Knowing what you’re getting into before agreeing to something is always important. This is especially true when it comes to auto transport.
Car shipping companies must have liability and cargo insurance for their vehicles. This should cover any damages that occur during the shipping process.
Liability Coverage
It would help if you always asked about liability coverage during a Maryland to California auto transport. Liability insurance is a mandatory policy that covers any damages caused by the auto transporter while your vehicle is in transit.
It’s important to know the terms and conditions of this policy because it can vary from carrier to carrier. Understanding how it will apply if your vehicle is damaged in transit due to an Act of God is also essential.
Typically, liability coverage is $1,000,000 per accident. You’ll need to confirm the exact amount of liability coverage with the transport company or broker before submitting your car for transport.
It would help if you also asked about cargo insurance, additional coverage that can be applied to your car during shipping. This coverage may cover up to $250,000 in damages.
Physical Damage Coverage
Physical damage coverage protects against damages to your car from collisions, theft, fire, and vandalism. Often, this coverage is required by lenders as part of leasing or loan agreements.
This type of insurance is also important for truckers and businesses that use trucks to ship products. If your truck is damaged, this coverage can help replace it.
There are two different types of physical damage insurance: comprehensive and collision. Collision covers damage to your vehicle after you hit another object, such as a pole or fence.
The amount of physical damage coverage you need depends on several factors, including your car’s value and driving history. The insurance company may require you to submit a Stated Amount, the best estimate of your car’s current value.
Theft Coverage
Car insurance provides liability coverage in case you damage someone else’s vehicle or cause an accident. But it does not cover the theft of your car or its parts unless you purchase comprehensive auto insurance.
If your car is stolen, you must file a police report and make an insurance claim. Your homeowners or renters policy may also reimburse you for your personal property, including electronics, jewelry, clothing, and other items stolen from your car.
But be sure to check the fine print on your policy since many standard policies have limits and sub-limits on specific types of possessions. This can be a huge pain, especially if you have high-value items that could cost money to replace.
To reduce the chance of your personal belongings being stolen, remove all loose items from your vehicle before handing them to a shipping company. You should also ask your car shipping company if they offer additional insurance to cover items not covered by their liability and cargo insurance.
Comprehensive Coverage
When you ship a car, it is important to understand what insurance coverage your auto transport company offers. This will help you avoid costly surprises and unnecessary hassles down the road.
Most reputable car shipping companies offer comprehensive cargo insurance to protect your vehicle in transit. This coverage includes things like weather events, such as hail or floods.
It also covers theft, damages caused by a driver or other people on the road, and vandalism.
Many auto transport companies provide basic liability insurance. In contrast, others sell additional coverage for an extra fee. Gap coverage, for example, can pay the gap between the carrier’s insurance and your deductible.