7 Things You Must Know About Auto Transport Insurance

Many consumers may not realize their auto insurance policy fails to provide an expected amount of protection for vehicle transportation.

Auto Transport Companies

To add to the complexity, some auto transport companies include a waiver in their contract negating their responsibility for any potential damage that happens to your vehicle while in their possession.

It’s always wise to double check the car-shipping company’s policy prior to agreeing to the contract.

7 Things to Know About Auto Transport

Here are seven other things you should know about auto transport so your car can be moved without unexpected hassles and costs.

1. Ask for Proof of Insurance

Auto transport companies must carry a valid insurance certificate, and they should be able to present it when asked.

Ask questions related to their policy and make sure you’re comfortable with the answers.

Most importantly, find out if they’re liable for any damage during the shipment process—or if you’ll have to pay a deductible if damage occurs.

2. Get Everything in Writing

Before you sign a contract with an auto transport service, note any special agreements or considerations in writing.

You’ll be protected in the event something unforeseen happens, especially if they’re offering you a service or benefit not included in their standard contract.

3. Check With Your Auto Insurance Company

Don’t just assume you’re covered—check with your agent to make sure. Depending on your policy, your auto insurance may not cover your vehicle while it is in transport.

Ask whether your coverage applies while a vehicle is being shipped and whether you have to supply your insurance company with any documentation from the car shipping company.

4. Remove Loose Items From the Interior of the Vehicle

Most auto shippers won’t cover damage to a vehicle’s interior. To reduce the damage risk, remove all loose items from your vehicle before handing over the keys.

This includes all electronic devices, spare change, mints, and anything else that could become airborne.

By removing loose items, you’ll also reduce the risk of a break-in—which is not covered by most car shipping companies.

5. Pre-Possession Inspection

Before the auto transport company takes possession of the vehicle, they’ll perform a thorough inspection and note any existing damage.

If possible, you should be on hand while the inspection takes place. You should also take pictures of your car to record its condition prior to the shipping company taking possession of it.

6. Bill of Lading

Once the vehicle is delivered, you’ll have to complete a Bill of Lading, which will detail the vehicle’s condition upon arrival.

Be sure to check your car thoroughly, including the undercarriage. Start the engine to check for any signs of mechanical damage. If the vehicle is delivered at night, check it under bright lights so you get a good look.

Once you sign off on the Bill of Lading, the transfer is complete—and the auto transport company won’t be liable if you missed something.

If you do find signs of damage, include the information on the Bill of Lading and have the driver sign off on it. Afterward, contact the shipping company directly to inquire about reimbursement.

7. Filing a Complaint

If you feel that auto transport company failed to provide the services you expected or that they treated you unfairly, you can issue a complaint with your local Better Business Bureau office.

If your vehicle was transported over state lines, you can also file a complaint with the U.S. Department of Transportation.

Updated from an earlier version by Rick Hazeltine.