Car Shipping Insurance Coverage Top Questions

Car Shipping Insurance Coverage Top Questions
Published on July 28, 2023

Vehicles are precious assets, and owners strive to ensure their utmost protection during auto transport. Auto shipping companies in the United States are legally required to provide basic and liability coverage for vehicles during shipping. Otherwise, auto transport would be more complicated when entrusting the car to an uninsured auto shipper.

One of the most effective ways to ensure contracting with the right auto transport company is by asking the right questions. Asking questions about the company’s experience, license, insurance coverage, and pricing can help car owners understand everything and make informed decisions.

This article will highlight the importance of auto shipping insurance coverage and address the top questions to ask an auto shipping company about their insurance coverage.

The Importance of Auto Shipping Insurance Coverage

No one would have their vehicle transported from one point to another without obtaining adequate insurance. This is simply because the car will be exposed to several elements and could be damaged in transit. So, if damage or loss occurs during shipping, the auto shipping insurance coverage compensates the owner.

Nevertheless, by emphasizing the importance of insurance coverage for vehicles in transit, we are not confirming that vehicles will undoubtedly be damaged. Actually, car damage cases while in transport are quite rare. But as the saying goes, being prepared is better than sorry. So, whenever you want to ship a vehicle with an auto shipping company, ensure it provides adequate insurance to cover your car’s needs.

Tempus Logix is a top-rated auto shipping company that ships all vehicle types across the states. In addition, we have a big network of licensed, experienced, and insured carriers, with cargo insurance reaching $1,000,000. With over eight years of experience in the auto shipping industry, Tempus Logix has moved over 45,000 vehicles across the country and has collected more than 1000 online reviews from satisfied clients.

Given that auto shipping insurance coverage is important, it is also important that car owners ask their auto shippers relevant questions about their vehicles’ coverage to obtain the right protection.

Top Questions About Auto Transport Insurance Coverage

The more questions car owners ask about the car’s insurance when transported, the more they can understand what goes into coverage. Here are the top questions car owners should ask their auto shippers about insurance coverage:

What Types of Insurance Coverage Do You Provide?

When shipping a car, knowing whether the auto shipper is a broker or carrier is crucial to determine what type of insurance must be provided. Generally, auto shipping companies provide two main types of insurance coverage: basic and additional.

The difference between the two types is mainly the amount of coverage a customer obtains, which depends on the amount of coverage the company carries. Car carriers usually provide basic coverage for transported vehicles, covering basic damages during transport, loading, and unloading.

Car owners sometimes seek more comprehensive insurance coverage, especially when shipping high-value cars long distances. In this case, purchasing additional insurance coverage can improve the cars’ security, which auto shipping brokers usually provide. Also, additional insurance coverage pays for gaps in the basic coverage that doesn’t fully cover the car’s value.

Most importantly, not all companies offer additional coverage, so it is recommended to ask the specific auto shipping company about the types of provided coverage in advance.

What Are the Company’s Policies Regarding Insurance Coverage?

Car owners need to understand what their auto shipping company is responsible for and what damage they will cover during transportation. Each auto shipping company has a dedicated policy regarding insurance coverage limitations.

However, most of the time, auto shipping companies claim responsibility for car damage during transportation caused by the driver or the company’s employees. After an official delivery and approval, the company denies responsibility for any damage found later.

Moreover, most auto shipping companies don’t cover damage caused by severe natural conditions, cars’ bad condition before shipping, or items left inside the car. So, owners should check the specific terms and conditions of insurance coverage the auto shipper provides to make the necessary arrangements.

How Do I File a Claim in Case of Loss or Damage?

Clients must be familiar with every aspect of car shipping, including what they can do if the auto shipping company damages their cars. Car owners should ask the auto shipping company about the process of filing a claim to protect their assets in case of damage.

Generally, the Bill of Lading documents the car’s condition before and after delivery. When the car reaches the new location, any new damages will be found during the inspection. Then, clients can record the found damages in the Bill of Lading and provide ample evidence of the car’s condition before and after shipping. Claims must be filed within 24 hours after damage is spotted. After documenting everything in the BOL, clients can submit a claim for damages and wait for approval to receive compensation.

Ultimately, obtaining adequate insurance coverage is crucial to protect the car during transport. Car owners should know everything related to the company’s insurance coverage policies to avoid scams and be prepared for all circumstances.

When shipping a vehicle with Tempus Logix, never hesitate to ask all the questions you have in mind about the insurance policies and coverage.

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