What's the Difference Between Auto Transport Insurance and Personal Car Insurance?

When you're shipping your car, one of the biggest questions people have is about insurance. Many assume their personal auto insurance will cover any damage during transport. This is a dangerous assumption. Let me explain the critical differences between auto transport insurance and your personal car insurance policy.

How Auto Transport Insurance Actually Works

Carrier Insurance: Your Primary Protection

When you ship your vehicle with a professional carrier, their cargo insurance becomes your primary coverage during transport. This is separate from your personal auto policy. Most legitimate carriers carry between $100,000-$250,000 in cargo insurance. But there are important limitations you need to understand.

The Deductible Reality

Most carrier insurance policies have deductibles ranging from $250-$500 per claim. This means if your vehicle sustains $800 in damage during shipping, you'd pay the first $500. The carrier's insurance would cover the remaining $300. This is a crucial detail many shippers overlook. It's an important part of understanding your open car carrier transport cost. Or if you're looking for enclosed auto transport for luxury cars, the same rules apply.

Why Your Personal Car Insurance Typically Doesn't Apply

The Commercial Transport Exclusion

Most personal auto insurance policies contain exclusions for commercial transport. When your vehicle is being transported professionally, it's considered commercial use, not personal use. Your insurance company views this as a business transaction between you and the transport company. This applies whether you're shipping a car from Houston to Los Angeles or using nationwide vehicle shipping door to door services.

Limited or No Coverage During Professional Shipping

Even if your policy doesn't explicitly exclude commercial transport, the coverage is often minimal or non-existent. You're essentially relying on the carrier's insurance as your primary protection during shipping. This is why how to choose a reliable auto transport broker is so important.

Key Coverage Differences You Need to Understand

What's Covered Under Auto Transport Insurance?

• Vehicle Damage: Damage occurring during loading, transit, or unloading.
• Theft: Comprehensive coverage for stolen vehicles.
• Accidents: Coverage for collision-related damage.
• Fire and Natural Disasters: Protection against catastrophic events.

What's Typically NOT Covered?

• Personal Items: Anything left inside your vehicle. These are not covered.
• Pre-existing Damage: Any damage present before shipping. This must be documented.
• Mechanical Failures: Problems unrelated to transport. This includes engine trouble.
• Wear and Tear: Normal road wear during transit. Small nicks and dings are part of it.

The Critical Role of Documentation

Pre-Shipment Inspection is Non-Negotiable

Before your vehicle is loaded, both you and the carrier must document its condition thoroughly. This includes:

• Detailed photos from all angles.
• Video walkaround. This provides visual proof.
• Written documentation of existing damage. Signed by both parties.
• VIN verification. We use VIN scans at AMG Transport Co. to ensure accuracy.

The Bill of Lading: Your Legal Proof

The Bill of Lading isn't just paperwork. It's your legal contract and proof of condition. Any damage not noted on this document at pickup will be nearly impossible to claim later. Don't skip this step. This is essential for single-car transport vs multi-car load cost considerations too.

How to Verify Your Coverage Before Shipping

Ask for Proof of Insurance

Never assume coverage exists. Always request:

• Certificate of Insurance from the carrier. Get a copy.
• Policy limits and deductibles. Know your exposure.
• Effective dates covering your shipment. Ensure it's current.
• Contact information for claims. Who do you call if something happens.

Understand the Claims Process

Know exactly what to do if damage occurs:

• Document new damage immediately at delivery. Do this before the driver leaves.
• Get the driver to acknowledge it on the BOL. Their signature is key.
• Take timestamped photos. Your phone can do this.
• Contact your broker immediately. We can guide you.
• File the claim within the specified timeframe. Don't delay.

Why Working With a Broker Protects You

At AMG Transport Co., we only work with vetted, insured carriers. We verify their insurance coverage before assigning your shipment. This is one of the key benefits of working with an experienced car shipping broker you can trust. We also accept Stripe deposits, making your initial commitment secure and easy. We understand how long does car shipping take cross country. We set realistic expectations, including knowing when we can pick up your vehicle from our 72-hour pickup windows. We offer honest quotes, making us a top vehicle logistics company Texas.

Carriers are busy. They're on the road. They don't want to deal with paperwork or problems. That's our job. We handle the frontend sales, the coordinating, and the backend systems. We're a buffer to keep rates reasonable. Carriers also have their own reasons for not working directly with customers. Sometimes people don't pay. A broker like us fills that gap. We get the job done right. It won't be dirt cheap. But a good broker has solid relationships with carriers. They're invested in taking care of our clients. A vehicle's location can change by the hour. We manage that complexity.

You couldn't work with most carriers directly, even if you wanted to. So working with an experienced broker like AMG Transport Co. isn't just a good idea, it's almost required. Whether it's relocating to Florida ship car from Texas, multi-car transport for families, or shipping a non-running vehicle what to know, we have you covered. We can answer questions about shipping an SUV vs sedan cost difference. We're a Texas based auto transport broker nationwide.

The Bottom Line: Don't Rely on Assumptions

Assuming your personal insurance will cover transport damage is one of the most common and costly mistakes in auto transport. Always verify carrier insurance coverage before shipping, maintain thorough documentation, and understand that you're primarily protected by the carrier's policy, not your personal insurance. This is true for open carrier car shipping pros & cons, and for luxury vehicle transport enclosed vs open. For auto transport quotes how to compare, trust our straightforward approach. We have a strong auto transport safety record and reputation.

Ready to ship with confidence? Get your free quote from AMG Transport Co. and rest easy knowing your vehicle is properly protected. Visit https://amgtransportco.com/get-quote.

Written by Mike Matthews, Logistics Manager at AMG Transport Co.