Many people who transport their vehicles have many concerns, but one of the big ones is if you and the company have the proper insurance to cover your vehicle in the case of an accident. Most companies will say that they can only insure your car when it is on their carrier, which makes sense, but they can only insure so much. Sometimes, it is not the auto transport company’s fault and it was a maintenance issue within your car that only reveals itself during a long transport. Whose insurance will come in at this point? It is a complicated process, but in this situation, sometimes both insurances are needed, sometimes only one party’s insurance is needed. Allow us to explain the basics and what each party is liable for what.
Auto Transport Company’s Liability
Like we said previously, most companies will only cover your vehicle for the duration of the transport (the time it is on the carrier). If a company still ships to a yard from your home, it may not be insured during that time. Your insurer can reject the claim, but if they settle, they can increase your premiums.
What is Covered
The general rule is that the more expensive a service is (choosing an enclosed carrier over an open carrier). This is true, but you may still only be covered during transport. You still might have to increase your premiums if you have exotic or luxury car during a transport. It is best to ask an auto transport company some specific conditions and see the extent of what they offer with their insurance.
An auto mover will (or should) inspect your vehicle and note any prior dents, damages, and special needs. Make sure that you are there to compare notes and insure that they do a great job before getting the loading portion started. This must happen once your vehicle is delivered as well, and make sure to inspect your vehicle before accepting it. Take pictures of the car before and after with different angles to see if your vehicle suffered any damages during transport.