Auto Transport Insurance Explained

What carrier cargo coverage actually protects, and where your own policy fills the gap.

Every legitimate carrier carries cargo insurance

Federal authority requires it. Open carriers commonly hold $100,000 to $250,000 in cargo coverage spread across a full load; enclosed carriers often carry $500,000 to $1,000,000 or more. Always ask for the certificate of insurance before dispatch, and confirm the policy is active.

What it covers

Damage caused by the carrier during loading, transit or unloading. That includes strap damage, contact with other vehicles on the trailer, and equipment failure.

What it does not cover

Acts of God such as hail or flooding, pre-existing mechanical problems, damage from a defect in the vehicle itself, and personal belongings left inside. Your own comprehensive policy is what covers weather events in transit — verify with your insurer that coverage continues while the vehicle is being transported.

How a claim actually works

Note the damage on the bill of lading at delivery, photograph it immediately, and file with the carrier's insurer within the window stated on your paperwork, usually 7 to 15 days. Broker-arranged shipments should be reported to the broker the same day so they can push the carrier.