Cargo coverage needs checking before you hand over the keys. A carrier’s registration, a broker’s bond and your own auto policy each serve a different purpose.
For shipments I arrange, the assigned carrier’s cargo coverage is checked before pickup and included in the agreed transport price. That does not mean every kind of damage is covered, or that you can cancel your own auto insurance. Ask for the carrier’s policy details and ask your own insurer how your policy applies during transport.
Can you transport a car without insurance?
You do not buy a separate shipping policy for a shipment I arrange: the assigned carrier’s cargo coverage is checked before pickup and is part of the agreed price. Whether your own policy must stay active while the car is on the truck depends on that policy and your state, so ask your insurer before cancelling or pausing it. The sections below show what to check so you know what the carrier’s coverage does and does not include.
How to transport a car without your own insurance
On a shipment arranged through Leader Auto Ship, cargo insurance is part of the price, from the carrier that hauls your car. You do not buy a separate transport policy. Once your final price is confirmed, you receive the assigned driver’s name and phone number, the carrier’s certificate of insurance, and the carrier’s MC and DOT numbers, so you can check the coverage and the company yourself before pickup. Your own policy is still a matter for you and your insurer, especially for any time you drive the car to or from the truck.
How much insurance does a car carrier have?
It is the question customers ask me most about insurance. On the shipments I arrange, an open carrier usually has $100,000 of cargo insurance, and bigger carrier companies $250,000. Enclosed carriers start at $250,000 and go to $500,000, $750,000 and up to $1,000,000.
The part most people miss: that limit usually covers the whole trailer, not each car. An open trailer often carries 7 cars, so $100,000 is shared by all 7. An enclosed trailer usually carries 2 cars, sometimes 6. When you compare carriers, ask for the limit per trailer and how many cars will be on it, then think about what your own car is worth against that share.
Do I need my own insurance while my car is on the truck?
For the transport itself, no. If the car is damaged while the carrier has it, the carrier pays, through its cargo insurance or out of its own pocket, not through your policy. That is why the coverage worth checking is the carrier’s, and I get it for every shipment I arrange. Cancelling or pausing your own policy is a separate decision for you and your insurer, so the section on keeping your own insurance below still applies.
What happens if the driver damages my car?
On the shipments I have handled, a car was damaged once: a bumper. The driver admitted it, took the car to a body shop himself, paid for the repair out of his own pocket and brought it back to the customer fixed. That is common with small damage. Carriers would rather pay for a repair themselves than file a claim, because a claim takes time and raises what they pay for their insurance every month. It still only works when the damage is clearly new, which is why the pickup and delivery inspection below matters.
Registration is not proof of cargo coverage
FMCSA registration helps you establish who is arranging the shipment and who is hauling it. It does not establish every term of the carrier’s cargo policy. FMCSA’s insurance requirements distinguish public liability filings from cargo insurance. For ordinary non-hazardous property carriers, the federal chart does not require a cargo insurance filing. You therefore need a separate check of the actual cargo coverage.
A property broker’s $75,000 bond or trust is also different from insurance covering damage to your vehicle. Do not treat the broker’s registration number or bond as your car’s insurance policy.
The carrier shows $0 cargo insurance online. Are you covered?
Not necessarily uncovered. The federal record shows the insurance a carrier has filed with FMCSA, and for an ordinary car carrier a cargo filing is not required, so the record can read $0 cargo even when the carrier holds a cargo policy. The record cannot tell you either way. Ask for the carrier’s current certificate of insurance, check that the company name matches the truck, and call the insurance agent listed on the certificate to confirm the policy is active and what its limit is per vehicle.
What are the auto transport insurance requirements?
The federal minimums are in FMCSA’s insurance filing requirements chart, which I checked on October 10, 2026. For a for-hire carrier of ordinary property, the required filing is bodily injury and property damage liability: $750,000 for a truck of 10,001 pounds gross vehicle weight rating or more, and $300,000 below that. The same chart lists $0 as the federal cargo insurance requirement for those carriers. In that chart a cargo minimum appears only for household goods movers, at $5,000. A broker files a $75,000 surety bond or trust fund, with no cargo requirement.
So the federal filing tells you a carrier is covered for injuries and damage it causes on the road, not that your car is covered while it rides on the trailer. That cargo coverage comes from the carrier’s own policy, which is why the checks below ask for a current cargo certificate and its limit per vehicle.
What to ask for once a carrier is assigned
- The hauling company’s legal name, MC or USDOT number, and driver contact details. Check that the company arriving matches the company booked.
- Active interstate operating authority through FMCSA’s Licensing and Insurance lookup; use SAFER to cross-check the company’s identity.
- A current cargo certificate of insurance. Confirm it with the issuing insurance agent or insurer, using independently verified contact details.
- The coverage limit and whether it applies per vehicle or to the whole load. A large total limit can be shared across several cars.
- Deductibles, who is responsible for them, exclusions and how to report a claim. Ask specifically about loading, unloading, theft, weather and road debris.
- For a valuable or classic car, whether its value and any special features are covered under this particular policy.
A certificate is a useful starting point; it does not rewrite the policy or guarantee a claim. FMCSA explains where to check operating authority. Ask me for the carrier details before pickup so there is time to resolve questions.
What can be excluded?
Coverage depends on the carrier’s policy and the circumstances. Pre-existing damage, ordinary mechanical failure, certain weather events and personal items can be excluded. Do not assume that luggage in the trunk is insured just because the car is being transported.
Enclosed transport reduces exposure to road debris and weather while the car is inside the trailer. It does not automatically provide a particular insurance limit, eliminate every risk or guarantee that rain cannot reach the vehicle during loading. For a classic with parts you cannot replace, prevention matters even when suitable insurance is available.
Should I keep my own insurance?
Speak to your own insurer before changing or cancelling coverage. Whether your policy covers a shipping loss, and how it interacts with the carrier’s policy, depends on its terms. You also need any required coverage when you drive to pickup or leave the delivery location. Do not assume your personal policy is always secondary or that the carrier will pay every loss.
Document the car at both ends
- Clean the exterior enough to see marks, and take clear dated photos of every panel, wheels and glass before pickup.
- Walk around with the driver. Record existing damage on the pickup Bill of Lading and keep a copy.
- At delivery, compare the car with your photos and pickup report before signing the condition report.
- Record any new damage on the delivery report, take photos and request the driver’s acknowledgement. Keep both reports and your booking documents.
- Notify the carrier and me promptly, then follow the carrier or insurer’s claim instructions and deadlines. Keep written correspondence and requested repair estimates.
A rushed inspection can make a claim harder to establish. A signature alone does not tell the whole story: claim decisions depend on evidence, policy terms and applicable requirements. If you discover damage after the driver leaves, report it promptly rather than assuming you have no options.
What I want a first-time shipper to know
After more than four years and about 800 shipments handled personally, my advice is to check the actual carrier, the actual coverage and the car’s actual condition. A promise that “everything is insured” is less useful than those three checks. Read the pickup preparation checklist and the broker verification guide before booking.
Written by Brian Smith, Auto Transport Manager at Leader Auto Ship LLC — FMCSA licensed property broker, MC #1638331, DOT #4232283. Brian has more than four years of experience and has personally handled about 800 shipments. Verify the licence yourself.