Car Shipping Insurance: Who Covers Your Car and What to Check
When a car is on a truck, the insurance that can pay for damage to it is the carrier’s cargo policy — not the broker’s bond — plus, in some cases, your own auto policy — ask your insurer whether yours covers a car in transit. FMCSA’s own pages don’t set a cargo minimum for car haulers: its FAQ says “Household goods carriers and freight forwarders of household goods are required to have cargo insurance,” and its chart lists $0 cargo for non-hazardous for-hire property carriers. Separately, federal law makes the carrier that issues the bill of lading liable for “the actual loss or injury to the property,” but that liability may be limited to a value set by the shipper’s declaration or “by written agreement between the carrier and shipper” (49 U.S.C. 14706). So read the liability terms on the bill of lading as well as the insurance certificate. Before pickup, ask for the carrier’s certificate of insurance and read the limit, dates and exclusions.
Who insures your car during shipping
| Party | What FMCSA requires on file | Does it pay for damage to your car? |
|---|---|---|
| Carrier (the truck) | Liability (BIPD): $750,000 for a gross vehicle weight rating (GVWR) of 10,001 lb or more; $300,000 under 10,001 lb. Cargo: $0 | BIPD is “liability for bodily injury or property damage” (49 CFR 387.5). Sherpa Auto Transport, a broker, says “liability insurance does not cover damage to the vehicle that is being transported.” For damage to your car, look to the carrier: its cargo policy, if it has one, and its liability under the bill of lading |
| Broker | $75,000 surety bond or trust fund; $0 liability, $0 cargo | The bond pays “shippers or motor carriers if the broker fails to carry out its contracts” — no mention of damage |
| You | — | Progressive, an auto insurer: if there’s an issue with the transport company’s coverage, “having comprehensive and collision on your personal auto policy may help protect your vehicle against damage in transit”; ask your insurer whether yours covers a car in transit |
FMCSA figures are from its insurance filing chart (updated March 2026). Not every source puts this the same way. Progressive writes that “Auto transport companies may be legally required to carry insurance to cover damage while your vehicle is in transit” and that “Coverage requirements can vary by state.” Sherpa says it requires the carriers it books to carry “a minimum of $100,000 in cargo coverage” — a company rule, not a federal one.
What carrier cargo insurance covers
It depends on the policy. Sherpa describes cargo cover as protection “against physical damage to your vehicle while it is being loaded, transported, or unloaded” and says it “commonly includes collision-related damage, fire damage, certain theft-related losses or damage from load shifting during transport.”
Two things to check, both from Progressive:
- When it starts: “Some transporters only have coverage once your vehicle is on the truck.” Ask whether the policy covers loading and unloading.
- The limit: confirm “their coverage limits are high enough to replace your vehicle.”
Common exclusions
Sherpa, a broker, says: “Most policies exclude pre-existing damage, personal belongings left inside the vehicle, mechanical failures and certain weather-related events and natural calamities.” Progressive, an insurer, says “A car hauler’s insurance policy could also have exclusions that would complicate coverage for your vehicle if it sustained any damage in transit.”
Neither lists every exclusion, so the only reliable list is the one in the carrier’s policy. Ask the carrier for its certificate of insurance and read what it excludes. Progressive’s checklist: “Verify the auto transport company’s proof of insurance, including coverage limits, effective dates, and exclusions.”
Broker bond vs carrier insurance
A broker’s $75,000 bond is about money, not dents. Under 49 CFR 387.307, it ensures “payments to shippers or motor carriers if the broker fails to carry out its contracts, agreements, or arrangements for the supplying of transportation by authorized motor carriers.” FMCSA says the broker rules that took effect January 16, 2026 are intended to ensure “adequate funds are available to satisfy unpaid freight charges.” For damage, the policy that matters belongs to the carrier who hauls the car — get its certificate once the carrier is assigned. To check who the broker and carrier are, see car shipping scams and how to check a broker.
Inspection and the bill of lading
Federal law says an interstate carrier subject to federal jurisdiction “shall issue a receipt or bill of lading for property it receives for transportation” (49 U.S.C. 14706). Sherpa describes the bill of lading in car shipping as “a receipt, shipping contract, and vehicle condition report” and says: “The driver and customer inspect the vehicle at pickup and delivery, documenting any existing or new damage on the Bill of Lading.”
At both ends:
- Walk around the car with the driver before anyone signs.
- Make sure every scratch or dent you see is written on the bill of lading. Sherpa: “Note the damage on the Bill of Lading before signing.”
- Take photos of the car at pickup and delivery. If there’s damage, Sherpa says: “Take clear photos of the damage from multiple angles.”
- Keep copies. Progressive: “Request copies of both inspection reports.”
What to do if your car is damaged
A damage note on the bill of lading is not the same as a claim. Federal claim rules say damage notations on delivery receipts and “inspection reports issued by carriers” do not, “standing alone,” count as a filed claim (49 CFR 370.3). A claim is “a written communication” filed with the carrier “within the time limits specified in the bill of lading or contract of carriage” that identifies the shipment, asserts liability, and asks for “a specified or determinable amount of money.”
What the rules say about timing:
| Step | Rule |
|---|---|
| Deadline the carrier may set | Not “less than 9 months for filing a claim” (49 U.S.C. 14706) |
| Carrier acknowledges | In writing “within 30 days after the date of its receipt” unless paid or declined first (49 CFR 370.5) |
| Carrier answers | “pay, decline, or make a firm compromise settlement offer in writing” within 120 days; if it can’t, it must tell you in writing the status and “the reason for the delay” then and every 60 days after (49 CFR 370.9) |
The federal rules describe a claim filed with the carrier. Progressive, an insurer, points to the carrier’s insurer: “If your vehicle is damaged, destroyed, or stolen during transport, file a claim with the transporter’s insurer.” Sherpa adds: “Notify the carrier and transport broker immediately” and “Request claim instructions from the carrier’s insurance provider.”
Your contract and the carrier’s policy decide the details, so read both before pickup. If a carrier or broker won’t respond, you can file with the FMCSA Complaint Center: “The general public may file complaints against moving companies, moving brokers, or auto transporters,” under “Moving Companies and Brokers.” FMCSA uses complaints, “along with other sources, to make decisions about which companies to investigate.”
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Sources
- FMCSA — Insurance Filing Requirements, filing requirements chart (last updated Mar 26, 2026)
- FMCSA — Who is required to carry cargo insurance? (last updated May 26, 2023)
- 49 CFR § 387.5 — Definitions (public liability), Cornell LII / eCFR
- 49 CFR § 387.307 — Property broker surety bond or trust fund (effective Jan 16, 2026), Cornell LII / eCFR
- 49 U.S.C. § 14706 — Liability of carriers under receipts and bills of lading, Cornell LII
- 49 CFR § 370.3 — Filing of claims, Cornell LII / eCFR
- 49 CFR § 370.5 — Acknowledgment of claims, Cornell LII / eCFR
- 49 CFR § 370.9 — Disposition of claims, Cornell LII / eCFR
- Progressive (auto insurer) — Do You Need Insurance to Ship a Car? (updated May 28, 2026)
- Sherpa Auto Transport (a broker) — Auto Transport Insurance – What Is It and Who Needs It? (July 8, 2026)
- Sherpa Auto Transport — Auto Transport Terms & Conditions (last updated Aug 27, 2024; role: auto transport broker)
- FMCSA Complaint Center (National Consumer Complaint Database), home page — complaint categories (accessed Nov 2, 2026)
- FMCSA Complaint Center — Eligible Complaints (last updated Oct 8, 2026)
Updated November 2, 2026