Car Shipping Insurance: Some Tips

Car Shipping Blog

Insurance Protects Your Vehicle During Transport

Life isn’t perfect, and from time to time, unfortunately there are cases when a vehicle might get damaged during a shipment. That’s what insurance is for. There is no need to worry about the damage to the vehicle because all carriers require insurance to operate and ship vehicles. Also, you can search the company name on the FMCSA website to double-check their insurance information to make sure that you don’t go with a company that does not have insurance.

The Bill Of Lading

Before shipping your vehicle you are required to fill out the ‘Bill Of Lading’ and mark any damages that were present on the vehicle before the shipment. This gets you and the driver on the same page as far as any damages on the vehicle. Make sure to do a thorough inspection. This is a standard mandatory practice that starts the shipping process. In an essence, you are ‘releasing your vehicle’ to the carrier. Upon delivery, you mark on the Bill Of Lading any damages that occurred during transport. The insurance companies use the Bill Of Lading as a reference for the insurance claim and it is the contract between the carrier and the shipper.

Who is liable for the damage?

A lot of times the shipper thinks that it is the Broker is liable for these damages, but almost in every case, the Auto Transport Broker is not responsible for any damages during the shipment as they are just an Agent. The Carrier assumes all responsibility for any damages during the shipment as they are the ones actually moving the vehicle. Brokers find drivers for the best price possible, and they do check the insurance of companies before they pair a shipper with a carrier, but sometimes Carriers try to beat the system and do not update their insurance information. So it is best to double check this info on the FMCSA website, and read online reviews about the particular company you are going with as it is Your responsibility to do your research before you release a vehicle to a carrier.

Better Safe Then Sorry

That’s what websites like are for. This will ensure you don’t make a mistake and go with an unreliable company, or with a company with no insurance. Most shippers ship with a broker because the drivers are very busy, and the carriers typically rely on 3rd party ‘load boards’ to fill their loads that consumers do not have access to.  It is generally a good idea to avoid shipping a vehicle if you know that bad weather is going to be in the path of the shipment because of obvious hazards bad weather brings. In the rare case that some road debris, like rocks , pebbles, or other road hazards damage your vehicle during shipment you would want to be shipping with one of the more reputable companies, as they know what to do in these situations, and can make the claiming process smooth.

Do Your Research Before You Ship

We truly hope that you never run into a situation like this, but as in life, sometimes unexpected things happen out of our control. Make sure to read up on the companies on our website, as well as look the up on the FMCSA site, and you should be fine. Please share this article so that others will be in the know when it comes to auto shipping. Thanks for stopping by our blog. Come back soon for more auto transport tips!

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