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Car hauler insurance is a distinct form of commercial auto insurance specifically tailored to meet the needs of businesses or individuals engaged in the transportation of vehicles.
Whether you operate a car hauler trailer, auto transport company, or work as an independent car hauler, having the right insurance coverage is crucial. This article will provide you with a comprehensive overview of car hauler insurance, including key definitions, coverage types and costs, as well as how to find the best insurance options.
What it is: Car hauler insurance, also called car carrier trailer insurance or auto hauler insurance, provides coverage for vehicles being transported by car haulers, trailers, or auto transport companies (a car hauler is a vehicle used to transport other vehicles from one location to another, either utilizing an open or enclosed trailer. Car haulers can be single level or multiple levels, can haul from 1 car to 6 cars, and they are typically equipped with ramps and/or lift gates for ease of loading and unloading cars). Car hauler insurance safeguards against potential liabilities and risks associated with transporting single or multiple vehicles simultaneously.
How it Works: Car hauler insurance covers damage to the transported vehicles (including cars, trucks, motorcycles, vans, and other motor vehicles being transported), liability for injuries or property damage caused by accidents, theft, vandalism, natural disasters, and other potential risks during car transit that are specific to the car hauling industry.
Additionally, auto hauler insurance may also offer coverage for loading and unloading activities, as well as damage caused by faulty equipment or negligence. It is essential to review the specific policy details to understand the extent of coverage provided by the insurance carrier.
Common risks of hauling cars include:
Below is a supporting table detailing the benefits and key coverage options of car hauler insurance by use case. It highlights who needs each type of coverage, why it’s important, and tips to help manage insurance costs effectively.
| Industry/Use Case | Why Car Hauler Insurance is Helpful | Key Coverage Options | Cost Factors | Tips for Reducing Costs |
|---|---|---|---|---|
| Transport Companies for Automobiles | Protects against damage, theft, or accidents during vehicle transport, reducing financial risk. | Cargo Insurance, Liability Insurance, Physical Damage Coverage | Vehicle types, mileage, route risks, driver experience | Implement driver training, use GPS tracking, choose safer routes. |
| Car Manufacturers and Dealerships with Carriers | Covers liabilities for transporting new vehicles, protecting inventory and reducing potential claims from buyers. | Liability Coverage, Garagekeepers Insurance, On-Hook Towing Insurance | Value of vehicles, frequency of transport, driver safety records | Maintain clean driving records, bundle insurance policies. |
| Auto Repair Facilities with Car Haulers | Ensures coverage for damage during transport, protecting the facility from costly repairs or replacements. | Physical Damage Coverage, Garage Liability Insurance, Cargo Insurance | Condition of vehicles, transport frequency, distance covered | Regular vehicle maintenance, hire experienced drivers. |
| Companies Partnering with Vehicle Dealerships | Offers coverage for liabilities when transporting vehicles, essential when partnering with dealerships. | Liability Insurance, Cargo Coverage, Physical Damage Insurance | Number of vehicles transported, driver experience, route risks | Negotiate with insurance providers, maintain vehicle safety. |
| Towing Companies Using Trailers | Provides protection for towing operations, especially when using trailers that could damage vehicles. | On-Hook Towing Insurance, Liability Insurance, Trailer Interchange | Trailer types, frequency of use, vehicle value and type | Bundle policies, maintain trailers, review coverage regularly. |
| Auto Repair Shops Delivering Vehicles | Covers damage during vehicle delivery, reducing the shop's risk of paying out-of-pocket for any mishaps. | Garage Liability Insurance, On-Hook Towing Insurance, Physical Damage Coverage | Vehicle value, distance, driver records, delivery frequency | Ensure proper loading techniques, keep driver records clean. |
| Individuals Transporting Vehicles | Protects personal vehicles during transport, covering damages from accidents, theft, or weather-related incidents. | Liability Insurance, Physical Damage Coverage, Cargo Insurance | Vehicle type, distance, driving experience, route risks | Choose reputable transport companies, review coverage options. |
Here is a breakdown of the common types of car hauler insurance, including what each covers, who needs it, and factors affecting costs. Use this guide to understand the specific coverage options that best suit your business needs.
| Type of Insurance | Description | Who Needs It Most | Cost Factors | Tips for Selection |
|---|---|---|---|---|
| Primary Liability Coverage | Protects your business against bodily injury and property damage liabilities from accidents during vehicle transportation. Covers damages to others involved. | Transport companies, dealerships, towing services | Vehicle type, driver records, location | Ensure minimum coverage meets state and federal regulations. |
| Physical Damage Coverage | Covers damage to your transported vehicles and the power unit (pickup or semi) from collisions, theft, vandalism, or other covered perils. | Auto haulers, towing companies | Vehicle value, deductibles, driver history | Choose a coverage limit that matches the value of your equipment. |
| Cargo Insurance | Protects against damage or loss of the vehicles being transported. | Auto transporters, dealerships | Cargo type, frequency of transport | Review policy exclusions for specific cargo types, like luxury vehicles. |
| General Liability Insurance | Extends beyond road accidents, covering third-party bodily injury or property damage during loading and unloading activities. | All car haulers, repair facilities | Business size, coverage limits | Opt for higher limits if loading/unloading is frequent. |
| Trailer Insurance | Covers damage or loss to the trailer itself. | Transport companies, towing services | Trailer type, use frequency, route risks | Ensure your trailer's value is accurately reflected in the policy. |
| Loading and Unloading Insurance | Protects against damage while cars are being loaded and unloaded. | Dealerships, auto haulers | Loading frequency, vehicle type | Include coverage that accounts for all possible loading environments. |
| Garagekeepers Liability | Protects stored vehicles from vandalism, theft, fire, or severe weather. | Auto repair shops, towing companies | Vehicle value, security measures, location | Enhance security to potentially lower premium costs. |
| On Hook Insurance | Covers damage to vehicles being towed. | Towing companies | Vehicle value, towing frequency | Verify that coverage extends to all towed vehicles in your operations. |
| Diminished Value Insurance | Protects dealerships against losses incurred from diminished value after damage. | Dealerships, rental companies | Vehicle type, past claims | Ideal for dealerships frequently dealing with high-value inventory. |
| Unattended Insurance | Covers losses incurred while vehicles are left unattended. | Repair shops, transporters | Time vehicles are left unattended, location | Review coverage scope for unattended situations to avoid gaps. |
| Auto Hauler Over Height Loads | Protects against damage or loss while passing under low structures or bridges. | Car haulers, specialized transport services | Load height, route planning | For small businesses, minimum insurance starts at $100,000. FMCSA requires $1 million minimum coverage, with higher levels based on circumstances. |
Car hauler insurance costs depend on factors like coverage type, vehicle count, and driving records. The table below highlights key cost drivers, their impact on premiums, and tips to help reduce expenses.
| Cost Factor | Description | Impact on Premiums | Tips for Managing Costs |
|---|---|---|---|
| Type and Level of Coverage | Higher levels of coverage lead to increased premium costs. Different coverage types like primary liability, cargo, or physical damage. | Higher coverage levels increase premiums. | Assess your coverage needs carefully to avoid over-insuring; increase deductibles if manageable. |
| Number of Vehicles Insured | More vehicles being transported or insured can significantly impact overall insurance costs. | Premiums increase with more vehicles insured. | Bundle policies under one provider to receive potential discounts; review fleet size regularly. |
| Driving Record | A clean driving record can lower rates, while a history of accidents or violations increases premiums. | Poor records result in higher premiums. | Implement regular driver safety training and protocols to maintain clean records and lower costs. |
| Experience and Qualifications | Years of operation and safety certifications of the car hauler can influence insurance rates. | More experience and certifications can lower premiums. | Highlight safety credentials when obtaining quotes; invest in driver certifications. |
| Location of Operations | Geographic factors like crime rates, accident statistics, and operational locations can affect rates. | High-risk areas lead to higher premiums. | Operate in lower-risk areas when possible; enhance security measures like GPS tracking and secure lots. |
| Vehicle and Driver Factors | The model of the hauler, age of drivers, and specific vehicle types can also affect insurance costs. | Newer, safer vehicles and experienced drivers lower costs. | Regularly update your fleet with newer, safer vehicles and prioritize hiring qualified, experienced drivers. |
| Deductibles and Add-Ons | Selecting higher deductibles lowers premiums, while adding features like towing assistance or rental reimbursement increases costs. | Higher deductibles reduce premiums, while add-ons increase them | Increase deductibles where feasible; avoid unnecessary add-ons unless essential for operations. |
| Types of Cars Transported | High-value, exotic, or specialty vehicles typically lead to higher insurance costs. | Higher value cars result in higher premiums. | Specify coverage for the most commonly transported vehicle types; avoid excessive coverage on specialty vehicles. |
| Claims History | Frequent claims or significant past claims can drive up insurance costs. | Higher claims history leads to increased rates. | Minimize claims by implementing strict safety protocols and regular maintenance checks. |
| Typical Premium Costs | Average monthly premiums for auto haulers range from $700 to $1,500 per vehicle, typically running $900-$950, equating to $10,800-$11,400 annually. | Reflects standard cost ranges across different providers. | Obtain multiple quotes to compare prices; pay annually to potentially lower overall costs; research discounts. |
Here are significant ways to determine if you have good car hauler insurance:
By working with knowledgeable insurance professionals and following best practices, car haulers can obtain the right insurance coverage while minimizing costs. Ensure your operations are fully protected with the right insurance coverage, including comprehensive car hauler insurance. Contact us today!
Common exclusions in car hauler insurance policies may include wear and tear, mechanical breakdowns, intentional damage, and certain types of cargo. Coverage may be limited or excluded for drivers without proper licenses or those who do not comply with safety regulations and maintenance standards.
Car haulers can minimize their insurance costs by maintaining a clean driving record, investing in safety and security features for their haulers, implementing regular maintenance schedules, choosing higher deductibles, and bundling insurance policies. Completing safety training programs and adhering to industry best practices can help reduce the risk of claims and potentially lower premiums.
Car hauler insurance is mandatory for all operators transporting vehicles commercially. Federal and state regulations require specific minimum levels of liability coverage, and additional insurance may be needed depending on the nature of the business and the value of the cargo being transported.
Car hauler insurance policies should be reviewed annually or whenever there are significant changes in the business, such as acquiring new haulers, changes in routes, or variations in the types of vehicles being transported. Regular reviews help ensure the coverage remains adequate and cost-effective.
Car hauler insurance can cover multiple drivers, but it is essential to list all drivers on the policy. Insurance providers will consider the driving records of all listed drivers when determining the premium. Ensuring all drivers are properly trained and have clean driving records can help keep costs down.
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