Everything you Need to Know about Auto Transport Insurance Policies

Everything you Need to Know about Auto Transport Insurance Policies
Published on December 7, 2022 at 11:00 am GMT

A car is an expensive, cherished assist that no one would risk exposing to the tiniest risk. However, in cases of auto transport, a car owner has to compromise and be able to let their car find its way to the next destination on a trailer’s back.

Even though it seems like a scary and risky adventure, auto transport companies have figured out a way to ensure the shipped cars’ safety against some types of damages, and that’s by providing insurance.

What is Auto Transport Insurance? 

Auto transport insurance is an indemnity document that protects the shipped vehicles against damages that might occur during the transport process.  

What does Auto Transport Insurance Cover? 

Auto transport insurances cover only limited liability. For example, damages caused by natural disasters, such as storms, heavy rain, or snow, aren’t the company’s responsibility. In addition, the service provider doesn’t cover any personal belongings loss or damage. Read more about Shipping Car with Personal Items.

Mechanical issues caused by poor maintenance from the car owners’ side aren’t included in the insurance, as well. Auto transport companies’ insurances take responsibility for damages caused by drivers or carriers while in transit merely.  

Are Auto Transport Insurances Enough to Ensure a Car’s Safety? 

It’s worth noting that insurance policies differ from one service provider to another. For example, some might cover personal items loss while others don’t. Some provide a bigger compensation budget than others, so it’s on the car owners to figure that out and go for the best offer.  

To be able to do so, they must read the company’s terms and conditions before doing business. Suppose the insurance isn’t enough or doesn’t match their car’s needs. In that case, a client can purchase additional insurance to provide extra protection for things that aren’t there in the official insurance document.

Additional cargo insurance usually has no obligations and covers the entire value of the shipped vehicle in case of damage or an accident.  

How to Ensure that Auto Transport Insurance is Reliable? 

Some fraud auto transport companies shrink from responsibility as soon as they deliver the car to its owner, and they don’t provide the compensation they promised or even admit their mistake.

So, to avoid such unpleasant scenarios, car owners have to do their homework by confirming the company’s reliability and the insurance’s efficiency before placing their auto transport order, and that’s by following the following tips: 

1. Find a trustworthy auto transport company

The auto transport industry has become crowded recently, and service providers have become many. However, not all those in the market are worthy of trust.  

Dealing with a reputable, professional auto transport company is the first step to ensuring the shipped cars’ safety and a commitment to insurance policies.  

Tempus Logix is one of the most professional auto transport companies in the market now. With above 35k successful shipments, plus eight years of experience, and a wide network of 25.000 carriers distributed all over the US territories, Tempus Logix is always a safe bet.  

2. Ask for a copy of the insurance

The FMCSA doesn’t allow any auto transport company to operate unless it carries an insurance certificate. So, never place an order until they present a valid insurance certificate.

Keep in mind that a company working without a valid certificate is not trustworthy; it won’t be able to repay any damage, no matter how minor. Some clients, however, fall for the price trap, as unlicensed carriers impose very low prices for transport services. But, in the end, car owners end up paying a fortune, making up for the damages the amateur company has done to their car.  

3. Read the company’s terms and conditions

As mentioned above, insurance policies aren’t the same for all service providers in the market. So, even if the company is reputable, professional, and reliable, giving a thorough read to its policies is a must. Having a clear idea about the company’s insurance will allow clients to evaluate their options and decide whether to buy additional insurance or keep with the company’s.  

4. Prepare your car for shipping

Keeping the sipped car in its pre-shipping state and delivering it safe and sound to the next destination isn’t only the company’s responsibility. A car’s owner has to involve themselves in the process, and that’s by preparing their car for shipping.

Pre-shipping preparations include removing all personal belongings and car accessories – if the insurance doesn’t cover them- making all the maintenance work and cleaning the car.

Read more about How to Prepare Your Car for Shipping.

5. Sign the bill of Lading

The bill of Lading is a document that car owners sign once their car is picked up and delivered again. A car owner and the driver inspect the shipped car together before the initial pick-up and point out all existing damages and scratches, so both parties are fully acquainted with the car’s state.

Once the vehicle is delivered, the car owner inspects it again and compares it with the pre-shipping state using the initial bill of Lading. If the damage of any kind is found, the client can file for insurance coverage and get compensation. 

The Bottom Line

Auto transport insurances are the way to ensure clients’ convenience and enable them to trust the service provider. However, getting the best auto transport insurance isn’t possible without collaborating with a reputable auto transport company, and Tempus Logix will never let its dear clients down.

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