Carrier Cargo Insurance
FMCSA requires all carriers to maintain cargo insurance. Most carriers carry between $100,000 and $250,000 in coverage per vehicle. This insurance covers damage to your vehicle while in the carrier's possession — during loading, transit, and unloading. It does not cover personal items inside the vehicle, pre-existing damage, or mechanical issues unrelated to transport.
What's Typically NOT Covered
Personal belongings left in the vehicle, damage from acts of God (hail, falling trees) unless the carrier was negligent in their response, pre-existing damage that wasn't documented on the pickup BOL, damage to non-factory modifications that weren't disclosed at booking, and mechanical failures not caused by the transport process. Read the carrier's insurance policy — or have your broker confirm the exclusions.
Broker Contingent Cargo Insurance
Reputable brokers carry contingent cargo insurance as a secondary layer. This coverage activates if the carrier's primary insurance fails to pay a valid claim — for example, if the carrier's policy lapsed between dispatch and the date of the incident. Contingent coverage is not a substitute for carrier insurance; it's a backup. Confirm your broker carries it.
When Standard Coverage Isn't Enough
If your vehicle is worth more than the carrier's coverage limit, you have a gap. Options: request a carrier with higher coverage limits (they exist for high-value loads), purchase supplemental transit insurance from a specialty provider, or check whether your personal auto insurance covers vehicles in third-party carrier custody. Many personal policies exclude this — confirm with your insurer before assuming.
How to Verify Insurance Before Shipping
Ask your broker for the carrier's insurance certificate before pickup. The certificate should show: the carrier's name matching the truck and trailer, active policy dates that cover your transport window, cargo coverage limits, and the insurance company's contact information. If your broker can't or won't provide this, that's a red flag.