Everything You Need to Know About Liability and Insurance Before Shipping a Car

Do you need insurance to ship a car? What is the posibility of getting into legal trouble without an insurance? You are not the only one of you have been thinking about this. 

You see, when it comes to shipping a car, there are a lot of careful planning that you need to take care of. And one of these important aspects is the insurance coverage.

Whether you’re moving to a new state, buying a vehicle from another location, or sending a car to a family member, understanding liability and insurance ensures your vehicle is protected throughout transit.

but is it a legal necessity for yu to take care of the insurance when shipping a car? and what are some of the things that you need to take care of?

Hi. In today’s blog, this is something that I want to talk about. Therefore, if you have bee trying to find the answer to this question, youhave come to the right place.

So, keep reading this blog till the very end, and thank me later…

Understanding Carrier Liability

All auto transport companies must carry liability insurance by federal law for damage done by the carrier in transit. But that coverage is not the same across different providers.

While typically, it is called upon during the accident caused by the transporter, it does not cover things such as theft, vandalism, or damage caused due to extreme weather conditions.

Before you hand over your vehicle, you should request proof of insurance from the transport company.

By verifying the coverage limits and exclusions, they can confirm those expectations. You might want to look into purchasing supplementary protection in the case that the liability coverage does not meet your requirements.

Comprehensive and Personal Auto Insurance: Do You Need Insurance To Ship A Car?

While it is not a mandatory thing to get insurance for shipping your vehicle, it is best that you have one. This is because having an insurance ensures that you are able to protect your car against any sort of damage during the transit.

“But I do have an auto insurance!” Congratulations, if that’s the case. However, let me burst your bubble! Your personal auto insurance may already provide some level of coverage for transporting vehicles.

Therefore, you need to check with your insurer if that extends to damages or losses while being towed or transported.

Some coverage denies collision damage but does cover things like fire or theft, which may help if the carrier has coverage gaps.

If your current insurance doesn’t cover your transport exposures, it makes sense to buy a comprehensive vehicle insurance policy or a temporary full-supplement plan.

That will provide peace of mind. While it looks like an additional burden, it protects your vehicle from possible monetary losses.

Steps to Take Before Shipping

Preventive measures have been availed before vehicle shipping to have an easy process and avoid possible problems:

• Inspect Your Vehicle: Conduct a thorough inspection of your car, noting any existing dents, scratches, or mechanical issues. Take detailed photos from multiple angles to have a record of its condition before shipment.
• Empty All Belongings: Auto transporters normally do not cover personal belongings left inside the vehicle; thus, your valuables and any loose items should be emptied to avert loss or damage to them during auto transport.
• Check for Leaks and Mechanical Issues: The vehicle should be in order before shipping it and fix any leaks and mechanical issues to avoid incidences.
• Confirm Insurance Details in Writing: Ask for a copy of the transport company’s insurance and also provide the terms before signing any agreement.

What to Do If Damage Occurs

After delivery, please inspect the vehicle and compare it to its pre-shipping photos. If you see any damage (major or minor), note it down in detail immediately. After that, inform your carrier about the same.

Damage claims, most likely required by each transport company, will need written and photographic proof. The sooner an issue is reported, the better the chances of getting compensated. 

Arkansas car shipping services for those wanting reliable shipments offer various carriers with different insurance options.

How Much Does the Insurance Cover?

Understanding what are the things that your insurance is going to cover while you are shipping your car is very important. This lets you have a clearer picture of how safe you will be financially when shipping your car.

In most cases, if you are trying to ship a high value or antique vehicle, the insurance amount will not be able to cover all your needs financially. Therefore, in such a case, it i best that you get yourself additionally insurance.

Apart from that, it is also extremely important that you take care of how you are planning to ship your car: enclosed carrier or open carrier. TBH, I would advise you to choose an enclosed carrier of it is a high value vehicle.

Having a Transit Insurance

Just in case you did not know this yet, when you are trying to ship a car, having an insurance for transit is a legal requirement for most car transporters.

Yes, you read that right! All vehicles in transit must have cargo insurance, and that’s a compulsion. This helps ensure that you are able to cover the replacement or repair costs in case there is an accident.

Take Care of Insurance While Shipping 

Grasping the intricacies of liability and insurance coverage before you start your car-shipping journey is extremely important. Why? Well, that’s because it helps you avoid the not-so-great financial surprises.

Dive deep into the policies of your carrier, seeking clarity on their protections and responsibilities. Don’t forget to engage.

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