Does Car Insurance Cover Auto Shipping?
Auto transporters have cargo insurance. Your vehicle is considered cargo during transport. By default, the first layer of insurance protection is the carrier.
If by some chance the carrier does not have adequate insurance to cover your vehicle, comprehensive car insurance coverage may cover your vehicle. It has been our experience that nearly all insurance companies cover your car during transport. However, the only way to determine how they cover your vehicle is by reaching out to your insurance company and asking. Remember to mention if you car is shipping state to state or locallly.
It is recommended that if you want to avoid filing a claim with your own insurance that could possibly raise your rate, you will want to be sure the auto shipping carrier will have adequate coverage. The way to accomplish this is getting proof of insurance from the carrier.
Regardless of coverage, if the auto shipper has an accident and it is caused by someone other than the transporter, the person who caused it must pay for any damage to your car, just like if you were driving.
It is likely that if there is an accident and your report it to them, their legal department will try to go after the carrier's insurance if they pay out a claim.