Understanding Auto Transport Insurance Policy

Getting something from one place to another is not an easy task but it’s even more difficult when you’re trying to get a vehicle from one part of the country to another – without driving it.

This requires a car shipping company to physically move it from one location to the other and that in and of itself can be a daunting task – so much goes into it, it can make anyone’s head spin. But there are soo many reasons why transporting your vehicle is generally better than driving.

When you need to get your car across a large geographical distance – and you don’t want to drive it – there are numerous considerations to be had. This includes thoughts about the company you want to use to ship it, to the time frame needed for the car to arrive at your new destination.

An additional consideration to keep in mind is that of auto shipping insurance. Just because you don’t have your car on the road, doesn’t mean you don’t need to consider coverage for the big trip.

Meanwhile, basic insurance coverage is included in any price quote you get. The FMCSA regulations made it so that, any licensed auto transport company must have a certain level of insurance coverage to guard against damages caused by the company. For the vast majority of customers, the standard insurance is sufficient.

The main benefit of auto shipping insurance is that you have peace of mind – knowing that if something should happen to your car en route, the damage will be taken care of – from a financial standpoint – by the insurance company. This includes scratches, dents, and dings, or any other damage sustained by your vehicle during the loading and unloading process.

Other areas of concern for auto transport insurance includes:

• Striking a load

• Theft from unattended vehicle

• Constructive total loss

• Loading and unloading

• Debris removal expenses

• Earned freight coverage

• Etc.

The type of coverage you need to be concerned with depends on the kind of vehicle you are shipping. Some policies will exclude antiques and exotics, while other policies may not have enough coverage for certain vehicles. Virtually all auto transport companies will tell you that your vehicle is insured, but insurance coverage varies and your car may not be fully protected.

Below, therefore are a few tips you must read before putting your vehicle in the auto transport company’s truck:

Ask The Auto Shipping Company To Give You Full Details About Their Insurance:

The ability to present a valid insurance certificate when asked is what differentiates reliable auto transport companies from the others.

Ask questions related to the auto transport company’s insurance policy. Ask all your questions until you’re comfortable with the answers  - after all, you’re shipping one of your most valuable assets!

Find out if there’re any hidden terms and conditions, if they will take full responsibility for any damage during the shipment process – or if you’ll have to pay a deductible.

Get Everything On Paper:

Before accepting the terms of an auto transport company, you should take note of any special agreements and put them in writing.  

Although some vehicle transport services take pride in offering outstanding services to their customers, the truth remains that, “no process is perfect” and there are times when the unforeseen happens. Your written agreement would save you in times like this.

The Bill Of Lading:

Immediately the auto transport company delivers the vehicle, the owner would be called upon to fill out the Bill of Lading, which is essentially a condition report that details the vehicle’s condition upon arrival.

Make sure you thoroughly inspect your vehicle. It is also smart to start the engine to check for any signs of mechanical damage. Once you sign off on the Bill of Lading, the transfer is complete and if you missed anything, the auto transport company won’t be liable.

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

Lodge Your Complaint:

If you feel that the auto transportation company has failed to provide the services you paid for, or you feel cheated, you can lodge your complaint with your local Better Business Bureau, BBB office.

However, if your vehicle was transported over state lines, you may also lodge your complaint with the U.S. Department of Transportation.

By Line:

Before employing the service of any auto transport company, be sure to understand, fully, their insurance policy. Gather recommendations from friends and neighbors, contact the state insurance department about any company complaints and always solicit at least three auto transport service comparisons.

By doing your homework on auto transport insurance policies, you can rest assured knowing that your car and/luxury is covered.