Why Your Business Needs Car Hauling Insurance


Welcome back to the Forerunner Insurance Group blog! In our recent post, we began looking at car hauling insurance and the types of businesses that should protect their auto transport vehicles with an insurance policy that offers specific coverage for their line of work. Some of these companies include large trucking fleets, independent car haulers, tow companies, and repossession companies. The main reason car carriers will want this specific coverage is because of the particular risks these transport vehicles face on a daily basis and because the cargo being transported is highly valuable. Additionally, there are some mandatory coverages which are required for car hauling insurance, including bodily injury and property damage insurance. That being said, let’s take a look at some of the risks involved in hauling vehicles while also exploring some of the key benefits of protected carrier vehicles with car hauling insurance. Please read below to learn more.

Low Clearance Damages

Larger auto transporters often carry high cargo loads so that they can fit numerous vehicles onto their trucks. While this is a safe, efficient, and economical way to transport multiple cars at once, it also poses the risk of striking a load while passing underneath overpasses. While the National Highway Traffic Safety Administration (NHTSA) works with local communities to create safe overpasses over highways that adhere to specific height standards, and which also feature posted heights on bright yellow signs for truck drivers to see, there are many instances where cargo heights surpass that of an overpass. Striking an overpass can cause minor to serious damage to both the vehicles being transported as well as the car carrier truck. Car hauling insurance will cover the truck and the vehicles by covering costs to repair the associated damages.  

Damage to Vehicles

Transporting vehicles is a cause for concern in and of itself. When moving vehicles, there is a high possibility that new cars may be damaged in some way during transport, which will affect the resale value of a “new” car. Once a new car has been damaged, it must be repaired, which impacts the amount it can be sold for once it has been fixed because it can no longer be considered a brand new vehicle. Along with the possibility of striking an overpass with a cargo load, there are other damages that may occur during uploading and offloading vehicles, damages caused by weather such as hail, or minor dings and scrapes that can occur from road debris or other items on the carrier truck. If the roof or hood of a brand new car is damaged during transport, the repairs can cost anywhere between a few hundred dollars to a couple thousand. The car’s value must then be reduced because it has suffered damage. Depending on the carrier and type of insurance coverage, the insurance may only cover the repairs which means the trucking company has to cover the rest. Having a solid car hauling policy covers these kinds of expenses as well as the actual loss and not just the repairs, so that a large trucking company or small, independent hauling business is not left to pay the difference for repairs or other expenses.   

Vehicle Theft

Unfortunately, theft is another serious and common risk associated with moving vehicles. Brand new cars are incredibly appealing to thieves who can salvage brand new car parts to sell or who can earn a major payload by reselling a stolen vehicle. Vehicles being transported cannot always be attended to, especially when they are being moved over great distances over the course of many days. Most car hauling insurance plans have specific inclusions and exclusions when it comes to theft, so talking with a Forerunner Insurance Group agent is the best way to find the right policy that will cover damages or losses suffered as a result of theft.

Damages from Auto Accidents

According to the Association for Safe International Road Travel (ASIRT), road crashes in the United State cost about $230.6 billion each year. With more than three million drivers operating transport vehicles with Interstate Commercial Driver’s Licenses (CDL), large trucks hauling cargo are involved in upwards of 400,000 car crashes every year. While car hauling trucks may only suffer minor damages in many cases, these kinds of vehicles can be expensive to repair, and often require repairs by specialty auto repair shops. Therefore, it is crucial to work with your Forerunner Insurance Group agent to find the best insurance carrier and policy that will cover damages to your auto transport vehicle, as well as associated repairs, medical expenses, and other costs that may incur.

Call Your Top Rated Local® Commercial Insurance Agency

These are just some of the risks associated with hauling vehicles across short and long distances, whether traveling on the highway or on smaller streets within cities. Having a sound car hauling insurance policy is the best way auto transport companies can protect their business, assets, employees, and cargo. If you would like to receive an insurance quote or have questions about your existing policy, please contact Forerunner Insurance Group to speak with one of our knowledgeable and friendly agents. As Florida’s Top Rated Local® commercial insurance agency, we all specialize in commercial insurance coverage for large trucks and semi trucks, fleet vehicles, commercial vehicle insurance, insurance for self storage units, commercial property insurance, and wind insurance. Give our team a call today and we’ll find the best insurance coverage for your business.