Understanding insurance is one of the most important parts of shipping your vehicle. Here is everything you need to know about how auto transport insurance works.
How Carrier Insurance Works
All FMCSA-licensed carriers are required to carry cargo insurance. This is not optional — it is a federal requirement for operating authority. Coverage ranges from $100,000 to $1,000,000+ depending on the carrier.
State Wide Auto Transport verifies every carrier's insurance is active before dispatching your vehicle.
What Is Covered
Carrier cargo insurance typically covers:
- • Physical damage during loading and unloading
- • Damage from road debris while on the trailer
- • Damage from carrier equipment failure
- • Damage from accidents involving the carrier truck
- • Weather damage while on the trailer (for open transport)
What Is NOT Covered
- • Pre-existing damage not documented on the Bill of Lading
- • Personal items left inside the vehicle
- • Mechanical issues unrelated to transport
- • Acts of God in some policies (extreme weather events)
- • Items stored in the bed of a truck or strapped to the roof
The Bill of Lading Is Critical
The Bill of Lading (BOL) is your most important document. It records your vehicle's condition at pickup and delivery. Here is why it matters:
At pickup: The driver inspects your vehicle and notes all existing damage (scratches, dents, chips). Review this carefully and make sure everything is documented. If damage exists but is not on the BOL, it will be very hard to prove it happened during transport.
At delivery: Compare the delivery condition to the pickup BOL. Any new damage must be noted on the delivery BOL before you sign it.
How to File a Claim
If you notice new damage at delivery:
1. Note it on the delivery BOL before signing 2. Take photos of the damage immediately 3. Call us at (855) 469-8090 — we will guide you through the process 4. Get a repair estimate from a certified body shop 5. We help file the claim with the carrier's insurance company
Most claims are resolved within 30-90 days.
Tips for Maximum Protection
- • Clean your car before pickup so damage is visible during inspection
- • Take your own photos before the driver arrives (date-stamped)
- • Review the pickup BOL carefully — do not rush
- • Inspect carefully at delivery before signing anything
- • Choose enclosed transport for high-value vehicles
- • Remove all personal items (they are never covered)
Do You Need Additional Insurance?
For most vehicles, carrier cargo insurance is sufficient. However, if your vehicle is worth over $100,000, you may want to:
- • Check with your personal auto insurance for gap coverage
- • Ask about supplemental transport insurance
For questions about coverage on your specific shipment, call State Wide Auto Transport at (855) 469-8090.