Auto Transport Insurance & Coverage | Advantage Auto Movers

Auto Transport Insurance & Coverage: What You Need to Know

At Advantage Auto Movers, vehicle protection is not an afterthought. It is central to our service commitment. Every shipment we coordinate is covered by comprehensive cargo insurance, and our team ensures that coverage levels meet or exceed industry standards. This guide details the insurance protections in place for your vehicle.

Types of Auto Transport Insurance

1. Carrier Liability Insurance (Required by Law)

Every auto transport carrier operating in the United States is required by the Federal Motor Carrier Safety Administration (FMCSA) to carry cargo insurance. This is not optional. It is a legal requirement for maintaining operating authority.

• Coverage Amount: Typically $100,000 to $250,000 per vehicle for open carriers
• Enclosed Carriers: Usually $250,000 to $500,000 or higher per vehicle
• What It Covers: Physical damage to your vehicle during loading, transit, and unloading
• Who Pays: The carrier’s insurance company handles valid claims

2. Supplemental (Gap) Insurance

Supplemental insurance, sometimes called gap insurance, provides additional coverage beyond the carrier’s standard policy. This is worth considering for high-value vehicles.

• Coverage Amount: Typically $50,000 to $500,000+ additional coverage
• Cost: Usually 1-3% of the declared vehicle value
• When to Consider: If your vehicle’s value exceeds the carrier’s coverage limit
• Providers: Available through third-party insurers specializing in vehicle transport

3. Your Personal Auto Insurance

Your own auto insurance policy may provide some coverage during transport, but this varies widely by insurer and policy type. Contact your insurance provider before shipping to understand what your policy covers during transit. Many personal policies exclude damage that occurs while a vehicle is on a carrier.

Coverage Amounts Explained

Transport Type	Typical Coverage	Maximum Per Vehicle	Deductible
Open Carrier (Standard)	$100,000-$150,000	$250,000	$0-$500
Open Carrier (Premium)	$150,000-$250,000	$500,000	$0-$250
Enclosed Carrier	$250,000-$500,000	$1,000,000	$0
Supplemental/Gap	Varies (added on top)	$500,000+	$0-$1,000

How to File a Claim: 5 Steps

Step 1: Document Damage at Delivery

When the carrier delivers your vehicle, you will do a joint inspection with the driver. This is your single most important moment. Carefully compare the vehicle’s condition against the Bill of Lading (BOL) that was completed at pickup. Note ANY new damage, no matter how minor, directly on the delivery copy of the BOL before signing.

Step 2: Take Photographs Immediately

Photograph all damage from multiple angles with good lighting. Include close-ups and wide shots showing the damage in context. Make sure photos are timestamped. Take at least 10-15 photos of any damage, and include photos of the BOL showing your written notes about the damage.

Step 3: Contact the Carrier Within 24 Hours

Notify the carrier in writing (email preferred for documentation) within 24 hours of delivery. Include your order number, the driver name, the delivery date, a description of the damage, and your photographs. Most carriers have a formal claims process that begins with this notification.

Step 4: Obtain Repair Estimates

Get 2-3 written repair estimates from licensed body shops. The carrier’s insurance company will typically want to see multiple estimates. Keep all paperwork and do not authorize repairs until the claim is being processed, unless the carrier instructs otherwise.

Step 5: Follow Up and Resolve

Most legitimate claims are resolved within 30-90 days. The carrier’s insurance company will review the BOL, photographs, and repair estimates. If the claim is approved, you will receive payment for repairs. If you disagree with the outcome, you can escalate through the FMCSA complaint process or pursue the matter through small claims court.

Important: Never sign the delivery BOL as “no damage” if you see new damage. Once you sign off on a clean delivery, filing a claim becomes extremely difficult. Always inspect thoroughly, even if the driver seems rushed.

What Is NOT Covered

Understanding exclusions is just as important as understanding coverage:

• Personal belongings: Items left inside the vehicle are not covered by carrier insurance. This includes electronics, clothing, tools, and any personal property.
• Pre-existing damage: Any damage documented on the pickup BOL is not eligible for claims.
• Mechanical issues: Engine problems, electrical failures, or mechanical breakdowns are not covered unless directly caused by carrier negligence.
• Aftermarket accessories: Custom parts, spoilers, and non-factory accessories may not be covered or may have reduced coverage.
• Acts of God: Some policies exclude damage from extreme weather events, hail, floods, or natural disasters. Review the specific policy.
• Loose or removable parts: Antennas, spoilers, mirrors, and other parts that can be removed should be secured or removed before shipping.

Tips for Maximum Protection

• Request a copy of the carrier’s insurance certificate before shipping and verify it is current
• Take 30+ photographs of your vehicle from every angle before pickup, including close-ups of any existing scratches or dings
• Be present for both pickup and delivery inspections whenever possible
• Read every line of the BOL at pickup and delivery
• Consider supplemental insurance for vehicles valued over $100,000
• Verify the carrier’s USDOT number and complaint history at safer.fmcsa.dot.gov
• Remove all personal belongings, loose accessories, and aftermarket parts before shipping
• Keep copies of all paperwork: quotes, contracts, BOL, photos, and communication records

How to Verify a Carrier’s Insurance

Before handing over your vehicle, take these steps to verify insurance coverage:

1. Ask for a Certificate of Insurance (COI): Any legitimate carrier will provide this on request. It shows the insurance company, policy number, coverage amount, and expiration date.
2. Verify the USDOT number: Visit safer.fmcsa.dot.gov and enter the carrier’s USDOT number. Check that their authority is Active, not Revoked or Inactive.
3. Call the insurance company: For high-value vehicles, call the insurance company listed on the COI to confirm the policy is active and the coverage amount is accurate.
4. Check the deductible: Some carrier policies have deductibles of $500-$1,000. Understand who pays the deductible in the event of a claim before you ship.
5. Review exclusions: Ask specifically about what the policy does not cover. Weather damage, pre-existing conditions, and personal belongings are common exclusions.

Frequently Asked Questions

Is auto transport insurance required by law?

Yes. The FMCSA requires all auto transport carriers to maintain active cargo insurance as a condition of their operating authority. A carrier without valid insurance is operating illegally.

Do I need to buy additional insurance for my car?

For most standard vehicles, the carrier’s included insurance is sufficient. Consider supplemental coverage if your vehicle is valued over $100,000, is a rare classic or collector car, or if the carrier’s coverage limit is lower than your vehicle’s value.

What if the carrier denies my damage claim?

If you believe the denial is unjust, you can file a complaint with the FMCSA, contact your state attorney general’s consumer protection office, or pursue the matter in small claims court. Having thorough documentation (photos, BOL notes, written communication) significantly strengthens your case.

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