Insurance Coverage is a Requirement

For most of us, our vehicles are second only to our home as our most expensive commodity and like our homes; we insure our vehicles against accidents, thefts and all other types of possible damages. But, what many people don’t understand is that when they load their cars onto an auto transport carrier for shipping to another loaction, many policies may or may not provide the protection they’re expecting.

To make matters more confusing, some auto shipping companies include a waiver in their contract exempting them of any responsibility for potential damage that may occur while in their possession. It’s always smart to double check the car shipping company’s policy prior to agreeing to the contract. Here are a few things you should know about auto transportation so your car can get where it needs to go without unexpected hassles and costs.

• Request proof of insurance from the car shipping company:
  It’s a law enforced by the FMCSA, that auto transport companies carry a valid insurance policy and they should be able to provide when asked to do so. You should also ask questions related to their policy at this time. Find out if they cover any damage that occurs during the car shipping process, if the entire car is covered or just certain parts or if you will be required to pay a deductible if damage occurs. 
• Make sure to get everything in writing:
  Before you agree to the terms of an auto transport service, get any special agreements or considerations in writing. This will protect you in the event that something unexpected happens, especially if they are providing you with a service or agreeing to something that’s not indicated in their regular contract. 
• Double check with your own car insurance company:
  Depending on your policy, your own auto insurance company may cover your vehicle while it is in transport, but don’t assume this is so; you have to check to make sure. Ask whether or not your same coverage applies while the vehicle is being shipped and whether or not you have to supply the insurance company with any form of notification from the car shipping company.  
• Remove all loose items within your vehicle:
  Most car shippers will not cover damage to a vehicle’s interior, so to reduce the risk of this happening, remove all of the loose items from your vehicle before handing over the keys. This includes all removable electronics, extra change, CDs or cassettes and anything else that could possibly become airborne. By removing your loose items, you will also reduce the risk of a break-in theft, which is also not covered by most car shipping companies. 
• Assist the driver with the vehicle inspection at pickup and delivery:
  Before the auto transport company takes possession of the vehicle, they will perform a thorough inspection of it to make note of any existing damage. If possible, you should be on hand when the inspector performs this inspection. It is also a good idea to take photographs of the vehicle to record its condition prior to the shipping company taking possession of it.  
• What is the Bill of Lading?
  Once the vehicle is delivered, the owner will have to fill out the Bill of Lading, which is essentially a condition report that details the vehicle’s condition upon arrival. Be sure to check the vehicle thoroughly, including underneath the vehicle. It is also smart to start the engine to check for any signs of mechanical damage. If the vehicle is delivered at night, check it under bright lights so you can see as much as possible because once you sign off on the Bill of Lading, the transfer is complete and if you missed something, the auto transport company won’t be liable. If you find signs of damage, include it on the Bill of Lading and have the driver sign off on it. Afterward, contact the shipping company directly to inquire about reimbursement. They should be able to direct you in filing a claim with the car carriers insurance provider. 

It is the responsibility of the customer to confirm the insurance prior to pickup. By taking the above advice, you will find that your auto transport process will be safe and insured in case of any damages during shipment. 

Learn More about Fully Insured Auto Transport