Understanding Auto Transport
Insurance: What’s Covered and What’s
Not
Written by: Auto Shipping Specialist
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What is Auto Transport Insurance
When you’re transporting a vehicle, understanding the insurance landscape becomes essential.
Auto transport insurance protects your investment during shipping—think of it as a shield
against unforeseen damage.
Carriers and brokers operate under federal law and maintain liability insurance and cargo
insurance to safeguard vehicles in transit. Coverage generally includes damage from accidents,
theft, or weather-related events while your vehicle is in the carrier’s possession. This includes
exterior damage like scratches, dents, or scrapes that occur during loading, transport, or
unloading.
Standard liability coverage ranges between $100,000 and $250,000 for most vehicles. Luxury,
exotic, or antique cars may require higher limits—sometimes $500,000 to $1,000,000 through
supplemental policies. This ensures adequate protection throughout the vehicle’s journey.
Importance of Auto Transport Insurance
When your vehicle enters transit, the financial responsibility for potential damage shifts
significantly. Most car owners don’t realize that regular auto insurance does not cover
transport-related risks—such as loading accidents or trailer-related damage.
Liability insurance through licensed carriers protects your vehicle against unexpected incidents
like road debris damage or weather exposure. Without proper insurance, vehicle owners can
face expensive repair or replacement bills, especially during severe weather or long-distance
transport.
Carriers typically maintain $350,000+ in cargo insurance coverage, but verifying this through
a Certificate of Insurance (COI) is essential. Insurance ensures you’re not financially exposed
to risks including theft, vandalism, collision damage, or Acts of God.
How Auto Transport Insurance Works
Understanding Brokers vs. Carriers
A licensed auto transport broker acts as the intermediary between customers and actual
carriers. Brokers do not transport vehicles directly—they coordinate with vetted carriers who
hold valid liability and cargo insurance.
Carrier insurance is what directly protects your car during transit. Coverage commonly ranges
from $100,000 to $1,000,000 per trailer. Brokers assist with claims, but the insurance claim itself
is handled through the carrier’s policy.
Understanding this distinction helps avoid confusion when a damage claim arises.
Broker Insurance vs. Carrier Insurance
Broker insurance typically covers liability for their role in arranging transportation, but only the
carrier’s cargo insurance covers the vehicle itself during transit.
Always request:
● Carrier’s Certificate of Insurance (COI)
● Coverage limits and exclusions
● FMCSA registration details
● Proof of cargo and liability insurance
Many customers mistakenly assume broker insurance covers their car, but legally, only the
carrier’s insurance applies once the car is loaded.
Types of Auto Transport Insurance Coverage
Open vs Enclosed Transport Insurance
Insurance coverage varies depending on whether you choose open or enclosed transport.
● Open Transport: Exposed to road debris, dirt, and weather. Typically insured under
standard liability and cargo coverage. Learn more
● Enclosed Transport: Provides added protection inside a covered trailer. Insurers often
apply better coverage terms due to reduced exposure. Visit for more information
Review the policy details before choosing a method—insurance conditions differ between trailer
types.Broker insurance typically covers liability for their role in arranging transportation, but only the
carrier’s cargo insurance covers the vehicle itself during transit.
Always request:
● Carrier’s Certificate of Insurance (COI)
● Coverage limits and exclusions
● FMCSA registration details
● Proof of cargo and liability insurance
Many customers mistakenly assume broker insurance covers their car, but legally, only the
carrier’s insurance applies once the car is loaded.
Liability, Comprehensive, and Collision Coverage
Most carriers maintain standard liability coverage, which protects against accidents involving the
carrier. However:
● Comprehensive coverage protects against natural events like hail, wind, and flooding.
● Collision coverage protects if the carrier’s vehicle collides with another vehicle or
object.
Because not all carriers provide complete comprehensive or collision coverage, always review
exclusions, deductibles, and limit caps before scheduling pickup.
Cargo Insurance
Cargo insurance covers the value of vehicles being transported. While many customers assume
full coverage, carriers often divide their policy limits across all vehicles on a trailer.
For example:
A $350,000 cargo policy on an 8-car trailer may provide an effective limit of ~$43,750 per
vehicle.
High-value or exotic vehicles often require:
● Supplemental cargo insurance
● Increased coverage limits
● Enclosed shipping
Reputable brokers verify all carrier credentials before assigning a shipment. Most carriers maintain standard liability coverage, which protects against accidents involving the
carrier. However:
● Comprehensive coverage protects against natural events like hail, wind, and flooding.
● Collision coverage protects if the carrier’s vehicle collides with another vehicle or
object.
Because not all carriers provide complete comprehensive or collision coverage, always review
exclusions, deductibles, and limit caps before scheduling pickup.
What’s Covered and What’s Not
Auto transport insurance typically covers:
● Physical damage during transit
● Scratches, dents, and exterior damage
● Theft or vandalism
● Collision-related damage
● Certain natural events (depending on the policy)
Auto transport insurance does NOT cover:
● Personal items left inside the vehicle
● Pre-existing damage
● Leaks, mechanical failures, or normal wear
● Items not listed on the Bill of Lading (BOL)
Before transport, always perform a full photo inspection, inside and out, to document
pre-existing condition.
Special Considerations for High-Value Vehicles
When to Consider Additional Coverage
High-value, luxury, or classic vehicles often exceed standard insurance limits. If your vehicle is
valued higher than the carrier’s coverage, supplemental insurance becomes essential.
In many cases:
● Standard policies do not cover full replacement value
● GAP-style transport protection may be needed
● Enclosed carriers are strongly recommended
Extra Insurance Options for Luxury and Classic Cars
Supplemental insurance options may include:
● Increased cargo coverage limits
● Agreed-value coverage for classic vehicles
● Additional protection for rare or collector models
● Zero-deductible transport insurance
Owners shipping irreplaceable vehicles should always secure coverage reflecting true market
value—not depreciated value.
Legal Requirements for Auto Transport Insurance
FMCSA requires carriers to maintain:
● Active USDOT and MC numbers
● Minimum $750,000 liability coverage
Carriers must keep insurance current and provide documentation upon request. Failing to
comply can result in fines, lawsuits, and transport violations.Supplemental insurance options may include:
● Increased cargo coverage limits
● Agreed-value coverage for classic vehicles
● Additional protection for rare or collector models
● Zero-deductible transport insurance
Owners shipping irreplaceable vehicles should always secure coverage reflecting true market
value—not depreciated value.
Choosing the Right Auto Transport Insurance Provider
Evaluating Your Insurance Needs
Consider:
● Vehicle value
● Distance of shipment
● Open vs. enclosed carrier
● Deductibles and exclusions
● Risk level of the shipping route
High-value or long-distance transports typically require higher coverage.FMCSA requires carriers to maintain:
● Active USDOT and MC numbers
● Minimum $750,000 liability coverage
Carriers must keep insurance current and provide documentation upon request. Failing to
comply can result in fines, lawsuits, and transport violations.Supplemental insurance options may include:
● Increased cargo coverage limits
● Agreed-value coverage for classic vehicles
● Additional protection for rare or collector models
● Zero-deductible transport insurance
Owners shipping irreplaceable vehicles should always secure coverage reflecting true market
value—not depreciated value.
Comparing Insurance Providers
When comparing providers:
● Review claims history
● Ask about average settlement time
● Confirm required documentation
● Understand coverage included with each quote
A reliable provider explains their policy clearly and transparently.
Understanding Policy Terms and Conditions
Always review:
● Deductibles
● Exclusions
● Coverage limits
● Liability vs. comprehensive protection
● Whether coverage applies to pre-existing damage
Reading online reviews or carrier safety records (via FMCSA’s SAFER database) can help
evaluate reliability.When comparing providers:
● Review claims history
● Ask about average settlement time
● Confirm required documentation
● Understand coverage included with each quote
A reliable provider explains their policy clearly and transparently.
Conclusion
Protecting your vehicle during transport starts with understanding insurance coverage. Verify
that both the broker and carrier maintain valid insurance, review policy terms carefully, request a
COI, and document your vehicle’s condition before pickup. Whether you’re shipping a standard
sedan or a high-value classic, the right insurance ensures a safe and stress-free journey.
