Everything You Need to Know About Car Shipping Insurance

Car shipping requires insurance, and those without it may occasionally find themselves in a difficult situation. Think about what will happen if your car is damaged during delivery if you’re thinking about shipping it across the country. What if the driver has a collision? What if there is additional damage? This is where auto shipping insurance is useful. Some people might not even understand coverage or how to pick the best kind. Here is everything you need to know to get the security you require.

What is insurance for car shipping?

Car shipping insurance is a type of protection provided to guard against damage to your car during delivery. This may occur if you ship your car or even if you’re driving somewhere while it’s being transported. It is a type of auto insurance that pays for the expense of moving items that are insured. Liability coverage and other personal injury protection (PIP) coverage, which includes medical care and income replacement, are some general components of coverage, though it can vary depending on the carrier and the type of goods being transported. Even though these features might seem like a lot to pay for a very low risk, purchasing car shipping insurance can be a smart move. Although insurance premiums can be very low (a few dollars for every $1000 of coverage), the cost of damages

What Is Insurance For Car Shipping?

Liability and physical damage coverage are the two main types of coverage for car shipping. Liability coverage protects you if your car causes a collision, as reported to the insurer. Would the at-fault party, for instance, cover the expense of your car hitting a different driver who needed to be taken to the hospital rather than being able to drive? You will be protected even if the incorrect party is held accountable for an accident thanks to liability coverage.

Simply put, physical damage coverage takes care of actual physical harm to your car or other property, like a cracked windshield. Although it is not strictly necessary, this coverage can give you more peace of mind in the event that your car is damaged during delivery.

How Much Does Car Shipping Insurance Cost?

Depending on your coverage, the price of car shipping insurance varies. There are numerous options for additional features like loss of use and additional accident protection, while liability and physical damage coverage are generally considered standard. For instance, even though physical damage coverage is typically included in policies, some auto shipping companies will also offer an additional choice of loss of use coverage. This means that if your car is damaged, it might have to be towed to a repair facility for repairs rather than being able to be driven away from the delivery location.

The costs of this would be covered by loss of use insurance. If there is another accident between the time the vehicle leaves your home and the time it arrives at its destination, the additional accident protection will protect you. For this feature, some businesses might charge a higher price, while others might provide it as an extra option at no extra charge.

How to Purchase Insurance for Car Shipping

The price of car shipping insurance can vary depending on a number of factors. The carrier, base level of coverage, and even the type of coverage you select will all have an impact on how much you pay. Following are some pointers for buying auto shipping insurance: Choose a company that specialises in shipping cars (many auto transport firms will offer such coverage). A reputable company with car shipping experience will be able to provide you with the most accurate estimates when you need to ship a car to another state.

When to Purchase Extra Auto Insurance

Although the cost of car shipping insurance can be relatively low, it’s important to keep in mind that your vehicle might sustain damage while being moved. Before you ship or deliver your car, it’s best to purchase more insurance. By doing this, you’ll have enough time to review the policy’s fine print and make sure you agree with it before committing a significant amount of cash and risk.

What are the requirements for auto transport insurance?

When shipping a car, you do not require specialised auto transport insurance. No specific auto transport insurance is required if you are moving your insured vehicle from one state to another. However, you will require appropriate carrier coverage or a third-party agency if you are transporting a vehicle that is not covered by an existing auto policy. An insurance agent will need details about the commercial vehicle and its cargo in order to underwrite your auto shipping policy. The federal government controls the carrier, auto transport insurance, and those who transport vehicles and their cargo. It is highly advised that you find out how to get in touch with the local auto transport insurance providers before shipping your car. A representative will be able to assist you.

advice on auto shipping insurance

Particularly when compared to the cost of purchasing a new vehicle, the average cost of car shipping insurance is quite low. Various factors, including the coverage you choose to purchase, can affect the premium price. Here are some pointers for insurance for car shipping:

Request insurance documentation
Many insurance experts will provide quotes without seeing your insurance documentation. However, a denial of coverage could result from a lack of evidence. It is crucial that you bring all the paperwork the carrier requires.

Find a professional
Depending on where you are and how much your car is worth, the majority of carriers offer auto shipping insurance. Depending on where you want to ship your car, US carriers are typically more expensive while foreign carriers can be significantly less expensive.

Pick the proper carrier.
Europe may offer more affordable car carriers for shipping automobiles than the US. In order to get a better deal on your payment, you should carefully verify that the carrier you select offers specialised insurance.

Write everything down.
If you accept less coverage, a carrier might assist you in obtaining better prices. Any limitations agreed to in writing must, however, be included in the auto shipping insurance agreement.

Make sure you obtain the necessary protection.
You can select the appropriate level of protection for the value of your vehicle from a number of carriers that offer various levels of insurance coverage. A specialist US or foreign company will need to provide an additional cover if your car is worth more than $200,000.

Conduct an examination
Let’s say your car has mechanical or bodywork issues. In that situation, it would be wise to estimate your car’s value and include it in your auto shipping insurance contract.


Car shipping was created in response to the growing demand for people to transport their vehicles from one country to another and the industry’s shift toward more lucrative markets. When driving your car away from home, in particular, you should take appropriate precautions to protect it as a valuable asset. You must work with an auto transport insurance provider that is aware of its clients’ needs and is happy to give you advice on how to best protect yourself.

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