Are you planning to transport your vehicle? Whether you’re moving across the country or selling a car online, it’s essential to understand the ins and outs of auto transport insurance. Accidents happen, but having the right coverage in place can provide peace of mind and financial protection. In this blog post, we’ll dive into everything you need to know about auto transport insurance requirements. From understanding what it is to learning about the different types available and the minimum requirements, we’ve got you covered! So, let’s get started on this journey together – ensuring your vehicle arrives safely and securely at its destination!

What is Auto Transport Insurance?

Auto transport insurance is a type of coverage specifically designed to protect vehicles during the process of transportation. When you your vehicle to an auto transport company, there are inherent risks involved, such as damage or theft. Auto transport insurance acts as a safeguard against these potential hazards.

There are two primary types of auto transport insurance: open and enclosed. Open transport involves transporting vehicles on an open trailer, exposing them to external elements like weather conditions and road debris. On the other hand, enclosed transport utilizes fully covered trailers that provide additional protection for your vehicle.

It’s important to note that auto transport insurance is separate from your personal car insurance policy. Your regular car insurance may not cover damages incurred during transit, which makes obtaining specific auto transport insurance necessary.

Obtaining adequate coverage ensures that any unforeseen incidents during transit won’t leave you with hefty out-of-pocket expenses or lengthy legal battles. It offers peace of mind knowing you’re financially protected if any unfortunate events occur while your vehicle is being transported.

What are the Different Types of Auto Transport Insurance?

When it comes to auto transport insurance, there are different types of coverage available to ensure the protection of your vehicle during transportation. Understanding these options is crucial to make an informed decision.

One type of auto transport insurance is called Open Carrier Insurance. This is the most common and affordable option for shipping vehicles. It provides coverage against damages caused by accidents, theft, or vandalism while your vehicle is being transported on an open carrier trailer.

Another type of insurance that you can opt for is Enclosed Carrier Insurance. Unlike open carriers, enclosed carriers provide a higher level of protection as they shield your vehicle from external elements such as weather conditions and road debris. Enclosed carrier insurance typically comes at a higher cost due to the added security and protection it offers.

In addition to these primary types of coverage, some companies also offer additional policies such as Gap Insurance or Rental Reimbursement Coverage. Gap Insurance covers the difference between what you owe on your car loan and its actual value in case it gets damaged during transit. Rental Reimbursement Coverage reimburses you for any rental vehicle expenses incurred if there are delays in transporting your car.

What are the Minimum Requirements for Auto Transport Insurance?

To ensure a safe and secure transport of vehicles, auto transport insurance is essential. Whether you are a car owner looking to ship your vehicle or an auto transporter responsible for moving multiple cars at once, having the right insurance coverage in place is crucial. In this article, we have explored what auto transport insurance is, the different types available, and now let’s dive into the minimum requirements for auto transport insurance.

The specific requirements for auto transport insurance can vary depending on various factors such as state regulations and the type of carrier being used. However, here are some general minimum coverage requirements that most carriers must meet:

1. Liability Insurance: This is the most basic form of coverage required by law. It provides protection against any damage caused to other people’s property or injuries sustained by others due to accidents involving the transported vehicles.

2. Cargo Insurance: This type of coverage protects against damage or loss of vehicles being transported during transit. It provides compensation in case of theft, fire, vandalism, or collision while in transit.

3. Comprehensive Coverage: While not always mandatory, comprehensive coverage offers additional protection beyond liability and cargo insurance. It covers damages caused by events like natural disasters (hailstorms or floods), falling objects (trees or debris), or even theft.

4. Workers’ Compensation Insurance: If you have employees who handle loading and unloading operations during transportation processes, it may be necessary to have workers’ compensation insurance in place to cover any work-related injuries they might sustain.

It’s important to note that these are just general guidelines for minimum requirements; actual regulations may differ based on individual circumstances and jurisdictions where services are provided.

In conclusion, Understanding the minimum requirements for auto transport insurance is vital when shipping vehicles domestically or internationally. By ensuring compliance with these standards, both car owners and auto transporters can protect themselves financially from potential risks involved in transporting vehicles from one location to another.


– Provides protection against financial loss due to damage or loss of a vehicle during transit
– Helps to cover the costs of repairs or replacement of a vehicle that is damaged during transport
– Gives peace of mind knowing that your vehicle is protected
– Allows for the transfer of vehicles between states without any worries


– Can be expensive to purchase
– May require additional paperwork and documentation to obtain coverage
– May not cover certain types of damage or loss
– Does not cover the cost of repairs or replacement of a vehicle that is stolen during transport


1. Is auto transport insurance required?

Yes, auto transport insurance is required when shipping a vehicle. It is important to have the right coverage in place to protect your investment and ensure that your car arrives safely.

2. What type of coverage should I get?

The type of coverage you should get depends on the value of the vehicle being shipped. You can find more information about specific coverages on the website of your chosen auto transport company.

3. How much does auto transport insurance cost?

The cost of auto transport insurance depends on the value of the vehicle and the level of coverage chosen. Generally speaking, it can range from a few hundred dollars up to several thousand.

4. Are there any exclusions I should be aware of?

Yes, it’s important to check with your chosen auto transport company for their specific coverage exclusions. Generally, these include things like weather-related damage, mechanical failure, and acts of God.

5. Can I purchase additional coverage?

Yes, most auto transport companies offer the option to purchase additional coverage for an additional fee. This allows you to tailor the coverage to your specific needs and provides extra protection in case of an accident or other unforeseen event.


1. Coverage for damage caused by fire, theft, collisions, and overturns.
2. Payment for the repair or replacement of your vehicle in the event of a covered loss.
3. Reimbursement for towing and labor costs associated with a covered loss.
4. Coverage for personal items stored in your vehicle.
5. Protection from financial risk associated with liability and third-party property damage.
6. Coverage for rental car costs incurred during the repair period.
7. Payment for medical expenses in case of an injury sustained in an auto transport accident.
8. Coverage for additional living expenses in case of an extended repair period.
9. Protection from uninsured and underinsured motorist claims.
10. Coverage for damage caused by natural disasters or weather-related events.