Car transport is getting your car from point A to point B. Whether you’re relocating, heading to a car show, or buying a vehicle online, sometimes driving isn’t an option.

Auto shipping companies have insurance to protect you and your vehicle. But how exactly does it work?

Damage

If you’re shipping your car rather than driving it yourself, you must ensure it’s secure. Fortunately, auto transport businesses with insurance, such as RCG Logistics, can protect your car from harm during loading, unloading, and transit. It’s important to discuss your auto transport company’s policy and check with your car insurer about physical damage coverage for your vehicle, including medical payments (PIP), collision, comprehensive, and uninsured/underinsured motorist. The cost of these policies can vary based on factors like the type of vehicle, repair costs, and theft history.

When you hand your car to a carrier, the initial inspection will note any existing damage. It is done so that the insurance provider can document the condition of your vehicle and be able to reimburse you should damage occur during the transportation process.

Besides liability insurance, you should also ask a broker whether they have cargo insurance. It is the type of insurance that covers freight hauled by truckers and can fill in any gaps left by liability or other insurance policies. Ideally, any good car transport company will have this insurance and be willing to share the procedure with you. The best thing to do is to exercise caution when dealing with any company that withholds this information since it could be a red flag.

Theft

Whether you have comprehensive car insurance or just liability coverage, your vehicle is protected during car shipping from theft. It is because stealing an insured car requires equipment and expertise, making it risky and expensive. Furthermore, odometer tampering is illegal, so even if the thieves successfully attempt to steal your vehicle, they will still violate the law.

If you have comprehensive auto insurance, a stolen car can be found and fixed up to its actual monetary worth from when it was stolen. It is an excellent reason to keep your car insurance current rather than dropping it. Consider adding optional car transport or supplemental car insurance to your policy, which will add to the basic coverage in the event of a loss.

While comprehensive auto insurance will pay for the cost of a new replacement car (as long as it is the same make and model as the one that was stolen), most policies do not cover the cost of stolen personal property. However, many homeowners and renter’s insurance policies will cover these items, so it is a good idea to check your policy to see what is covered.

When preparing your car for shipping, it is vital to remove any personal items from inside the vehicle. It is because the auto shipping company will not be responsible for damages to personal belongings left inside the car.

Liability

Depending on the company you ship your car to, their liability insurance may only cover some things that could happen during transport. If you have a high-value or antique vehicle, looking into additional coverage options is essential to ensure your car is fully covered. Most reputable companies will gladly provide you with their policy information and answer any questions.

If you find that the carrier’s liability insurance needs to be improved to protect your vehicle, ask them if they have cargo insurance. This type of insurance covers the freight hauled by truckers and can fill gaps where liability does not. Some auto transport brokers also offer supplemental car shipping insurance, which is typically provided for a small fee. 

Ensure the insurance policies of both the carrier and the broker are in writing. It will assist in preventing any disputes or miscommunications during the transportation process. In addition, be sure to check the carrier’s MC number and license to ensure they are insured to transport your vehicle. If the airline does not have an MC number, their insurance is likely invalid, and you should look for another company to transport your car.

Collision

Your collision insurance will pay for the damage when your automobile collides with another car or an object. It also reimburses you for the cost of your rental car if you rent one while yours is being repaired. This coverage is often optional, but if you are leasing or financing your vehicle, it may be required by your lender.

The benefits of having the right car insurance far outweigh the cost. Car accidents can result in significant out-of-pocket expenses, such as medical bills and repairs to your car. You can save thousands of dollars in the long run by paying a small amount for peace of mind and the ability to get back on the road.

Asking a car shipping business about their insurance policies is crucial if you consider hiring them. While most carriers have around $350,000 of cargo and liability coverage, you should still inquire about any supplemental coverage they offer for your vehicle during its time on the trailer.

You can also consider purchasing an umbrella policy, which provides additional protection against expensive liability claims. For instance, if the driver of the other vehicle in an accident you cause makes a lawsuit against you for $750,000, your auto insurance only covers up to $500,000. Your umbrella policy would pay the difference.