Shipping your vehicle requires a certain degree of trust. While the overwhelming majority of shipments are completed without a scratch, things can occasionally go wrong—a door ding, a cracked windshield, a scratch that wasn’t there at pickup. How prepared you are ahead of time makes all the difference in how smoothly an auto transport insurance claim gets resolved.

How Car Shipping Insurance Works

Every legitimate car shipping company operating in the United States is required by the Federal Motor Carrier Safety Administration (FMCSA) to carry a minimum level of public liability insurance. For most auto transport carriers, that minimum is $750,000, which covers bodily injury and property damage. Beyond that federal baseline, carriers also carry cargo insurance that protects the vehicles they’re transporting.

However, the coverage that comes standard with your shipment may not fully protect your vehicle depending on its value, condition, or the circumstances of any damage. Reputable auto transport companies offer additional coverage options that you can select at the time of booking, and understanding what each level actually covers is worth your attention before you commit.

Types of Car Shipping Insurance Coverage

Basic Carrier Liability

Basic carrier liability is the coverage included in the cost of your shipment. It protects your vehicle against damage that occurs as a direct result of the carrier’s negligence during transit, including improper loading, a securing strap that wasn’t fastened correctly, or an accident involving the transport truck.

Coverage limits under basic liability typically range from $50,000 to $1,000,000 per vehicle depending on the carrier and transport company. For most standard passenger vehicles, this level of protection is adequate. That said, basic liability has real limitations. It does not cover damage caused by weather or road debris on an open carrier, pre-existing damage that wasn’t documented before pickup, personal belongings left inside the vehicle, or mechanical and electrical failures that occur during transit but are unrelated to how the vehicle was handled.

Supplemental Coverage

Supplemental insurance options go beyond basic liability and cover a broader range of scenarios. Depending on the tier you select, this can include damage from environmental exposure, vandalism, and in some cases theft. Coverage limits are higher and exclusions are fewer.

This level of coverage is worth considering seriously if you’re shipping a luxury vehicle, a classic car, an exotic, or any vehicle with a high replacement value. Some car shipping companies offer tiered supplemental options, so you can match your coverage level to what your vehicle is actually worth rather than paying for more than you need.

Gap Insurance

Gap insurance is a specific type of coverage that applies when you’re still making payments on your vehicle. If your car is declared a total loss during transport, gap insurance covers the difference between what your insurance pays out (the vehicle’s current market value) and what you still owe on your loan. Without it, you could be left making payments on a vehicle you no longer have.

This situation is most relevant for newer vehicles, which depreciate quickly and often have loan balances that outpace their market value. Before purchasing gap insurance separately, check your existing auto insurance policy. Many comprehensive policies already include it or offer it as a low-cost add-on.

What’s Covered and What Isn’t

One of the most common points of confusion with auto transport insurance claims is the gap between what shippers assume is covered and what actually is. Here’s a straightforward breakdown:

Typically Covered

• Damage caused by carrier negligence during transit (improper loading, unsecured tie-downs, mishandling)
• Damage from accidents involving the transport vehicle
• Losses that fall within the terms of your supplemental policy, if you’ve selected one

Typically Not Covered

• Pre-existing damage that wasn’t documented on the Bill of Lading before pickup
• Acts of God, including hail, flooding, and severe weather exposure on open carriers
• Personal belongings left inside the vehicle
• Mechanical or electrical failures unrelated to how the vehicle was handled during transport
• Damage on vehicles that were booked as operable but turn out not to be

The Bill of Lading is the document that defines your vehicle’s condition at the time of pickup. Whatever isn’t noted on it before the driver leaves will be difficult, sometimes impossible, to include in a claim later. If your vehicle has any pre-existing issues that could affect loading or handling, disclosing them before pickup is always in your best interest.

Understanding Deductibles in Auto Transport Coverage

Like most insurance products, auto transport coverage often comes with a deductible, which is the amount you’re responsible for paying out of pocket before the insurance kicks in. Deductible amounts vary between carriers and coverage tiers. Some supplemental policies are available with zero deductible, while others require a contribution that can range from a few hundred dollars upward.

Before booking, ask specifically about the deductible structure attached to whatever coverage level you’re selecting. A lower premium might come with a higher deductible that isn’t worth the tradeoff if your vehicle sustains damage. Getting this information in writing upfront saves a lot of frustration later.

Before Your Car Is Picked Up: How to Protect Your Claim

The decisions you make before your vehicle is loaded onto a carrier have a direct impact on whether a claim can be filed successfully and whether it will be paid. These steps take less than an hour and can save you considerable time and money if something goes wrong:

1. Clean your vehicle thoroughly before pickup – A clean car makes it far easier to spot and document pre-existing scratches, dents, and paint chips that you’ll want on record before the carrier takes possession.
2. Photograph everything – Take clear, well-lit photos of all four sides of the vehicle, the roof, the undercarriage if possible, and any areas with existing damage. Do this the day of pickup, not a week before.
3. Review the Bill of Lading – Carefully read the Bill of Lading at pickup and make sure every pre-existing imperfection is noted before you sign it. If the driver has already marked something incorrectly or missed a damage point, ask for it to be corrected. This document is the foundation of any car shipping insurance claim.
4. Remove all personal belongings from the vehicle – Personal items are not covered under carrier insurance regardless of value, and leaving them in the car adds unnecessary risk.
5. Confirm documentation – Ensure that the car shipping company has current insurance documentation and ask how claims are handled before your vehicle leaves. A company that answers this question clearly and confidently is one worth trusting.

Car Shipping Insurance Claims: A Step-by-Step Checklist

If your vehicle arrives with damage that wasn’t there at pickup, how you respond in the first few hours matters. Follow these steps to give your claim the best chance of a fair resolution:

1. Inspect the vehicle at delivery before signing anything – Do this in good lighting. If the delivery happens after dark, ask to inspect under adequate light before the driver leaves.
2. Photograph all new damage immediately – Take multiple angles, close-up shots, and photos that show the damage in context of the overall vehicle.
3. Note every new damage point on the delivery paperwork before signing – This is your one opportunity to document damage in real time with the carrier present.
4. Do not sign any document indicating satisfactory condition if damage is present – Once you sign off on a satisfactory delivery, filing a claim becomes significantly harder.
5. Contact the transport company the same day – Report the damage promptly and ask about their claims process. Most policies require damage to be reported within a specific window.
6. Gather your full documentation package – This includes your pre-shipping photos, the Bill of Lading from pickup, the delivery inspection report, and any written correspondence with the carrier.
7. Submit your claim within the timeframe specified in your policy – Missing this window can disqualify your claim regardless of its merit.
8. Follow up in writing and keep records of every communication – Note dates, names of representatives, and summaries of what was discussed.

Tips for a Smoother Claims Experience

A few things experienced shippers know that first-timers often don’t:

• Book with a company that provides clear, written coverage terms before you commit. If getting straight answers about insurance requires multiple calls and vague responses, that’s useful information about what working with that company will be like.
• Choosing enclosed transport for a high-value vehicle significantly reduces the likelihood of a claim in the first place. Enclosed carriers shield vehicles from weather, road debris, and environmental exposure.
• Standard pickup and delivery windows are estimates, not guarantees. A delay in transit doesn’t affect your coverage. Your policy applies for the duration of the transport regardless of how long it takes.
• Ask about the claims process before you book, not after something goes wrong. Reputable companies will answer this question clearly and without hesitation.

Ship with Confidence Through RoadRunner Auto Transport

RoadRunner Auto Transport has been handling nationwide vehicle shipments for over 30 years. Our basic liability coverage exceeds industry minimums, and we offer customizable supplemental insurance options that you can select at the time of booking, so your coverage matches what your vehicle is actually worth.

With a network of 25,000+ certified carriers, 24/7 online shipment tracking, and no upfront deposit required, we’ve built our reputation on making vehicle shipping straightforward and stress-free. Our team of transport coordinators, dispatch specialists, and shipment support agents is with you from quote to delivery. If something does go wrong, we have established claims processes in place to work toward a resolution.

Ready to get started? Use our instant car shipping cost calculator for a free quote and check carrier availability for your route today.

Frequently Asked Questions

What should I do immediately if my car is damaged during shipping?

Before you sign the delivery paperwork, inspect your vehicle thoroughly and photograph any damage you find. Note every new damage point on the Bill of Lading or delivery inspection report with the driver present, then contact your transport company the same day to report the damage and begin the claims process. Acting quickly and documenting everything on the spot gives your car shipping insurance claim the strongest possible foundation.

Are car shipping insurance claims hard to file?

Filing a claim is straightforward when the paperwork is in order. The two most common reasons claims run into problems are missing pre-shipping documentation and damage that wasn’t noted on the Bill of Lading at delivery. Shippers who photograph their vehicle before pickup, review the Bill of Lading carefully at both ends of the transport, and report damage promptly tend to have much smoother claims experiences than those who try to document issues after the fact.

Does my personal auto insurance cover damage during car shipping?

It depends on your policy. Some comprehensive personal auto insurance policies do extend coverage during professional vehicle transport, but this varies significantly between insurers. Contact your insurance provider directly to find out what your existing policy covers during shipping and what limitations apply. Even if your personal policy offers some protection, the carrier’s liability insurance remains active throughout the transport and may provide additional coverage depending on the circumstances of any damage.