The short answer: No. You do not need to have your own auto shipping insurance to ship a vehicle. In fact, the United States Department of Transportation legally requires all auto shipping companies to provide liability insurance for each vehicle that is shipped. However, it should be noted that this only applies to transport companies, and not brokers. This means, if a broker contracts with a shipper, then the broker does not need to have auto shipping insurance.
Furthermore, cars that are shipped rarely report any damages. Still, insurance is important, nonetheless. Even if the vehicle is being delivered, insurance guarantees your sanity, and peace of mind.
Auto Shipping Insurance Requirements
As previously mentioned, every lawfully authorized auto transport company will provide liability insurance. They are required to have an MC (Motor Carrier) number as well. Nevertheless, it doesn’t hurt to ask if they offer cargo insurance too.
Is it enough?
That all depends on you. While the amount of insurance fulfilled by the shipper will suffice, you may feel that it isn’t enough for your vehicle type. It is important that you are comfortable with the coverage offered. Also, understanding the exact terms of the insurance policy provided is critical as well. Additionally, it’s always a good idea to let your own insurance company know that you are shipping your vehicle.
Lastly, once the vehicle has been delivered, look for damages. If you are unable to accept the vehicle, then assign someone the task of assessing the vehicle for any damages on your behalf. If, by chance, the vehicle was damaged while in transit, record it on the “Bill of Lading” and have the driver sign before taking the vehicle. Pictures are also a good way to document damages. Nevertheless, contact the shipping and insurance company if damages are present.