How to Claim Insurance If Your Car Is Damaged During Auto Shipping
Shipping your car across the country is a great option when you have to move for a new job, go south for the winter, or buy a vehicle from a seller far away. You trust an auto transport company to take care of your valuable asset. But if something goes wrong and your car gets damaged, what do you do?
Finding out that there is damage to your car when it is delivered can be very stressful, but it doesn’t have to be a huge financial problem. Learning how to handle a claim under car shipping insurance helps protect your investment and prevents unexpected losses. The process is easy if you are ready.
This guide explains exactly what steps to take, how to document damage correctly, and how working with an honest partner like Preowned Auto Logistics makes the claims process easy and stress-free.
Understanding Car Shipping Insurance Coverage
Your peace of mind starts before your car is even loaded onto a carrier. Many people think their personal auto insurance is the primary coverage, but that’s rarely true.
Carrier insurance vs. personal auto insurance
The primary insurance during transport is the carrier’s cargo insurance. The Federal Motor Carrier Safety Administration (FMCSA) requires all licensed auto transport carriers to have a minimum level of liability and cargo insurance. For carriers using vehicles weighing over 10,001 pounds, the minimum liability coverage is usually $750,000.
Your personal auto insurance policy may provide some secondary protection; however, always check with your provider, as many policies exclude damage that occurs while the vehicle is under the care of a shipping company. The carrier’s insurance should be the first line of defense.
Typical coverage inclusions
Car shipping insurance coverage is complete. It usually protects against damage that happens during transport, including loading and unloading. This includes exterior damage such as dents, scratches, and broken windows, as well as structural damage from an accident; however, it does not cover pre-existing damage or mechanical failures unrelated to transport, or personal items left inside the vehicle. Federal law prohibits transporting personal belongings in a shipped car because they are not insured.
Why verifying coverage matters
Always ask for proof of the car shipping company’s insurance before you book; a good broker like Preowned Auto Logistics vets every carrier in its network to ensure they are fully licensed and have sufficient insurance. We can provide you with their insurance certificate if you’d like, so you can ship with confidence knowing your vehicle is protected.
Inspecting Your Vehicle before Shipping
The foundation of any successful car shipping insurance claim is built before your car ever leaves your driveway. A thorough pre-shipment inspection creates an official record of your vehicle’s condition, which serves as your most crucial piece of evidence.
The bill of lading (BOL) is your contract.
The Bill of Lading is more than just a receipt; it’s a legal document that outlines the terms of the shipment and, most importantly, includes a condition report. When the driver arrives for pickup, they will conduct a joint inspection with you to note any pre-existing dings, scratches, or dents on the BOL. This document is your baseline for the vehicle’s condition.
Document everything with photos and videos.
Don’t just trust the driver’s report. Keep your own good records.
- Wash your car: A clean car shows all problems. Dirt and filth can cover minor scratches or dents.
- Use bright light: Look at your car during the day or in a well-lit garage.
- Take clear photos: Get shots of every side of your car, even the top, bumpers, and wheels. Take close-up shots of any damage that is already there.
- Please make a video walk-around: a long video of you walking around the car, inside and out, that shows how it looked before shipping.
Note all pre-existing damage.
Be honest and thorough about existing damage. Pointing out a small scratch to the driver and having it noted on the BOL prevents disputes later. It shows that you are diligent and helps separate old damage from any new vehicle transport damage.
At Preowned Auto Logistics, we work with carriers who understand the importance of a detailed, joint inspection. This transparent process protects both you and the driver, creating a transparent and agreed-upon record from the very beginning.
Identifying and Reporting Damage
Your job at delivery is just as important as it was at pickup. The time after delivery is usually your only chance to show new damage and start the auto transport claims process.
Do a complete check after delivery.
Avoid taking your car in the dark or bad weather. You need to see it well. Before the driver leaves and you sign the delivery paper, do a full check. Use the same careful way you did before shipping.
Check conditions against the original BOL.
With the driver there, take out your copy of the first Bill of Lading. Walk around the car and check how it looks now against what was said before shipping. Look at every part, roof, windows, and bumpers for any new scratches, dents, or other damage that was not noted at pickup.
Write down all new damage on the delivery report.
If you see any new damage, no matter how small, you must write it down on the final Bill of Lading before signing. This is not up for discussion. Be specific in your description, like “3-inch scratch on driver-side door” or “small dent on front right fender”. Have the driver acknowledge and sign the report, noting the new damage. Signing a clean BOL without noting damage is equivalent to stating that the car arrived in perfect condition, which can immediately invalidate your claim.
Report it right away.
Once they note damage on the BOL, your chances of a successful increase by a margin increase; call the shipping company fast to start the claims process officially.
Step-by-Step Guide to Filing a Car Shipping Insurance Claim
Once you have correctly recorded the damage, filing the claim is a simple process. Staying organized can help speed up the solution.
Gather your documents
Bring all relevant papers together. This means your original copy of the BOL (from pickup), the last signed BOL with the damage noted, your photo and video proof from before and after, and the shipping receipt or contract.
Contact the carrier or broker.
Tell the auto transport company right away about any damage during vehicle transport. At Preowned Auto Logistics, our customer service team will help you determine the following steps, including providing contact information for the carrier’s insurance agent. Most companies have a set time frame for starting a claim, usually between 7 and 30 days, so don’t wait.
Provide a detailed written report and get estimates
You may need to write a formal claim. Describe in detail what is damaged and refer to your photos and BOL. The insurance company will also want repair estimates. Get two to three quotes from reputable body shops showing how much it costs to fix the damage.
Follow up regularly
The auto transport claims process can take time. Keep track of every communication, including dates, times, and names of people you talk with. Check in often on your claim status and ask how long it might take to process and pay.
Common Mistakes That Delay Insurance Claims
Even with a valid claim, minor errors can lead to delays or outright denial. Avoid these common mistakes:
- Signing the bill of lading without a thorough inspection: This is the most critical mistake. By signing a clean delivery report, you absolve the carrier of any liability. Always inspect before signing.
- Failing to note damage on the BOL: If you see damage but do not document it on the official paperwork, it becomes your word against the driver’s, and the written record will almost always prevail.
- Losing your records: Not having your copy of BOL or deleting your pre-shipment photos significantly weakens your case; keep everything organized and backed up.
- Waiting too long to file: Every insurance policy has a deadline. Delaying your report gives the insurer a reason to question whether or not the damage is valid.
- Accepting a partial settlement too quickly: Do not feel pressured to take a low initial offer; make sure the offer covers the full cost of repairs from a reputable shop. Review any settlement offer carefully before accepting it.
How Preowned Auto Logistics Supports You During a Claim
Claims management for auto transport may seem overwhelming, but rest assured, you are not alone. At Preowned Auto Logistics, our responsibility extends beyond simply delivering your vehicle.
• Proactive measures: We implement preemptive strategies to minimize disputes through thorough vehicle inspections and documentation before and after transport, as well as comprehensive terms and conditions for both customers and carriers.
• Expert assistance: In the unfortunate event of damage, our experienced team will guide you through the process. We’ll ensure that you document the damage properly and provide all necessary forms and information to submit your auto transport claim to the carrier’s insurance.
• Fully vetted carrier network: PAL works with reputable carriers who have comprehensive insurance coverage. We verify their insurance and safety records to ensure a legitimate claim will be honored.
- Reducing your stress: Our goal is to minimize your stress as much as possible by facilitating communication between you and the carrier’s insurance company.
We provide guidance and support to help resolve the issue quickly, reducing your downtime and the worry that could have been a stressful situation.
Preventing Damage on Future Shipments
The best way to deal with a claim is to avoid it. A few simple preventive measures can significantly reduce the risk of damage.
Choose the proper transport method:
- Open carriers: This is the most common and economical method of transport. Millions of cars are shipped this way each year, with only a handful of reported damages. As these carriers are open, they are exposed to the elements, but damage is rare. Statistics show that less than 5% of the vehicles shipped in open carriers sustain any damage, if at all.
- Enclosed carriers: These are high-value vehicles for classic cars or luxury automobiles; this is the only way to go. You should always use an enclosed carrier to protect against road debris, weather conditions, and potential dings.
Prep your vehicle correctly.
Before your vehicle is picked up, secure or remove any loose parts such as custom spoilers or antennas. Your vehicle’s gas tank should be no more than a quarter full when it is transported, so that no excess weight is added.
Work with vetted, experienced carriers.
This is the most critical factor: an experienced company such as Preowned Auto Logistics has a network of professional carriers with proven records of safe, secure deliveries.
Choose the Right Shipping Partner for True Peace of Mind
In the end, the quality of the company you choose determines the safety of your vehicle. A trusted partner like Preowned Auto Logistics not only provides a quote but also professionalism, transparency, and support.
When you choose us, you benefit from:
- Carriers who are fully insured and vetted: We do the research for you, ensuring every carrier meets strict safety and insurance standards.
- Customer support from start to finish. Our team is ready to help in every step, from booking through delivery and beyond.
We strive to deliver a smooth experience by leveraging our technology expertise to ensure your car shipping is simple, safe, and hassle-free.
Conclusion: Ship with Confidence
Vehicle transport damage claims are rare, but being prepared can make all the difference. A careful inspection of your vehicle, thorough documentation on the Bill of Lading, and knowledge about the claims process empower you to manage any situation. When you ship with Preowned Auto Logistics, you’re not just using a transport service; you’re gaining a partner committed to your peace of mind. We stand behind our network of carriers and provide the necessary support to ensure your vehicle is protected every mile of the journey. If you want to ship your car with a team you can trust, get your free quote from Preowned Auto Logistics today!
Frequently Asked Questions (FAQs)
What should I do if my car arrives damaged after shipping?
Record all fresh damages on the Bill of Lading before signing. Capture high-quality images of the damage, then contact the carrier immediately to begin filing an auto transport insurance claim. Report any new issues on the BOL before signing, and take pictures. Notify your shipping company as soon as possible so they can help you start your car shipping insurance claim.
How long do I have to file a car shipping insurance claim?
The time frame is usually between 7 and 30 days, depending on the carrier and the insurance policy. It is essential to report the damage and file a claim immediately to avoid missing this window.
Does my personal auto insurance cover damage to my shipment?
Generally, no. Your personal auto insurance is primary about coverage; it is secondary because it will not cover any vehicle “under the care, custody, or control” of a for-hire carrier. The cargo insurance of that carrier covers any damage while in transit. Always consult your own agent to verify your policy specifics.
What documents are needed for a car shipping insurance claim?
You will need the original Bill of Lading from pickup, the final signed BOL from delivery with the damage noted, photographic/video evidence of the vehicle’s condition before and after transit, and two or three repair estimates from certified auto body shops.
How much insurance coverage do car shipping companies carry?
By federal law, carriers must have liability insurance. Reputable carriers typically carry cargo insurance policies ranging from $250,000 to $1 million or more to cover the value of the vehicles they transport. Preowned Auto Logistics ensures all carriers in our network have sufficient car shipping insurance coverage.
Who pays for the damage if it occurs during transport?
The carrier’s cargo insurance covers the cost of repairs for any damage proven to have occurred during shipping. Once the claim is approved, the insurance company will issue payment for the agreed-upon repair costs.
Can I track the progress of my insurance claim with Preowned Auto Logistics?
While the claim is officially between you and the carrier’s insurance company, Preowned Auto Logistics provides dedicated support. Our team will help you initiate the process, ensure you have all the required documentation, and assist with following up on the status of your claim to facilitate a resolution.
