When you ship a car, it travels under the carrier’s cargo insurance, and that is included in the price. You don’t need to buy a separate policy to ship a car. Still, “fully insured” on a quote tells you very little. The coverage belongs to the truck, not to your car: the limit is shared by every car on the load, it has a deductible and exclusions, and federal rules don’t set a minimum for it. Ten minutes of checking before you book tells you whether that coverage is enough for your car, and it makes a claim much easier if something goes wrong.
Key findings
- The carrier’s cargo insurance covers your car. It is part of the shipping price. The company that actually hauls the car is liable for damage while the car is in its care.
- There is no federal minimum for cargo coverage. FMCSA requires liability insurance, but it stopped requiring cargo insurance filings for car haulers in 2011. The amount is set by the carrier, its insurer and the brokers it works with.
- The limit is per load, not per car. Open carriers commonly carry $100,000–$250,000 for the whole trailer, which can hold 7 to 10 cars. Enclosed carriers often carry $250,000 to $1 million or more.
- Personal items aren’t covered. Cargo insurance covers the vehicle. Anything you pack inside travels at your own risk.
- Ask for the certificate of insurance. It shows the cargo limit, the deductible and the policy dates. A company that won’t send one is a company to skip.
PlayDo you need insurance to ship a car?
No, you don’t have to buy anything extra. Under the Carmack Amendment, the federal law that covers shipments across state lines, the motor carrier is liable for actual loss or damage to your car while it is in its care. The carrier’s cargo insurance is what pays for that, and its cost is already built into your quote.
What you do need is to keep your own auto insurance active while the car is on the truck. Your state requires it as long as the car is registered, and it is your backup if the carrier’s coverage falls short (more on that below).
Extra coverage starts to make sense in one situation: when your car is worth more than the carrier’s coverage can realistically pay. That mostly means classic, exotic and high-end cars, and the usual answer is to choose an enclosed carrier with a higher limit rather than to buy a second policy.
The three kinds of coverage involved in a car shipment
Car shipping quotes often say “insured” without saying which insurance. There are three, and only one of them pays for damage to your car:
| Coverage | Who carries it | What it pays for | Does it cover your car? |
|---|---|---|---|
| Cargo insurance | The carrier | Loss or damage to the vehicles on the truck | Yes, this is the one that matters |
| Liability insurance (BIPD) | The carrier, required by FMCSA | Injuries and damage the truck causes to other people and their property | No |
| Broker bond ($75,000) | The broker, required by FMCSA | Money the broker owes carriers or customers, such as unpaid freight bills | No |
Liability insurance is the coverage you can see in public FMCSA records, which is why some companies point to it as proof they are insured. It protects other drivers on the road, not the cars on the trailer. Cargo insurance doesn’t appear in FMCSA records at all, so the only way to see it is the carrier’s certificate of insurance.
Some brokers also carry contingent cargo insurance, which can step in if the carrier’s own policy doesn’t pay. It is useful, but it is the broker’s backup, not a replacement for checking the carrier. If you aren’t sure who is who, here is the difference between a broker and a carrier.
How much coverage do car carriers have?
FMCSA requires interstate carriers to file liability insurance, at least $750,000 for most trucks. It dropped the cargo insurance filing for everyone except household goods movers in 2011, so there is no federal minimum for the coverage that protects your car. In practice, the amount is set by the market: carriers that want loads from brokers and dealers have to meet their requirements.
| Carrier type | Common cargo limit | Cars per load | Rough share per car if every car is a total loss |
|---|---|---|---|
| Open carrier | $100,000–$250,000 per load | 7–10 | About $10,000–$35,000 |
| Enclosed carrier | $250,000–$1,000,000+ per load | 1–7 | Often enough for most single high-value cars |
| Small hauler or pickup with a 2–3 car trailer | Often $100,000 or less | 2–3 | About $30,000–$50,000 |
The per-load limit is the detail most people miss. Most claims are a scratch, a dent or a cracked windshield on one car, and any limit covers those easily. The limit only becomes a problem in a bad accident, a fire or a theft, when several cars on the same truck are damaged at once and all of them claim against the same pot. If your car is worth $60,000 and it rides on an open trailer with nine other cars under a $250,000 policy, it’s worth asking about that scenario before you book.
What car shipping insurance covers, and what it doesn’t
Every policy is different, so read the certificate and the contract. These are the usual lines:
| Usually covered | Usually not covered |
|---|---|
| Damage during loading, unloading and transport: dents, scratches, broken glass, damage from straps or ramps | Personal belongings left in the car |
| Damage from an accident involving the truck | Damage that was already there at pickup |
| Theft of the vehicle while in the carrier’s care | Mechanical or electrical failures not caused by the transport |
| Fire on the truck | Loose or poorly secured aftermarket parts, such as spoilers and body kits |
| Damage caused by another car on the trailer, such as a leak from the car above | Small chips from road debris on an open carrier, which carriers often dispute |
Personal items are the exclusion that catches people most often. The car is insured as cargo, but the boxes in the trunk are not, and many carriers limit what you can pack at all. See what you can leave in your car when shipping it.
Road debris is the gray area on open trailers. Carriers often argue that small stone chips are a normal risk of open transport, so if your paint is new or valuable, enclosed transport is the cleaner answer.
The deductible: who pays it?
Most cargo policies have a deductible, often $500–$2,500. That deductible is between the carrier and its insurer. The carrier is liable for the damage, so you should not have to pay its deductible, but some contracts try to push it onto the customer, or the carrier pays small claims out of pocket to avoid touching its policy.
Before you book, ask one direct question and get the answer in writing: “If my car is damaged, will I pay any part of your deductible?” A company that is vague about this will be vaguer after the damage.
Does your own car insurance cover shipping?
Often, yes. If you have comprehensive or collision coverage, your own policy may pay for damage that happens during transport, minus your deductible, and then recover the money from the carrier. This can be faster than waiting for the carrier’s insurer, especially when the carrier is slow to respond.
Policies differ, so call your insurer before the car ships and ask two things: does your coverage apply while the car is on a commercial truck, and what would you need from them if you file? If you only carry liability coverage, your policy won’t pay for damage to your own car, and the carrier’s cargo insurance is your only protection.
Supplemental insurance: when it is worth it
Some brokers and third-party insurers sell extra shipment coverage. It can make sense when:
- Your car is worth clearly more than its share of the carrier’s per-load limit.
- Your own policy doesn’t cover the car while it is on a truck, or you only carry liability coverage.
- You want the carrier’s deductible covered no matter what the contract says.
Before you buy, ask whether it pays first or only after the carrier’s insurance has refused, what it excludes, and who you would file with. For most everyday cars, a carrier with a clear certificate and a good record is protection enough. For a valuable car, choosing an enclosed carrier with a high limit usually does more than any add-on.
How to check a carrier’s insurance before you book
- Find out which carrier will haul the car. If you book through a broker, ask for the carrier’s name and USDOT number once the car is assigned. The carrier’s insurance is the one that pays.
- Check the carrier’s FMCSA record. Our car shipping company lookup shows whether its operating authority is active and its liability insurance is on file. A carrier without active authority shouldn’t be moving your car at all.
- Ask for the certificate of insurance. Check the cargo limit, the deductible, the policy dates and that the name on the certificate matches the carrier.
- Call the insurance agent listed on the certificate. A short call confirms the policy is active and belongs to the company that will actually haul your car. Being shown another company’s insurance is a sign of double brokering, one of the common auto transport scams.
- Compare the limit with your car’s value. Use the per-load math above. If the gap worries you, look at enclosed carriers or ask the company about its contingent or supplemental coverage.
- Read the damage section of the contract. Look for who pays the deductible, how quickly you must report damage and what is excluded.
FMCSA lists its insurance requirements for each type of company on its insurance requirements page.
Insurance only pays if you can prove the damage
The best policy in the world won’t help if there is no record of your car’s condition. Most denied claims come down to evidence, not coverage:
- At pickup: wash the car, take dated photos and a video of every panel, the roof, the wheels and the odometer, and make sure the driver notes every existing mark on the Bill of Lading.
- At delivery: inspect the car before you sign, in daylight if you can, and write any new damage on the Bill of Lading while the driver is there.
- Keep everything: the Bill of Lading, the contract, the certificate of insurance and all messages with the company.
Our car shipping checklist walks you through both inspections. If your car does arrive damaged, our car damage claim guide sets out your deadlines under federal law and prepares a claim letter for the carrier.
Where to find insured car shipping companies
Every company in our directory is checked against FMCSA records, including its operating authority and liability insurance on file. Some places to start:
- All verified car shipping companies, with filters by state and services.
- Enclosed car transport companies, which usually carry higher cargo limits.
- Car shipping companies by state, to compare local companies first.
Ask each company you shortlist for its certificate of insurance along with the quote. To see what your move should cost, use the car shipping cost calculator.
Methodology
Federal requirements come from FMCSA’s insurance rules (49 CFR Part 387), its 2010 rule that ended cargo insurance filings for carriers other than household goods movers from 2011, and the Carmack Amendment (49 U.S.C. § 14706). Typical cargo limits and deductibles reflect what car haulers commonly carry and what brokers commonly require; they are not legal minimums, and individual policies vary. This article is general information, not legal or insurance advice.
Frequently asked questions
Do you need insurance to ship a car?
You don’t need to buy a separate policy. The carrier’s cargo insurance covers your car while it is in the carrier’s care, and its cost is included in the price. Keep your own auto insurance active during the move.
Is my car insured during shipping?
Yes, by the carrier’s cargo insurance. Check the certificate of insurance for the cargo limit and the deductible, because the limit is shared by all cars on the truck.
How much does car shipping insurance cost?
The carrier’s cargo insurance costs you nothing extra; it is part of the quote. Supplemental shipment coverage, if you choose to buy it, is priced separately by the broker or insurer that sells it.
What does “fully insured car shipping” mean?
Usually just that the carrier has cargo and liability insurance. It doesn’t tell you the limit, the deductible or the exclusions, so ask for the certificate of insurance instead of relying on the phrase.
Does the broker’s insurance cover my car?
Usually not directly. The broker’s $75,000 bond covers money it owes, not damage to cars. Some brokers carry contingent cargo insurance as a backup, but the carrier’s cargo insurance is the main coverage.
Are personal items in my car covered?
No. Cargo insurance covers the vehicle, not belongings packed inside it. Remove valuables, and keep anything you do leave light and out of sight.
Is insurance different for international car shipping?
Yes. Ocean shipping is covered by marine cargo insurance, which is usually bought separately and priced as a share of the car’s value. See how much it costs to ship a car internationally.