Understanding Auto Transport Insurance
All licensed auto transporters are required to carry cargo insurance that covers vehicles during transit. Understanding what's covered—and what's not—is essential before you ship your vehicle.
Typically Covered
- Collision damage during transport
- Damage from road debris
- Damage during loading/unloading
- Fire and theft (varies by policy)
- Weather-related damage (enclosed carriers)
Usually NOT Covered
- Personal items inside the vehicle
- Pre-existing damage
- Mechanical failures
- Acts of God (sometimes)
- Damage not documented at delivery
Before You Ship: Protect Yourself
The best claim is one you never have to file. Take these steps before shipping to protect yourself:
- Request Certificate of Insurance (COI): Ask the transporter for proof of insurance before booking. Verify coverage limits meet your vehicle's value.
- Document your vehicle thoroughly: Take 50+ photos from every angle, including close-ups of any existing damage, scratches, or imperfections.
- Note odometer reading: Record the exact mileage before pickup.
- Review the Bill of Lading carefully: Ensure all existing damage is noted accurately at pickup.
- Remove personal items: Personal belongings are not covered by cargo insurance.
What to Do Upon Delivery
The delivery inspection is CRITICAL to any potential claim. Follow these steps exactly:
- Inspect in daylight if possible: Damage is harder to see in low light conditions.
- Compare to pickup photos: Check your pre-shipment photos against current condition.
- Walk around the entire vehicle: Check roof, undercarriage, wheels, mirrors, and all panels.
- Note ANY new damage on the delivery receipt: Be specific—location, size, type of damage.
- Photograph new damage immediately: Take multiple angles with good lighting.
- Do not sign "No Damage" if damage exists: This can void your claim rights.
How to File a Damage Claim
Step 1: Document Everything
Gather all documentation related to the shipment and damage:
- Bill of Lading (pickup and delivery copies)
- Contract/Order agreement
- Pre-shipment photos
- Post-delivery photos of damage
- Repair estimates from licensed body shops (get 2-3 estimates)
Step 2: File Within Time Limits
Time is critical for claims:
- Immediately: Note damage on delivery receipt
- Within 24-48 hours: Notify company in writing (email creates paper trail)
- Within 9 months: Federal law requires filing within 9 months of delivery
- Carrier response: Companies have 30 days to acknowledge, 120 days to resolve
Step 3: Submit Your Claim
Send a formal claim letter including:
- Your name, contact information, shipment order number
- Vehicle details (year, make, model, VIN)
- Description of damage with specific locations
- Copies of all documentation (keep originals)
- Repair estimates
- Photos comparing pre and post-shipment condition
- Amount claimed
Step 4: Follow Up
Keep records of all communications. If the company doesn't respond within 30 days or denies your valid claim, you can escalate to the FMCSA or pursue legal action in small claims court for damages under your state's limit.
If Your Claim Is Denied
Claims may be denied for various reasons. Here are your options:
- Request written explanation: Ask for specific reasons for denial
- Appeal the decision: Provide additional documentation if available
- File FMCSA complaint: Report the carrier to the Federal Motor Carrier Safety Administration
- Small claims court: File suit for the repair amount (usually under $5,000-$10,000 depending on state)
- Consult an attorney: For larger claims, legal representation may be worthwhile
- Credit card dispute: If you paid by credit card, you may have additional protections
Common Claim Mistakes to Avoid
Signing without inspecting
Always inspect thoroughly before signing any delivery paperwork.
Delaying notification
Report damage immediately—waiting weakens your claim.
Poor documentation
Always take detailed photos before and after shipping.
Not getting estimates
Professional repair estimates are essential for claims.
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Minimize claim risk by choosing transporters with proven track records and proper insurance.
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