Ultimate Guide to Car Shipping Insurance

Protect your car during transport with the right insurance. Car shipping insurance safeguards your vehicle against damage, theft, or loss during transit. Here's what you need to know:

• Standard Coverage: Carriers are legally required to have liability and cargo insurance, but coverage limits vary.
• Personal Auto Insurance: Check if your policy covers shipping-related risks (most don’t).
• Extra Coverage Options: Ideal for luxury or modified cars, offering higher limits and fewer exclusions.
• International Shipping: Requires specialized insurance, like marine cargo coverage.

Quick Tips:

1. Document Your Vehicle: Take photos before and after shipping.
2. Choose Licensed Carriers: Verify their USDOT and insurance credentials.
3. Review Policies Carefully: Understand coverage limits, exclusions, and deductibles.

Car shipping insurance ensures peace of mind. Whether you're shipping locally or internationally, understanding your options can save you time, money, and stress.

Understanding Car Shipping Insurance | Protecting Your ...

Insurance Coverage Options

When shipping your car, it's important to understand the insurance options available to protect your vehicle during transit. Here's a breakdown of the coverage types you should know about.

Standard Carrier Coverage

By federal law, all auto transport carriers must carry basic liability insurance. This typically includes:

• Public liability coverage of at least $750,000
• Protection for property damage
• Coverage for environmental restoration

However, this type of coverage has its limits. Most carriers offer cargo insurance ranging from $100,000 to $250,000 per load, which is shared among all vehicles being transported.

Your Car Insurance Coverage

Your personal auto insurance policy might provide some coverage during shipping. Here are a few key points to check:

• Transport-related incidents are often excluded
• Comprehensive coverage may apply to certain damages
• Commercial transport is generally not covered
• Deductibles and policy limits still apply

It's a good idea to contact your insurance provider before shipping to clarify what is and isn’t covered.

Extra Insurance Options

For high-value, luxury, or customized vehicles, additional insurance might be worth considering. These policies often include:

• Higher coverage limits
• More extensive protection
• Reduced or zero deductibles
• Gap coverage for specific situations

This extra layer of protection can provide peace of mind, especially for valuable or modified cars.

Overseas Shipping Insurance

If you're shipping your car internationally, specialized insurance is a must. Risks and regulations for overseas transport require coverage such as:

• Marine cargo insurance for ocean transit
• Port-to-port protection
• Customs clearance coverage
• Liability insurance that meets international requirements

Here’s a quick comparison of typical overseas shipping insurance options:

Coverage Type	Protection Level	Typical Cost Range
Basic Marine	Limited liability	1-2% of vehicle value
Full Coverage	Comprehensive	2-4% of vehicle value
Total Loss	Complete replacement	3-5% of vehicle value

With these options in mind, you’ll be better prepared to choose the right insurance for your vehicle’s shipping needs.

Choosing the Right Insurance

Selecting the right insurance ensures your vehicle is protected during transport. Here’s what you need to know to make an informed decision.

Coverage Details

Carefully review the details of your policy. Standard coverage typically includes physical damage, total loss, harm caused during transport, and theft. However, policies often exclude things like pre-existing damage, personal belongings left in the vehicle, mechanical issues unrelated to shipping, and normal wear and tear.

Cost and Deductibles

The cost of insurance depends on factors like your vehicle's value, the deductible you choose, the transport distance, and the shipping method. Opting for a higher deductible can lower your premium but means you'll pay more out of pocket if repairs are needed. Find a balance between your budget and how much risk you're comfortable taking on.

Shipping Methods and Risks

Different shipping methods come with unique risks, which can influence your insurance needs:

• Open Transport: This is the most common and affordable option. While your vehicle is exposed to road debris and weather, standard insurance usually covers these risks.
• Enclosed Transport: Ideal for high-value or classic cars, as it offers extra protection. You might need to adjust your coverage for this method.
• Terminal-to-Terminal: Your vehicle is handled more frequently, increasing the chance of minor damage. Consider adding supplemental coverage for peace of mind.
• Door-to-Door: Since there’s less handling involved, standard coverage often suffices for this option.

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Filing Insurance Claims

Once you're familiar with your coverage, follow these steps to file a claim if your vehicle is damaged during transport.

Recording Vehicle Condition

Before shipping your vehicle, thoroughly document its condition. Take high-quality photos and videos from multiple angles, including:

• All sides of the vehicle
• Any existing scratches or damage
• The interior
• The odometer reading
• Under the hood
• Wheels and tires

Ensure your photos are time-stamped and save them securely. Write a detailed report noting any pre-existing damage. This will serve as your reference to identify any new issues caused during transport.

Reporting Damage

If you notice damage during the delivery inspection:

1. Take clear photos and videos of all new damage.
2. Note the damage on the Bill of Lading (BOL) before signing it. Never sign a clean BOL if damage is present.
3. Get the driver’s signature acknowledging the damage.
4. Notify your insurance provider within 24 hours.
5. Inform the shipping company in writing.

Required Paperwork

Have the following documents ready to support your claim:

Document Type	Purpose	Required Details
Bill of Lading	Confirms shipping terms	Damage notes, signatures
Inspection Reports	Tracks vehicle condition	Pre- and post-shipping info
Damage Photos	Provides visual proof	Clear, dated images
Repair Estimates	Details repair costs	At least two estimates
Vehicle Registration	Confirms ownership	Current registration
Insurance Policy	Verifies coverage	Policy number, terms

Once you’ve gathered everything, you’ll be ready to work with your insurance adjuster.

Working with Adjusters

Communicate effectively with your insurance adjuster to ensure a smooth claims process:

• Respond to their requests quickly.
• Keep a record of all conversations.
• Get agreements in writing.
• Ask for clarification if needed.
• Provide any additional documentation promptly.

If the adjuster’s initial offer feels too low, don’t hesitate to negotiate. Use your repair estimates and photos as evidence to support your case. The goal is to have your vehicle restored to the condition it was in before shipping.

Best Practices for Insurance

Review Insurance Details Thoroughly

Make sure to get the carrier's Certificate of Insurance and double-check these important details:

• Coverage limits
• Types of damage included
• Deductible amounts
• Exclusions or limitations
• Timeline for claims processing
• Options for additional coverage

Keep both digital and printed copies of all insurance-related documents, including policy numbers and contact information for the claims department.

Choose Licensed Carriers

Always go with carriers that are both licensed and insured to safeguard your vehicle during transit. If you're booking through MOD24's platform, you'll benefit from access to carriers that have already been pre-screened to meet strict insurance and licensing standards.

Verification Item	What to Check	Why It Matters
USDOT Number	Active status on FMCSA site	Confirms federal authorization
Insurance Coverage	Current policy status	Ensures valid protection
Operating Authority	MC number verification	Validates interstate authority
Safety Rating	FMCSA safety score	Measures carrier reliability

After confirming the insurance and licensing details, take extra precautions by documenting your vehicle's condition with a detailed pre-shipping checklist.

Pre-shipping Checklist

A well-prepared pre-shipping checklist can back up your insurance claims by providing clear proof of your vehicle's condition.

• Vehicle Documentation: Gather all essential paperwork, such as insurance policies, registration, maintenance records, and past damage reports.
• Condition & Visual Assessment: Carefully inspect your vehicle and record its condition. Pay attention to the odometer, any mechanical or cosmetic issues, and document everything with photos and videos, including:
  • Exterior from multiple angles
  • Interior condition
  • Special features or modifications
  • Current mechanical status

Conclusion

Main Points

Car shipping insurance protects your vehicle during transit. Here’s a quick summary of the key details covered in this guide:

Insurance Aspect	Key Details	Importance
Coverage Types	Standard carrier liability, personal auto insurance, additional coverage options	Covers a variety of potential risks during transit
Documentation	Pre-shipping inspection, photos, videos	Helps support claims if damage occurs
Carrier Selection	Confirm licensing and insurance details	Ensures you're working with a trustworthy and properly insured carrier
Claims Process	Report damage immediately, provide thorough documentation, cooperate with adjusters	Increases the likelihood of a smooth claims process

Understanding these points helps you make informed choices, protecting your vehicle and your finances during shipping.

MOD24 Services

MOD24 simplifies the car shipping process by connecting you with licensed and insured providers. Here's what MOD24 offers:

• Fast online booking: Reserve services in under 10 minutes.
• Verified providers: Work only with carriers whose credentials and insurance are checked.
• Member perks: Enjoy a $50 discount on shipping services.
• Reliable support: Get premium customer service every step of the way.

With MOD24, shipping your car is easier, faster, and safer.