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What kind of insurance do I need as an auto hauler?

If you haul cars for a living, you know that you face a lot of risks. You (or your driver) could get into an accident and injure other drivers. The cars you’re hauling could get damaged. The car carrier itself could be wrecked. You could destroy private property in an accident. So, yes, auto hauling isn’t for the faint of heart. However, that’s why they invented auto hauler insurance. There are several types of insurance you’ll need to haul cars, and we’ll explain each of these possible coverages.

Who needs auto hauler insurance?

Many different businesses need auto hauler insurance. You might be…

  • A car dealership that has a car carrier to transport vehicles
  • A business with contracts with multiple car dealerships
  • An auto repair shop
  • A business that transports cars for customers

What coverages do I need to haul cars?

Auto liability insurance:

Auto liability insurance will help cover the expenses you’re legally obligated to pay if you’re involved in an accident or damage someone’s property.

The two main components of auto liability insurance are bodily injury liability and property damage liability.

  • Bodily injury liability can help cover the costs of the other driver’s medical bills and lost wages if you injure someone in a car accident. It can even help you cover legal expenses if they choose to sue.
  • Property damage liability can help cover the costs of repairing or replacing the other driver’s vehicle if you’re in an accident. It can also cover you if you damage property other than a vehicle, such as fences and mailboxes.

Physical damage:

Physical damage insurance will help you get your auto hauler back on the road ASAP if it’s damaged and needs to be repaired or replaced.

  • Collision coverage can cover the costs of repairing or replacing your truck if you’re in an accident or if you collide with something else, like a telephone pole.
  • Comprehensive coverage can protect you if your truck is damaged by something other than an accident, such as fire, vandals, or falling objects (like trees.) It can also cover theft.

Cargo insurance:

Cargo insurance protects the load you’re hauling, which for you means cars. It covers losses such as fire, theft, and collision. You’re responsible for your load and your client is depending on you.

Pro tip: Make sure that you have the right cargo insurance to cover the vehicles you’re hauling. It’s important that you have enough coverage to truly protect your business.

If you have contracts, they will probably specify an amount or limit of cargo coverage that required to have. It’s very important that you tell your agent about any contractual requirements before binding (finalizing) coverage.

Uninsured/Underinsured motorist:

What if another driver hits your auto hauler and causes an accident? They’re found to be at-fault, so their insurance should pay for your medical bills.

Only, there’s one problem:

The driver that hit you doesn’t have insurance.

That’s what uninsured motorist coverage (UM) is for. It will protect you if a driver who doesn’t have insurance causes an accident. There’s a second coverage, underinsured motorist coverage (UIM), that will protect you if the driver that hit you doesn’t have enough insurance to cover the cost of the accident.

So, when you’re getting auto hauler insurance, you may want to consider adding UM/UIM insurance.

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So, that’s the deal with what coverages you need to haul cars. Now, keep in mind that the above are only some of the most common coverages we see with car carriers. Your business is unique, so you need a unique insurance plan that suits the specific risks you face. You might need additional coverages to complete your auto hauler insurance plan and close any gaps in your plan.

And we would be happy to help you with creating that insurance plan. Our transportation insurance experts are pros at making insurance easy, and since we specialize in trucking insurance, we understand the risks you face and the coverages you need. To get truck insurance quotes, just fill out our online form or give us a call today.