The Short Answer: Yes
Every legitimate auto transport carrier is required by federal law to carry cargo insurance. If your car is damaged during transport, there is coverage. But like most insurance, the devil is in the details.
What Carrier Insurance Covers
Carrier cargo insurance typically covers damage that happens while your vehicle is on their truck — things like:
- Dents and scratches from road debris
- Damage during loading or unloading
- Damage from an accident involving the carrier
- Weather-related damage (hail, fallen branches)
Coverage limits vary by carrier, but most carry between $100,000 and $1,000,000 in cargo insurance. For a standard vehicle, that's more than enough.
What It Doesn't Cover
Here's where people get surprised:
Personal items inside the car. If you left a laptop in the backseat and it disappears, the carrier's insurance won't cover it. Carriers are licensed to transport vehicles, not belongings.
Pre-existing damage. If a scratch was already there before transport, you can't claim it. This is why the Bill of Lading (condition report) at pickup is so important.
Mechanical issues. If your engine was already making a noise before shipping, that's not a transport damage claim.
Damage you can't prove happened during transport. If you signed the delivery BOL saying "no damage" and then call a week later, the claim is essentially dead.
How Claims Work
If your car arrives with new damage, here's the process:
1. Document it at delivery. Note the damage on the delivery Bill of Lading before you sign. Take photos.
2. Contact your broker. At AMG, we start the claims process immediately. We act as your advocate with the carrier.
3. The carrier files with their insurer. They review the pickup BOL, delivery BOL, and photos from both ends.
4. You get paid. If the claim is valid and documented, the carrier's insurance pays for the repair. Typical timeline is 30-90 days.
The Role of Your Broker
This is one of the biggest reasons to use a reputable broker instead of booking direct with a random carrier. When something goes wrong, your broker:
- Helps you file the claim correctly
- Follows up with the carrier on your behalf
- Knows which carriers have a history of claim issues
- Can escalate if the carrier is unresponsive
At AMG, we only work with carriers we've vetted. We check their insurance certificates, safety records, and claims history before we dispatch them. That said, accidents can still happen — the difference is how they get handled.
Should You Buy Additional Insurance?
Some companies offer supplemental transport insurance for an extra fee. Is it worth it?
For most cars: no. The carrier's coverage is sufficient for standard vehicles.
For high-value vehicles: maybe. If you're shipping a $100,000+ car, supplemental coverage with a lower deductible and faster claims process might give you peace of mind. Your regular auto insurance may also provide some coverage during transport — call your agent and ask.
How to Verify a Carrier's Insurance
Before your car goes on any truck, you (or your broker) should verify:
1. FMCSA authority. Every carrier needs an active MC number. Check it at safer.fmcsa.dot.gov.
2. Insurance on file. The FMCSA listing shows whether the carrier has active insurance.
3. Coverage amount. Ask for a copy of their insurance certificate. Any legitimate carrier will provide one.
At AMG, we verify all of this before dispatching. You never have to do this homework yourself.
The Bottom Line
Your car is insured during transport — that's the law. But protection really comes down to documentation. Take photos, review the BOL carefully, and work with a broker who has your back if something goes sideways.
Ready to ship with confidence? Get your quote — we'll walk you through exactly how your car is protected.