurance is written for the vehicles on the truck. A scrape on the front lip from a ramp, a dent from a strap or a dropped chain, damage in a crash, a fire, theft from the trailer: those are the claims it exists for. Many policies set a limit per car and a limit per load, which matters when a high-value car shares a trailer with nine others.
What it usually leaves out
- Damage already on the car. Anything noted at pickup, and anything that wasn't noted but can't be shown to be new.
- Things inside the car. The policy covers the vehicle, not boxes, tools or luggage in the trunk.
- Mechanical and electrical problems that weren't caused by loading or the trip, such as a weak battery that dies or a leak that gets worse.
- Loose parts that should have come off first: a roof rack, a removable antenna, a car cover flapping on an open deck.
- Road debris on an open trailer, under some policies, which treat a stone chip as a road hazard. If the paint matters, ask about it, or ship enclosed.
What federal rules require, and what they don't
Interstate for-hire carriers on trucks rated at 10,001 pounds or more must carry at least $750,000 in public liability insurance (49 CFR 387.9), which covers other people on the road, not the cars on the trailer.
Federal rules require cargo insurance only from household goods movers. A car carrier's cargo coverage comes from its own policy, and the limit is the figure on its certificate of insurance.
Does your own car insurance cover shipping?
Sometimes, in part. Personal auto policies differ on whether they extend to a car riding on a commercial trailer, and comprehensive coverage is the part most likely to apply. Treat it as a backup to the carrier's cargo policy, not the main cover, and keep it active through the move.
High-value and classic cars
Tell us what the car is worth when you call. A car worth more than a typical cargo limit belongs on a trailer whose limit is higher than its value, usually an enclosed carrier, so the value is worth mentioning early. Classic car shipping covers how those cars are loaded and strapped.
If the car arrives damaged
A claim is only as strong as the delivery inspection, so do it before you sign.
- Walk the car with the driver in daylight and compare it with the pickup condition report. Check the lower front lip, the wheels and the roof, the spots that loading and the deck above can reach.
- Write each new mark on the delivery copy of the Bill of Lading, with where it is and what it looks like, and photograph it while the driver is there.
- Sign with the damage noted. A delivery signed with nothing noted makes a later claim hard to prove.
- File the claim against the cargo policy in writing straight away, with the Bill of Lading, your photos and a repair estimate. Claims have a deadline, so don't let it sit.
Most of what keeps a claim simple happens before pickup: how to prepare your car for shipping covers emptying the car, taking off loose parts and photographing it.
