Your car should be insured when shipping it, because car shipping companies are required to have insurance coverage for their trucks and cargo in order to get and maintain a license to transport vehicles. This license is issued by the Federal Motor Carrier Safety Administration. However, just as there are some uninsured motorists, there can also be uninsured car shipping companies.
As your car is probably one of your most valuable assets, it is worth a little extra time and effort to ensure your car shipping company’s insurance is current. To do this, get a copy of the company’s current insurance coverage, not just a verbal assurance that they are insured.
Review the policy to make sure it is still in force. Then check whether their insurance is primary or secondary to your auto insurance. What is the deductible, if any? While many insurance policies include a deductible, remember that the deductible will need to come out of the car shipping company’s pocket. So, the higher the deductible, the riskier it is for you.
You can also check to see if your car insurance policy provides coverage while your car is being shipped. Some insurers include car shipping coverage as part of their car insurance policies.
Finally, your personal belongings are not covered if damaged or stolen. So, it is best to not include any in your car. See the post about including personal belongings when shipping your car for more details.