What is auto transport insurance and why is it important? Simply put, auto transport insurance covers damages to your vehicle in the event of accidents, thefts, and other potential dangers. However, when shipping a vehicle from one place to another, you want to ensure the policy provides the proper protection for your vehicle.
It should be noted that the amount of auto transport insurance varies with each shipping company. For example, some transporters hold themselves entirely responsible for any potential damages accrued during transport. While others may include a disclaimer in their contracts refuting them from any and all possible damages.
Therefore, you should always verify the shipping company’s insurance policy before agreeing to anything. We’ve compiled a short list of things you should know about auto transport insurance.
Ask for Proof of Insurance
Firstly, it is required by law that all auto shipping companies have a valid insurance certificate. Ask for proof up front. Then, inquire about anything relating to the policy. For example, find out if it covers damages while in transit. Also, it is important to know whether the entire car is covered, or just parts. Additionally, you’ll want to know if you are required to pay a deductible should damages occur.
Get it in Writing
Furthermore, before signing anything, get it in writing. In the event of some unforeseen circumstances, you will be protected by the recorded document.
Notify Your Auto Insurance Company
Sometimes your own auto insurer will cover the vehicle while in transport, depending on your policy. However, never assume this is the case. It’s always best to ask. Inquire about your policy when it comes to auto shipping. Or, whether you are required to notify your insurance company or not.
Remove Loose Items from the Vehicle
Apart from this, damage to the interior of a vehicle isn’t usually covered by the shipper. Therefore, you should remove all loose items prior to shipping. This will reduce the risk of damages to the inside. Not to mention, you also reduce the risk of theft, which isn’t covered by most shippers either.
Pre-Inspection
Moreover, a thorough inspection of the vehicle will take place prior to transport. The reason for this is to notate any existing damage. If you can, be present during the inspection. For evidence, take pictures to record its condition prior to shipping.
The Bill of Lading
Upon delivery, the owner will need to fill out the Bill of Lading. This is a report of the vehicle’s condition after transport. Search the vehicle, including the undercarriage. Also, start the engine to ensure there are no signs of mechanical damage. Importantly, once you sign the Bill of Lading, the services are rendered complete. So, if you discover an issue afterwards, the shipper will not be held responsible. However, in the event damages are found, write it on the Bill of Lading and have the driver sign the report. Then, contact the shipper regarding reimbursement.
