What Insurance Do You Need When Shipping a Car to Another State?

When shipping a car to another state, ensuring that your vehicle is properly insured during transit is essential.

Most auto transport companies provide basic insurance coverage as part of their service, but it’s important to understand what’s included and whether additional coverage is needed.

This article will explain the types of insurance available when shipping a car, how to verify coverage and tips for ensuring your vehicle is protected throughout the transport process.

1. Basic Auto Transport Insurance

Most auto transport companies include basic insurance coverage in their pricing.

This coverage typically protects your vehicle against damage that occurs during loading, unloading, or transit.

However, the amount of coverage can vary from company to company, so it’s important to review the policy details carefully.

What’s Covered by Basic Insurance?

• Damage During Transit: Most basic policies cover damage that occurs while your vehicle is in transit, such as scratches, dents, or more severe damage caused by accidents.
• Damage During Loading /Unloading: The policy also typically covers any damage that occurs while loading or unloading your vehicle onto the transport trailer.

While this basic coverage offers some protection, the coverage limits may not be sufficient for high-value or luxury vehicles.

In these cases, additional insurance may be needed to fully protect your vehicle.

2. Additional Insurance for High-Value Vehicles

If you’re shipping a high-value, luxury, classic, or custom car, the basic insurance provided by the transport company may not be enough to cover the full value of your vehicle in the event of damage.

Purchasing additional insurance can help bridge the gap and provide peace of mind.

Why You May Need Additional Coverage

• Limited Coverage Limits: The coverage limits on basic transport insurance may not be high enough to fully compensate you if your vehicle is damaged, especially for high-value vehicles.
• Protection for Custom or Modified Cars: If your vehicle has custom paint, bodywork, or modifications, additional insurance will ensure these unique features are protected during transit.

Contact your auto transport company to discuss additional insurance options and whether they offer plans that provide higher coverage limits or full-value protection for your vehicle.

3. Verify the Transport Company’s Insurance

Before booking your car shipment, it’s crucial to verify that the auto transport company is properly insured.

Reputable transport companies are required by law to carry insurance that covers damage to vehicles during transport.

How to Verify Insurance

• Ask for Proof of Insurance: Request a copy of the transport company’s insurance policy to review the coverage limits and what is included.
• Check the USDOT Number: Use the Federal Motor Carrier Safety Administration’s (FMCSA) online database to verify the company’s USDOT number and ensure they are properly licensed and insured to operate across state lines.

If the company is unwilling to provide proof of insurance, consider looking for another transport provider. A reputable company should have no issue providing this information.

4. Personal Auto Insurance Coverage

Your personal auto insurance policy may also offer some protection during the shipping process.

However, coverage varies depending on the provider and policy, so it’s important to contact your insurance company to confirm what’s included.

What to Ask Your Insurance Company

• Is My Car Covered During Shipping? Ask whether your personal auto insurance policy covers your vehicle while it is being shipped. Some policies include coverage for transport, while others may require you to purchase additional coverage.
• What Is the Coverage Limit? If your personal insurance does provide coverage, ask about the coverage limits and whether they are sufficient to cover your vehicle’s full value.

In some cases, you may need to purchase a special endorsement or rider to extend your coverage during transport.

Your insurance company can help you determine whether this is necessary based on your existing policy.

5. Documenting Your Vehicle’s Condition

Before shipping your car, it’s important to document its condition thoroughly.

This will serve as proof of the vehicle’s pre-shipment condition and can be used in case of any damage claims after delivery.

Steps for Documenting Your Vehicle

• Take Photos: Take clear, high-quality photos of your vehicle from all angles, including close-ups of any existing damage or imperfections.
• Note Any Pre-Existing Damage: Make a written record of any scratches, dents, or other damage before your car is picked up.
• Keep Copies of Documentation: Keep copies of all photos and written documentation for your records. This will be important if you need to file a claim after transport.

6. Filing a Claim for Damage

If your vehicle is damaged during transit, you’ll need to file a claim with the transport company’s insurance provider. Here’s what to do if you need to file a claim:

• Inspect the Vehicle Upon Delivery: When your vehicle is delivered, inspect it carefully for any new damage. Compare the condition of the car to the photos and documentation you took before shipping.
• Report Damage Immediately: If you notice any damage, report it to the transport company right away. They will guide you through the claims process and provide the necessary paperwork.
• Submit Photos and Documentation: Provide the insurance company with photos, documentation, and any other evidence of the damage to support your claim.

Conclusion

Understanding the insurance coverage you need to ship your car to another state is essential for protecting your vehicle during transit.

While most auto transport companies provide basic coverage, it’s important to verify the policy details and consider additional insurance for high-value vehicles.

By documenting your car’s condition and reviewing your personal auto insurance policy, you can ensure that your vehicle is fully protected throughout the shipping process.