Your Ultimate Guide To Car Shipping Insurance

When traveling or moving to a new location, driving your car yourself is not an option to consider because of a lot of mishaps could happen along the way. Therefore, the idea of shipping your car becomes the best alternative to driving yourself. This means you have to employ the services of a shipping company.

While the car is in transit, damages rarely occur but that doesn’t mean they don’t happen. Therefore, a good transport company insures your car and this covers the risk of any damage that may likely occur. This article will be a thorough guide to what it means to insure your car during shipping and some factors to consider before engaging the services of a transport company.

What Car Shipping Insurance Is

Car shipping insurance is the coverage provided for your vehicle from the pickup time to when it gets to its drop-off point. The reason for ensuring the vehicle is to put the customer’s mind at ease if damage occurs to their car during the shipment. So, if you’ve been wondering “Do you need insurance to ship a car?” the answer is yes. This company policy ensures you don’t spend money on the potential damage that might occur.

Insurance Requirements for Shipping Your Vehicle

There is no standard format or pattern that these transport companies use when it comes to insuring a vehicle. Every company’s requirements differ one from another. They have their specifications and the level of damage they provide coverage for. Therefore, you need to take note of the requirements provided by the company you intend to use.

As someone who requires their services, you need to ask about certain factors like deductibles, limit of coverage, and so on. Also, ask if there is any need to pay for additional damages. This is done to ensure you are familiar with all the requirements.

Car Shipping Insurance Types

Transport coverage comes in different types. Having an understanding of their types and differences will help you differentiate their policies and make sure you choose a package that offers the necessary level of coverage throughout the trip. Let’s take a look at them, shall we?

Customer Insurance

It is a coverage that is taken out for the vehicle by the company insuring your vehicle. Most insurers offer this coverage when the vehicle is transported through an auto carrier. However, it is important that you let your personal broker know and also confirm if the insurance covers any damage that may occur while the vehicle is with the transport company.

Carrier Insurance

This type of coverage is given by the transporter who bears whatever damage happens to the vehicle. Although all transport companies must provide coverage, ensure that the service you are using complies with the mandate. Before committing to have your vehicle transported by the carrier, request coverage information.

Broker Insurance

This type is offered by brokers who serves as intermediary between the shipping companies and their customers. The brokers work as middlemen of the transport operations and they effectively manage the process to make sure customers enjoy an excellent shipping experience. Brokers don’t usually have coverage plan but they provide alternatives that customers purchase to cover for anything that goes otherwise while shipping. 

What to Consider Regarding Insurance When Hiring a Car Shipping Company

You must understand the indemnification policy of a car transport company when you want to ship your vehicle. Visit for more details on indemnification policy. When the need arises when you need to choose a transport company, ensure that you go through the steps below to make sure that the process is smooth.

Ask for the Proof of Insurance

Every good transport company is always happy to make available the proof of their coverage plan for every vehicle. Also, they are willing to answer whatever questions you may have about their policy. In addition, you can contact your insurer to check if the company is insured. When you come in contact with a company that hesitates to provide its insurance proof, you should look for another.

Make sure all Agreements are Documented

Proper documentation should be done for reference purposes in case there is a breach of agreement or contract. What should be included in the documents are the timeframe of coverage, the coverage amount, and so on. Having all these will serve as proof in case it goes otherwise.

Verify with your Insurance Company

Apart from confirming the coverage of the carrier, verifying with your car insurance company might be helpful. This is because some policies are initiated when the vehicle is in transit. So, you need to ask if the insurance covers the shipping of the car and other areas also ensure you submit all relevant documents to provide your vehicle with maximum security.

Removal of Personal Belongings

Personal belongings should not be transported with your car as most companies do not provide coverage for it. If those items experience any damage, you are left to foot the bill for that. Therefore, to ensure that damages are avoided, remove your items and package them properly.

Inspection Report 

You must be present when the vehicle is being inspected so that you will be able to confirm any form of damage that was noted in the report. Click here for more details on the inspection report. The car should be washed and kept clean for visibility. Also, taking pictures of any damage before shipping and signing a copy of a coverage report will serve as proof.


You must insure your vehicle before shipping. This would relieve you of any extra expenses you might have to deal with when damages occur. Going through the details of this article will help you have a smooth and excellent shipping experience.

Also, Read – What To Know When Buying A Car Out Of State

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