Car Shipping Insurance: What’s Covered – and Is It Worth Paying More?

The short answer: every licensed auto transport carrier is already required by federal law to insure your vehicle while it’s on their truck — but “insured” doesn’t automatically mean “insured enough.” Before you book a car shipping quote, it pays to know exactly what a carrier’s cargo policy covers, what it excludes, whether your own auto insurance plays any role, and when it’s smart to pay for supplemental protection. This guide walks through all of it in plain English, without the fine-print runaround.

What Insurance Does an Auto Transport Carrier Actually Carry?

Every carrier operating in interstate commerce must be registered with the Federal Motor Carrier Safety Administration (FMCSA) and hold two distinct types of coverage under 49 CFR Part 387:

• Public liability insurance — covers bodily injury or property damage the truck/driver causes to third parties (other cars, guardrails, pedestrians). Reputable carriers and the brokers who vet them typically require $750,000 to $1,000,000 in liability coverage, well above the bare federal floor.
• Motor truck cargo insurance — covers damage to the vehicles being hauled. This is the policy that matters most to you as a shipper. The federal minimum is only $5,000 per vehicle and $10,000 per occurrence — figures that can fall well short of a real vehicle’s value, which is why most established carriers voluntarily carry cargo limits in the $100,000–$250,000+ range per load.

Neither of these is something you purchase — it’s coverage the carrier is legally obligated to already have. Your job before booking is simply to confirm it exists and is adequate, by requesting the carrier’s Certificate of Insurance (COI) through your broker. Any legitimate transport company should hand this over without hesitation.

What Cargo Insurance Covers — and What It Doesn’t

Cargo insurance is meant to cover damage caused during loading, transit, and unloading — things like a strap causing a dent, a rock chip from road debris on an open trailer, or an accident involving the carrier’s truck. It generally does not cover:

• Pre-existing damage or mechanical/electrical issues unrelated to the haul
• Loose personal items, luggage, or aftermarket parts left inside the vehicle — almost universally excluded, which is one more reason to ship your car empty
• Acts of God in some carrier policies (always confirm this line item on the COI)
• Damage that isn’t noted on the Bill of Lading at pickup and delivery

That last point is the single most important thing you can control. The Bill of Lading is the inspection report signed at pickup and again at delivery. If a scratch or dent isn’t written down and photographed at pickup, there’s no baseline to prove it happened in transit — and if it’s not noted at delivery, you generally forfeit your ability to file a claim at all. Walk the car with the driver at both ends, take timestamped photos from multiple angles, and don’t sign off until everything is documented.

Does Your Own Car Insurance Cover Shipping?

You are not required to keep your personal auto policy active while a vehicle rides on a carrier, since you’re not the one driving it. However, having comprehensive and collision coverage on your own policy can act as a backstop if a carrier’s cargo insurance doesn’t fully cover a loss — minus your personal deductible, and only if your insurer confirms it applies to in-transit damage. It is not a substitute for verifying the carrier’s own coverage, and most insurers will expect the carrier’s policy to pay first.

Deductibles: Who Actually Pays?

The deductible listed on a carrier’s Certificate of Insurance is the carrier’s financial responsibility, not a fee charged to you. But it does affect you indirectly: the dollar value of your damage claim generally needs to exceed that deductible amount before the carrier’s insurance company will pay out at all. For minor cosmetic issues under the deductible threshold, many carriers simply resolve the problem directly (a quick reimbursement or paying for a touch-up) rather than filing a formal claim — which is often faster for everyone involved.

Open vs. Enclosed Transport: Does Coverage Differ?

Both open and enclosed carriers are legally required to carry cargo insurance, but coverage limits often differ in practice. Enclosed carriers frequently transport higher-value, classic, or exotic vehicles, so many enclosed operators voluntarily carry higher cargo limits than a typical open-carrier hauler running everyday sedans and SUVs. If you’re shipping a vehicle worth significantly more than a standard car, ask specifically what the enclosed carrier’s per-vehicle cargo limit is — don’t assume “enclosed” automatically means “fully covered.” For a full breakdown of when enclosed is worth the added cost, see our Open vs Enclosed Auto Transport guide.

Carrier Cargo Insurance vs. Supplemental Coverage

Note: exact carrier cargo limits, supplemental premiums, and deductibles vary by company — the figures above are industry-typical ranges for illustration, not a quoted policy. Always confirm actual numbers on the specific carrier’s Certificate of Insurance before shipping.

How to File a Car Shipping Insurance Claim

1. Inspect at pickup. Walk the vehicle with the driver, note every existing mark on the Bill of Lading, and photograph it from all angles.
2. Inspect at delivery before signing. Compare against your pickup photos. Do not sign off on delivery until any new damage is documented and the driver acknowledges it in writing.
3. Request the carrier’s Certificate of Insurance if you haven’t already seen it, so you know which insurer and policy number you’re dealing with.
4. Submit a written claim with your photos, the Bill of Lading, and a repair estimate to the carrier (or your broker’s claims desk, who can help coordinate).
5. Follow up in writing and keep records of every call and email until the claim is resolved.

Minor damage is sometimes resolved directly between you and the carrier without ever involving the insurance company — often the fastest path if both sides agree on a fair number.

How Best Care Auto Transport Handles This

We only book carriers that carry verifiable cargo and liability coverage, and we provide the Certificate of Insurance on request before your vehicle is dispatched — part of how we help customers avoid the shady-operator problems covered in our car shipping scam guide. If you’re shipping a higher-value vehicle and want to talk through whether supplemental coverage makes sense for your specific car, our team will walk you through the real numbers rather than upselling a blanket policy you don’t need. See our car shipping cost guide for how insurance and transport mode affect your overall quote.

Bottom Line

Your car is insured the moment it’s loaded onto a legitimate, FMCSA-licensed carrier — the real question is whether that coverage is high enough for what you’re shipping. For most standard vehicles, verified carrier cargo insurance is sufficient. For classic, exotic, or high-value vehicles, ask pointed questions about per-vehicle limits and consider supplemental coverage. Either way, the paperwork you generate at pickup and delivery — not the policy itself — is usually what determines whether a claim gets paid.

Ready to ship with a company that’s upfront about coverage? Get your free, no-obligation car shipping quote from Best Care Auto Transport today, and ask us for a copy of your assigned carrier’s Certificate of Insurance before pickup.