Auto Transport Insurance: What You Need to Know Before Booking.

Booking an auto transport without a proper understanding of transport insurance can be one of your worst nightmares as a car owner. However, understanding auto transport insurance will enable you to experience stress-free shipping, save your wallet, and gain peace of mind.

Here is what you need to know before handing your vehicle over to a carrier.

First, understand what "auto transport insurance" really means.

Some vehicle owners assume they know what auto insurance means, but the statistics say otherwise.  A recent survey of U.S. policy-holders showed that 86% believe they understand their insurance policies well, but in reality, they don't.  Here's what it really means: auto insurance is a regulation that protects both car owners and carriers from damages or losses while they are transporting.  Simply put, if your car is loaded and anything happens to it, the law protects you from having to cover the damage (based on the agreed terms). 

But here's what you might not know: 

• Not all carriers carry enough courage. 
• Some coverages may not be involved while you think your car is fully covered.

The Two Types of Insurance You Must Understand

1. Carrier Liability Insurance: This is a type of insurance that is offered by a carrier to cover (in case of any damage or theft) your vehicle while loading, unloading, and on the road.  It will interest you to understand that carrier insurance often doesn't fully cover your car. Some carriers only cover up to $250,000 for the entire load - not per vehicle. 
2. Cargo Insurance: Cargo insurance also protects you as an auto owner from potential carrier risks. It differs from Carrier liability insurance as it only covers what is listed in its policy. 

 Questions you should ask when dealing with cargo insurance: 

• How much cargo is available per vehicle? 
• Does it include weather damage? (Some don't)
• Are there deductibles? Who pays them - you or the carrier? 
• Does it cover theft, vandalism, and flooding? 

Get these answers to sustain your peace of mind.

Your Personal Auto Insurance May Help Too

Personal auto insurance can be super resourceful in most cases. Just in case you're the one at fault for the damage or not, personal auto insurance covers the damages. Your "personal insurance" can sometimes act as secondary coverage during transport.  Call your insurer and ask: "Does my comprehensive policy cover the car while it's transported?" This will help you know your stand just in case you need additional coverage.

Take Detailed Photos Before Pick-up 

One of the crucial steps you must not overlook is a record of everything about your vehicle, especially before pick-up. 

Take photos of: 

• Full exterior 
• Close-up of panels 
• Wheels & rims
• Interior 
• Undercarriage if possible 
• Odometer reading 

Ensure you captured all photos during the day for good lighting. Because if you ever need to file a claim, this step makes all the difference.

Ask the Transport Company for their Certificate of Insurance 

Reputable carriers are always happy to show you their insurance certification for social proof. Avoid any company that delays showing their insurance. Those who cannot provide insurance certification are either frauds or underqualified.

Understand what is not covered: 

Aspects that are mostly not covered include: 

• Preexisting damage 
• Personal items inside the car 
• Minor cosmetic wear and tear caused by road dust 
• Mechanical issues, such as engine failure and other internal damage.

Open vs Enclosed Transport Affects Coverage: 

Open Carrier: 

• It is cheaper and most common, but: 
• It is often not fully insured 
• Claims may also take longer because multiple cars are transported together. 

Enclosed Carrier: 

• An enclosed carrier is much more expensive, but it's the best protection with 90% lower risk of damage.

Always Read the Bill of Lading (BOL) Carefully 

The bill of lading is a legal document describing: 

• Your vehicle's condition before loading 
• The mileage 
• Insurance clauses

Never sign a bill of lading blindly. Properly inspect your vehicle and take pictures.

It's your responsibility before pick-up and drop-off.

Final Thoughts 

Auto insurance transport shouldn't be difficult to understand for car owners - and that is the reason for this blog. Now, you can have a stress-free shipping experience knowing what is covered for your peace of mind. 

If you need a reputable and reliable auto carrier to ship your car, don't go far - use Revoway and enjoy premium peace of mind.

FAQ

What's the difference between carrier liability insurance and cargo insurance?

Carrier liability insurance covers damage or theft while loading, unloading, and on the road, but it's often capped for the entire load rather than per vehicle (sometimes as low as $250,000 total). Cargo insurance only covers what's specifically listed in the policy, so you need to ask about per-vehicle limits, weather damage, deductibles, and coverage for theft or flooding.

Will my personal auto insurance cover my car during transport?

It can act as secondary coverage in some cases, regardless of fault. Call your insurer and ask directly: "Does my comprehensive policy cover the car while it's transported?"

What should I do before handing my car over to the carrier?

Take detailed photos in daylight of the full exterior, close-up panels, wheels, interior, undercarriage, and odometer reading. This documentation is essential if you ever need to file a damage claim.

What does auto transport insurance typically not cover?

Preexisting damage, personal items left in the car, minor cosmetic wear from road dust, and mechanical issues like engine failure are generally excluded.

Does open or enclosed transport offer better insurance protection?

Open transport is cheaper but often not fully insured, and claims can take longer since multiple cars ship together. Enclosed transport costs more but offers about 90% lower risk of damage and stronger protection overall.