What Insurance Is Required for Auto Transport?

All carriers operating in the United States are required by the Federal Motor Carrier Safety Administration (FMCSA) to maintain a minimum level of cargo insurance. This coverage protects your vehicle from damage that occurs while it is in the carrier's care, custody, and control — from pickup to delivery.

Required minimums: cargo insurance of at least $100,000 per occurrence, general liability insurance, and auto liability insurance. Enclosed carriers typically carry higher limits due to the higher-value vehicles they transport.

What Is and Is Not Covered

Typically covered: collision damage during transport, damage caused by carrier negligence, theft of the vehicle while in carrier custody, damage from road debris during transit.

Typically not covered: pre-existing damage (documented on the Bill of Lading), personal items left inside the vehicle, mechanical or electrical failures unrelated to transport, damage from extreme weather events (acts of God), items stored in an enclosed vehicle that exceed carrier's declared value limits.

How to Protect Yourself

• Document your vehicle's condition with detailed photos before pickup
• Review the Bill of Lading carefully and note all existing damage
• Request a copy of the carrier's insurance certificate
• Inspect the vehicle immediately at delivery before signing
• Note any new damage on the delivery Bill of Lading before signing
• File a claim promptly if damage is discovered at delivery

Filing a Damage Claim

If damage occurs during transport, note it on the delivery Bill of Lading immediately. Do not sign a clean BOL if there is damage. Contact the carrier within 15 days of delivery to initiate a claim. Provide photos, the signed BOL, and any repair estimates. Most legitimate carriers resolve valid claims within 30-60 days.