While shipping a car is convenient, it is also risky. It is uncommon for a car to be damaged while in transit due to weather, road debris, or an accident on the road, but it can happen. Understanding car shipping insurance and claims helps minimize or eliminate risk and allows you to recover as quickly as possible without any unnecessary losses. Whether you are transporting your personal car, motorcycle, or golf cart, this article will help you understand what is covered in your insurance and how to make a claim for it.
Key Takeaways
- Vehicle transport damage is uncommon but can still occur during shipment.
- Most reported cases involve minor cosmetic damage, not major structural issues.
- Knowing how vehicle transport damage insurance works helps determine responsibility and claim steps.
- Reviewing your car shipping insurance coverage ensures complete protection if transit damage happens.
How Common Is Damage During Car Transport
Damage during vehicle transport is not very common. Industry sources indicate that fewer than 5% of shipped vehicles report any form of damage. Although exact public data is limited, the overall size of the vehicle shipping industry gives perspective: the U.S. vehicle shipping market generated about $9.9 billion in revenue in 2023.
Because so many vehicles move, even a small percentage translates into meaningful numbers. Most incidents involve minor surface issues like scratches or dings rather than severe damage or total losses. Rising repair costs and insurance claim severity have also pushed premiums higher, prompting carriers to rely more on cargo insurance coverage.
In short, the risk is fairly low but not entirely none, so it is something that you have to work into your planning.
Inspecting Your Car Before Pickup
Before handing over your keys to the carrier, give your vehicle and its condition a very good look. Walk around the vehicle, checking the condition of paneling, wheels, mirrors, and windows, if any.
Take timestamped pictures from various angles and note any scratches or dents. The carrier will also do a pre-shipment inspection and file a report on the condition of the vehicle.
Afterward, once both parties have agreed, you will both sign a Bill of Lading (BOL) that transfers the responsibility to the carrier. Any preexisting damage has to be noted very carefully; otherwise, you might have problems later on should the carrier damage your vehicle after it is in their custody.
Knowing how car shipping works can help you know what to expect when it comes to pickup and delivery.
How To File a Car Shipping Insurance Claim
If your vehicle arrives with new damage, act immediately.
- Inspect Before Signing: Ensure the vehicle is inspected before signing the delivery paperwork.
- Take Plenty of Photos: Take wide-angle and close-up shots of every damage, from several angles.
- Compare Photos: Use the delivery photos to compare with those taken before pickup for a new issue.
- Contact the Carrier Immediately: Report the damage and share photo evidence as soon as possible.
- Check the Bill of Lading: Customarily, the carrier will bear the responsibility for damages if it was not recorded at pickup.
- Prepare Documentation: Documentation should include the Bill of Lading, all photos, and written repair estimates.
- File the Claim Without Delay: The sooner you file, the earlier you get reimbursed.
Every licensed transporter must carry auto transport insurance, which covers damage caused by the carrier or its equipment.
If the company refuses payment or delays a response, you may contact the Better Business Bureau or file a complaint with the FMCSA’s National Consumer Complaint Database.
How Can I Protect My Car During Transport
There are several ways to minimize the chance of auto transport damage:
- Get a licensed and insured carrier, then check their USDOT number at the FMCSA Licensing & Insurance portal.
- Check that your carrier’s insurance covers at least the value of your car. Open carriers usually are covered up to the value of $150,000, and enclosed trailers have insurance coverage between $250,000 and $3 million.
- Check your own policy to avoid situations where a car is shipped without insurance. Certain personal-style policies may not cover transit damage.
- Remove custom parts or accessories that could shake loose during shipment.
- Use enclosed transport for valuable or classic cars.
- Become familiar with some common car shipping documents so you fully understand your rights before signing on the dotted line.
If your vehicle doesn’t start or move under its own power, it needs special handling. You can learn how carriers manage these situations through non-running vehicle shipping.
There is a low probability for auto transport damage to occur. That is not to say it never happens. Proper vehicle inspection prior to transport, documentation of its present condition, and proof of insurance coverage will go a long way toward ensuring that the transport is carried out without any undue worry.
FAQ
Does My Personal Insurance Cover Vehicle Transport?
Some policies offer limited coverage, whereas many exclude in-transit damage from coverage. Before making your reservation, make a thorough check on the incidents covered.
How Soon Should I File a Claim?
Immediately. Delays can weaken your case. Most car shipping insurance carriers require claims to be submitted within 7 to 14 days.
How Can I Prevent Damage Next Time?
Pick a licensed transporter, photograph your vehicle, verify insurance coverage, and consider enclosed transport for long or high-value shipments.
Quick Recap
- Damage during car shipping is uncommon, with fewer than 5% of transported vehicles reporting issues.
- Most incidents involve minor cosmetic problems such as scratches, dents, or paint scuffs.
- Every licensed carrier must provide auto transport insurance that covers damage caused while the vehicle is in their care.
- A thorough pre-pickup inspection and clear photos help protect you if a dispute arises later.
- Claims should be filed immediately, supported with photos, documentation, and the Bill of Lading.
- Enclosed transport and removing loose accessories greatly reduce the chance of damage during transit.
- Verifying both the carrier’s insurance and your own policy ensures complete protection before the car moves.
Patrick Peterson is a passion-driven automotive expert with over 8 years of hands-on experience in car care, maintenance, and detailing. He combines practical, real-world advice with a friendly, easy-to-understand style—perfect for everyday car owners. When he’s not writing how-to guides or testing products, Patrick is most likely under the hood of his vintage Mustang or exploring scenic drives.