Comparing Auto Shipping Insurance Options: Which is Right for You?

Comparing Auto Shipping Insurance Options: Which is Right for You?
Published on March 22, 2023

Auto transport services have become very popular recently, and that’s due to the increased needs and the great number of service providers in the field. However, car owners are still hesitant when handing their car’s key to a stranger, concerned about its safety.

For that reason, auto transport companies try to give clients peace of mind by offering them insurance coverage that protects their vehicles during the transport process. So, what is auto transport insurance, its main types, and how to get the best out of it? These are the questions that the following article will answer.

What is auto transport insurance?

Transport insurance is a policy offered by an auto transport company or an insurance company for accepting responsibility for a shipped car. Yet, clients must remember that shipping insurance policies and their liability aren’t alike. Here’re the main types:

The Main Types of Auto Transport Insurance

1.      Client Insurance

Client insurance is a critical legal document that isn’t only needed for auto transport purposes but for personal ones as well. Vehicle insurance protects a car against any damage, whether during the auto transport process or outside it. The coverage, however, isn’t enough to protect a car during transport.

2.      Carrier Insurance 

Carrier insurance is a required document that no legal auto transport company can operate without, and carrier insurance covers damages that occur during the transport process. Liability varies, however, according to each company’s transport strategy.

Some carrier insurances compensate clients for loss of personal belongings, while others’ insurances are restricted to external damages on the car’s body, scratches, dings, dents, etc.

3.      Broker Insurance 

A broker is a middleman that connects clients with an auto transport company ready to fulfill their orders. Besides the insurance coverage that the auto transport company offers, some brokers collaborate with a third party responsible for providing additional insurance coverage. And that’s to tempt clients to hire them instead of a direct service provider.

What is the Right Auto Transport Insurance?

There’s no right and wrong when it comes to auto transport insurance. Instead, a client must go for insurance that mostly satisfies their needs and ensures their car’s safety. For example, collaborating with an auto transport broker and getting insurance through them could guarantee additional advantages for both the broker and the company. However, in some cases, neither the auto transport company nor the broker will be able to provide a client with the required safety level they strive for. So, the need for additional insurance coverage becomes urgent.

When Should a Car Owner Purchase an Additional Insurance Coverage?

Auto transport insurance policies can differ significantly from one company to another, making it essential for car owners to understand their coverage options thoroughly. This is especially important for high-end sports or classic car owners who may be more concerned about their vehicle’s safety during transport.

Additionally, some vehicles may have expensive accessories such as GPS indicators, parking sensors, and speakers that require specialized coverage. Standard auto transport insurance policies may not provide sufficient protection for such vehicles, making it crucial to consider additional coverage options.

To ensure adequate coverage for their vehicle and accessories, car owners should consider specialized insurance policies that cater to their specific needs. These policies can offer additional protection for high-value vehicles and accessories and may include options such as specialized equipment and higher liability limits.  

How to Get the Best Auto Transport Insurance?

1.      Hire a Reliable Auto Transport Company  

Damage possibilities are there no matter how dependable the auto transport company is. However, the chances are fewer by collaborating with an experienced auto transport company that knows what it’s doing and has been long enough in the market to take good precautions and avoid incidents of amateurs. The right auto shipping company takes full responsibility for the car it ships and doesn’t expose it to the minimal damage possibility.

With an advanced auto transport trailer fleet, a trained team of drivers, above eight years of experience, very reasonable quotes, and a competitive auto transport insurance policy, Tempus Logix stands out as one of the best service providers in the auto transport industry.

2.      Do your Homework

Getting the best auto transport insurance doesn’t only stop at the service provider or the auto insurance company; rather, it’s a collaborative effort that always involves the car owner. Clients must remember that the insurance isn’t the magical spell that will save their car from any possible damage; rather, they must do their part of the deal by properly preparing their car for the auto transport trip.

Emptying the gas tank or draining it to ¼ maximum is recommended to avoid additional fees and fire chances. In addition, clients must always have a clear idea about their car’s pre-shipping state, so they can easily spot new damage and claim insurance coverage. And that’s by carrying on a full car inspection before shipping and documenting everything in writing or pictures. And because most auto transport insurances don’t cover a shipped vehicle’s interior, all expensive removable items must be removed.

The Bottom Line 

An auto transport process is dangerous and imposes many risks on the transported vehicles. However, risks can be minimized by collaborating with a reliable auto shipping company and getting the right insurance coverage. And clients must always remember that the success of auto transport relies on the service provider and the car owner.  

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