A vehicle is a pretty big investment, and very few people out there are able to simply go to the dealer and purchase another one if something should happen to the one they have. That’s why it’s so important to have special auto insurance for a vehicle that is being shipped. If something should happen to the vehicle while it is being transported, the owner of the vehicle may find themselves in a financial pickle. To avoid this, purchasing a special policy is a must, but like all policies out there, a few requirements must be met before you can consider yourself covered.

Understanding Basic Coverage Requirements

By law, all car transporters and shippers have to carry minimum liability insurance no matter what. When you are searching for the right shipper, ask them about the coverage they have. If they say you have to purchase coverage and they offer none, don’t choose them to ship your car. The company should also have something called cargo insurance. If the shipper is insured correctly, this insurance will cover any damage that might be done to your car while it is in transit after the deductible is paid. Be aware that you are responsible for that deductible. Remember that all companies and the coverage they have will vary, so take time to review the policy they offer before you choose to do business with them.

To be certain you are dealing with a good company, request a copy of their insurance certificate. All transporters have to give you this on request, or they are breaking the law. You should take this an extra step forward and be certain to verify the information that you find on this certificate. One method of reviewing this information is by checking with the US Department of Transportation through their SAFER system.

Most companies also offer additional insurance options. Generally, these must be requested and purchased before the vehicle is released to the company.

How Much is Enough?

The amount of insurance coverage that you have on your vehicle at the time it is shipped should be enough to cover the vehicle if it should, for some reason, be totaled. Minimums that you’ll get for free from the shipping companies will often be far less than the amount you’ll really need. This is why you need to know the terms of the insurance policy that the shipping company carries so that you can make an informed decision on whether you should purchase additional coverage or not.

To take this, and protecting your vehicle, a step further, stop for a moment and ask prospective companies the following questions about the insurance policy they carry.

·         What are the damage types that the insurance policy covers?

·         Is the entire car covered?

·         What kind of deductible am I responsible for?

·         Are my modifications covered?

·         Can I buy additional coverage if I want to, and how much is it?

Other Options

Purchasing additional coverage through the shipping company isn’t always the last resort for those seeking great coverage for vehicles being sent to another place. Checking with your normal auto insurance company might net you some great results and may save you a ton of money too. If you do opt for this route, be sure that you let the transport company know about it.

Filing A Claim

The most important thing to remember, when you take delivery of your vehicle, is that you need to inspect it carefully. Any damage should be noted on the paperwork you and the driver will sign, completing the transaction. Make the notes on the Bill of Lading as specific as possible to avoid problems later. While most vehicles will arrive without any damage, if you did find some, be sure to contact the insurance company right away. There is a limit on how much time can pass between delivery and a claim, so don’t wait. File immediately for the best results and always be sure you have documentation of both the vehicles ‘before’ condition and the insurance policy itself at all times.