Do You Need Insurance to Ship a Car?

Shipping a car can be a convenient way to move your vehicle across cities or states, whether for a job relocation, a new purchase, or selling a car remotely. But when it comes to protecting your vehicle during transit, a common question is: do you need insurance to ship a car? Understanding how insurance works in auto transport is essential to protect your vehicle and your peace of mind.

How Does Car Shipping Insurance Work?

When you arrange auto transport, the shipping company typically includes some insurance coverage as part of its service. This coverage is designed to protect your car from common risks, including accidents and damage that may occur during loading, unloading, and transportation. However, the amount and scope of this coverage can vary significantly depending on the carrier and the type of transport you choose.

This raises an important question: Do you need car insurance to ship a car, or is the carrier’s insurance sufficient?

Is Insurance Required to Ship a Car?

Most professional car shipping companies are legally required to carry liability insurance to cover damages that may occur during transport. This insurance safeguards both the carrier and you, the customer. However, it’s crucial to understand that the coverage provided may not always be sufficient to cover the full value of your vehicle or every possible type of damage.

Before booking, it’s important to carefully review the carrier’s insurance policy to know what is covered and what isn’t. Some policies only cover damage caused directly by the carrier’s negligence and may exclude issues such as weather damage or theft. Knowing the limits of the carrier’s insurance will help you decide if you need additional coverage.

What About Your Personal Auto Insurance?

Another factor to consider is whether your personal car insurance policy offers protection during shipping. Many personal policies do extend coverage when your car is being professionally transported, but this can vary by insurer and policy details.

Contact your insurance provider to find out if your policy covers potential damage during shipping and whether you need to add any endorsements or temporary coverage. Understanding your personal policy’s scope can help you avoid paying for duplicate coverage or, conversely, being underinsured.

When Should You Consider Additional Insurance?

Whether you need extra insurance depends mainly on the value of your vehicle and your level of comfort with risk. If you own a high-value, luxury, or classic car, additional insurance beyond the carrier’s basic coverage is often recommended. The same applies if your auto insurance does not cover transport damage or if you want extra peace of mind against uncommon risks such as extreme weather, theft, or vandalism.

Many shipping companies offer optional insurance upgrades, and you can also purchase third-party insurance explicitly tailored for auto transport. These options provide enhanced protection and often come with lower deductibles and more comprehensive claims processes.

Protecting Your Vehicle During Shipping

Aside from insurance, there are practical steps you can take to help safeguard your car during shipping. Before handing over your vehicle, thoroughly document its current condition with photos and written notes. This record will be crucial if you need to file a damage claim. Removing personal belongings from the car is important, as they typically aren’t covered by shipping insurance.

Also, ensure the car is clean, as this makes it easier to spot any damage upon delivery. Ensure that any loose parts, such as antennas or spoilers, are securely fastened or removed to prevent damage during transit. Keeping your gas tank about a quarter full helps reduce the vehicle’s weight and potential hazards on the road.

Tip: For best results, see guides on how to prepare a car for shipping.

Open vs. Closed Car Shipping: What You Need to Know

When shipping your car, you typically have the option to choose between open and closed (or enclosed) transport. This choice affects how well your car is protected, the cost, and your insurance needs.

Open Car Shipping

Open transport means your vehicle is placed on an open trailer, exposed to the weather and road conditions. Your car can be exposed to rain, dust, and even small debris, which may cause minor scratches or chips. Because the trailer is open, the car is also more visible and accessible, which slightly increases the risk of theft or vandalism. Open shipping is the most common and usually the least expensive option. Due to these factors, you may want to consider purchasing extra insurance to cover potential weather-related or road damage.

Closed Car Shipping

Closed shipping means your car is transported inside a fully enclosed trailer. This protects it from weather, dust, and road debris and adds an extra layer of security against theft or vandalism. This method is often chosen for high-value, classic, or luxury cars because it offers the best protection. It generally costs more, but many consider it worth the peace of mind. Insurance options are usually more comprehensive for enclosed transport, matching the added protection it provides.

Understanding these differences helps you determine how to protect your vehicle during shipping and whether you may need additional insurance based on your chosen mode of transport.

What If Your Car Gets Damaged?

If damage does occur, it’s important to act quickly. Document the damage thoroughly and notify the shipping company immediately to file a claim. Providing clear photos and a detailed inspection report will greatly support your case. A reputable car shipping company will have a transparent claims process and work with you to resolve issues fairly, quickly, and efficiently.

Final Thoughts: Do You Need Insurance to Ship a Car?

In summary, do you need insurance to ship a car? Yes, insurance is a vital part of ensuring your vehicle’s safety during transit. While most carriers provide some form of insurance, the coverage may not always be comprehensive or enough to cover your vehicle’s full value. It’s wise to check your car insurance policy and consider additional insurance if necessary.

By understanding your insurance options and preparing your vehicle properly, you can enjoy a smooth and worry-free car shipping experience. Protecting your investment every mile of the way is worth the extra effort and precaution.

Also read: What Documents Do You Need To Ship a Car?

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