Auto Transport Insurance Requirements in 2023

Auto Transport Insurance Requirements in 2023
Published on May 4, 2023

The auto transport process is a complicated, dangerous one; it’s a real challenge for car owners and auto transport companies. Transporting a car requires high expertise, sophisticated tools, and great collaboration among all parties involved.

However, even if all those standards are met, no one can guarantee 100% safe car shipments, as there are many uncontrollable factors that no auto transport company, no matter how professional, will be able to predict. That’s why federal law requires all auto transport companies to maintain car shipping insurance.

Auto transport insurance guarantees clients’ rights and assures their car’s safety even in case of an accident. There are many question marks on auto transport insurance, and not all car owners might know what insurance is and its requirements. So, here, we’re highlighting everything a car owner should know about car shipping insurance.

What is auto transport insurance?

Auto transport insurance is a document that protects the shipped car against accidents such as collisions, fires, clashes, etc. In short, auto shipping insurance covers damages that happen during the load and unloading of the vehicle, the damages caused by carrier drivers or carriers.

However, auto transport insurances are never the same, as different companies offer different transport coverages. So, clients must always read the policies and terms and conditions of the auto transport company they hire.

Auto shipping insurance requirements 

For an auto transport company to be able to take out insurance, it has to have liability insurance and an MC, and a DOT number.

All licensed and certified auto transport companies are required to carry insurance. However, not all service providers offer the same insurance; a company’s liability varies from one state to another.

Some companies take responsibility for the car’s safety during pickup, delivery, and while in transit; on the other hand, other companies only have coverage for vehicles while in transit.

Auto transport insurance claim 

Once clients are fully acquainted with a company’s terms and conditions, they will know what damages they could claim for their coverage. However, car owners must know that they won’t be able to take advantage of the insurance coverage if they don’t do their part of the deal.

A car owner must inspect their car’s state before the shipment and document all issues, such as scratches, dents, discolorations, ships, etc. Damages allowed to include in the document are the exterior ones; a sputtering engine, a dead battery, a failed alternator, etc., aren’t the company’s responsibility.

Any issues found on the car’s exterior should be noted in the Bill of Lading. The Bill of Lading is a document that acknowledges the reception of cargo; both the car owner and the carrier driver will point out external damages and include them in the document, so they can compare the vehicle’s pre-shipment and post-shipping state.

If any new issue was found on the car’s body, the car owner must take pictures and videos of the damage and contact the auto transport company immediately. Clients who discover new damage after signing the Bill of Lading will lose their right to claim insurance coverage. So, a full, cursory inspection must be carried out before receiving the vehicle or signing the Bill of Lading.

How to avoid dangers associated with auto transport insurance?

1.      Hire a reputable auto transport company

Hiring a reliable auto transport company is the first step towards ensuring a safe trip for the shipped car and fair insurance coverage in case of damage. Tempus Logix is a trustworthy auto transport company that has been shipping all kinds of vehicles for more than eight years.

This company has been connecting thousands of clients with the most professional auto transport carriers in the United States. The quality of the auto transport services Tempus Logix guarantees is unparalleled, and the feedback and reviews section on its website is infallible.  

2.      Thoroughly read the company’s terms and conditions.

Insurance coverage isn’t identical in all auto transport companies; terms and conditions can dramatically vary from one service provider to another. That’s why a client must carefully read the terms and conditions of the company they’re about to hire, and that should be before ordering an auto transport quote.

Knowing about all details will enable a car owner to efficiently prepare their vehicle for the trip and stay in anticipation. 

3.      Buy additional auto transport insurance if required

Sometimes, an auto transport company doesn’t provide sufficient coverage suitable for the level of protection a car owner opts for. In addition, some cars might have special accessories or luxurious furniture that they want to be as safe and protected as possible.

That’s where the role of additional auto transport insurance comes to light. Additional insurance ensures a car owner the full level of protection and safety for their car that an auto transport company’s insurance might not provide.

The bottom line

Dealing with a reputable auto transport company is the first and last key to ensuring a safe car trip and a great commitment in case of an accident occurrence. Auto transport insurance is a great assistance for clients. However, they have to know how to get the best of it and who to deal with. 

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