Question 1

What insurance coverage do carriers provide?

Accepted Answer

All licensed auto transport carriers in the United States are required by federal law to carry a minimum of $750,000 in liability insurance. Additionally, most carriers carry cargo insurance that specifically covers vehicles in their possession during transport. This means your vehicle is insured from the moment it is loaded onto the carrier until it is delivered to you. Your personal auto insurance becomes secondary coverage while the vehicle is on the truck.  The carrier's cargo insurance covers physical damage to your vehicle during transit — dents, scratches, broken glass, and other damage that occurs while the vehicle is being transported. Coverage limits vary by carrier but typically range from $100,000 to $250,000 per vehicle. We verify insurance coverage for every carrier on our marketplace before they can accept loads, so you can be confident that the company handling your vehicle has active, adequate insurance.  It is important to understand that carrier insurance covers damage that occurs during transport — not pre-existing damage or issues unrelated to the shipping process. This is why the pre-pickup inspection and Bill of Lading documentation are so critical. The condition report created at pickup establishes the baseline, and any new damage discovered at delivery can be attributed to the transport and claimed against the carrier's insurance.

Question 2

How do I file a damage claim if my vehicle is damaged?

Accepted Answer

If you discover new damage to your vehicle at delivery, the first and most important step is to document it on the Bill of Lading before you sign. Do not sign a clean Bill of Lading if there is damage — your signature on a clean BOL can be interpreted as confirmation that the vehicle arrived in the same condition it was picked up, which makes filing a claim much more difficult. Note the damage clearly on the BOL, have the driver acknowledge it, and both of you should sign the annotated document.  Next, photograph the damage immediately — multiple angles, close-ups, and wide shots that show the damage in context with the rest of the vehicle. Compare these photos against the photos you took before pickup (which is why we strongly recommend photographing your vehicle before shipping). Then contact us right away. We will guide you through the claims process with the carrier's insurance company. You will typically need to obtain a written repair estimate from a body shop, which you will submit along with your photos and the annotated BOL.  The carrier's insurance company will review the claim, compare the pickup and delivery condition reports, and process payment for the repair. Most legitimate damage claims are resolved within 30-60 days. At American Auto Shipping, we advocate on your behalf throughout the process — we do not disappear once the vehicle is delivered. Damage during transport is rare (it occurs on less than 1% of shipments), but when it does happen, having proper documentation makes the claims process straightforward.

Question 3

What happens during the vehicle inspection at pickup?

Accepted Answer

The vehicle inspection at pickup is one of the most important steps in the entire shipping process. When the carrier driver arrives, they will walk around your vehicle with you and conduct a thorough visual inspection, noting every existing scratch, dent, ding, chip, scuff, and imperfection on a vehicle diagram that is part of the Bill of Lading. The driver uses standard condition codes — S for scratch, D for dent, C for chip, and so on — and marks their location on the diagram.  This inspection serves as the legal baseline for your vehicle's condition. At delivery, the same inspection process is repeated, and any new damage is compared against the pickup documentation. If something was not noted at pickup, it becomes very difficult to prove it happened during transport. For this reason, do not rush the inspection. Walk around the vehicle slowly, check every panel including the roof, inspect the bumpers, wheels, mirrors, and trim. Open the doors and check the edges. Look at the undercarriage if you can.  Before the driver arrives, take your own comprehensive photos of the vehicle — every panel, all four corners, the roof, wheels, interior, and any existing damage in detail. Email these photos to yourself so they have a verifiable timestamp. Your personal photo documentation is a powerful backup to the driver's written inspection. Once you and the driver agree on the condition report, both of you sign the Bill of Lading. Make sure you get your copy. This document is your protection if anything happens during transport.

Question 4

Do I need additional insurance for auto transport?

Accepted Answer

For most shipments, the carrier's included insurance provides sufficient coverage. Every carrier on our marketplace carries federally mandated liability insurance plus cargo insurance that covers your vehicle during transit. For a standard vehicle valued under $50,000, the carrier's existing coverage is typically more than adequate, and purchasing additional insurance is unnecessary.  However, if you are shipping a high-value vehicle — exotic cars, classic cars, custom builds, or vehicles valued over $75,000 — you may want to consider supplemental coverage. Some options include gap insurance through a third-party provider that covers any difference between the carrier's coverage and your vehicle's actual value, or a rider on your existing auto insurance policy that extends coverage during transport. Contact your personal auto insurance provider and ask about transport coverage — some policies automatically cover your vehicle during professional shipping, while others exclude it.  Another layer of protection is choosing enclosed transport for high-value vehicles. Enclosed carriers typically carry higher insurance limits because they specialize in transporting valuable vehicles. They also reduce the risk of damage in the first place by shielding your vehicle from weather, road debris, and general exposure. At American Auto Shipping, we can help you assess your coverage needs based on your vehicle's value and recommend the right combination of transport type and insurance for your specific situation.

Question 5

What is a Bill of Lading and why does it matter?

Accepted Answer

The Bill of Lading (BOL) is the single most important document in the auto transport process. It serves as a contract between you and the carrier, a receipt of your vehicle, and a detailed condition report that documents the state of your vehicle at both pickup and delivery. The BOL is a legal document — the information recorded on it can be used in insurance claims, disputes, and legal proceedings.  At pickup, the carrier driver creates the BOL by inspecting your vehicle and noting all existing damage on a vehicle diagram using standard condition codes. Both you and the driver review the diagram together, agree that it accurately reflects the vehicle's current condition, and sign the document. You receive a copy, and the driver keeps the original. At delivery, the same process is repeated — the driver inspects the vehicle again, and any new damage is documented on the BOL. Your signature at delivery confirms the condition of the vehicle when it was returned to you.  Never sign a clean Bill of Lading at delivery if there is new damage. Your signature is essentially an acknowledgment of the vehicle's condition, and a clean BOL can be used to argue that no damage occurred during transport. If you notice anything new — even something minor — note it on the BOL before signing. Keep your copies of the BOL from both pickup and delivery in a safe place for at least 90 days, which is the typical window for filing a damage claim.

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Insurance & Protection

5 Articles

What insurance coverage do carriers provide?

How do I file a damage claim if my vehicle is damaged?

What happens during the vehicle inspection at pickup?

Do I need additional insurance for auto transport?

What is a Bill of Lading and why does it matter?

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