Car shipping insurance

The Good:

Every Car Hauler company is required to carry insurance in order to maintain their license and the minimum requirements for this insurance generally easily covers most car’s full blue book value or even the cost of a new vehicle.

Gratefully, damage to a vehicle during auto transport is fairly infrequent.  Still it does happen.   The most common type of damage is to the vehicle’s exterior, in the form of major dents and scratches and an occasional broken mirror or window.

This type of damage is fully covered by the Car Haulers insurance and in almost all cases the customer will be fully reimbursed for the cost of repair.

The Bad:

Like all insurance certain exclusions apply.   For example, most homeowner insurance policies exclude flood and earthquake damage.   The same holds true for Car Shipping Insurance.   Because each Car Hauler maintains their own insurance policy the exclusions are different for each Car Hauler.   However there are general themes.  Here is a list of common exclusions that most Car Hauler Insurance policies have.

Common Exclusions:

1.) Not on the Bill of Lading:

Virtually all Car Hauler insurance policies exclude all damage not noted on the Bill of Lading.   This is the single most important exclusion that a customer of Auto Transport needs to understand.  If there is damage to your vehicle it must be identified at the time of delivery and noted on the Bill of Lading and signed by the driver. If not it will be an uphill battle to obtain coverage for your damage.

2.) Acts of God:

These are generally characterized as weather related damage.  For example your car is damaged in a hail storm.

(I’ve always wondered why God gets the credit for all these “bad” events.  Isn’t He also responsible for the beauty and plenty all around us.  A tangent for sure – sorry)

3.) Road Hazards:

Many Car Hauler insurance policies exclude what is define as road hazard damage.  This class of damage often includes rock chips, grease, tar, and oil damage that is common to simply being on the open road.

4.) Personal Items:

Virtually no Car Hauler insurance policy will cover personal items left in the vehicle during a transport.

5.) Mechanical Damage:

It is uncommon for a Car Hauler to cause mechanical damage and this type of damage is frequently excluded.   Mechanical damage generally relates to the engine or transmission or other operating systems of the vehicle.

The Ugly:

If you understand how Car Shipping Insurance works and you take some simple precautionary measures there really isn’t anything ugly about it.  However, like most things the key is understanding the product’s capabilities and limitations.

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