(888) 900 0205Car Carrier Insurance
Car carrier insurance is the package of commercial auto and cargo coverage an auto hauler needs to book loads, keep operating authority active, and pay for a customer's vehicle when something goes wrong between pickup and delivery. Nine-car stingers, three-car wedges, hotshot pickups with a gooseneck, and enclosed haulers moving exotics all sit in this class.
Many of the claims we see in this trade are not crashes. They are scratched hoods, a load that shifted, a car stolen off a trailer overnight, and a dealer arguing about diminished value. The cargo form decides those, so this page spends real time on it.
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Car Carrier Insurance Coverage For Auto Haulers
For-hire haulers are usually written on the ISO Motor Carrier Coverage Form (CA 00 20) or a carrier's own version, with a separate motor truck cargo policy for the vehicles you transport.
Key protections included:
- Primary auto liability: Injuries and property damage your truck causes to others, plus defense. Written as a combined single limit for most haulers.
- Motor truck cargo: Physical loss to the vehicles you are hauling, typically from collision, fire, overturn, and theft, subject to the form's conditions.
- Physical damage: Collision and comprehensive on the tractor and the car carrier trailer, each usually scheduled with its own stated value and deductible.
- Trailer interchange: Damage to a trailer you do not own while it is in your possession under a written interchange agreement.
- Uninsured and underinsured motorist: Responds when the at-fault driver has little or no coverage. Some states let you reject or reduce it in writing.
- Medical payments: Medical bills for your driver and passengers regardless of fault, where offered.
- Non-trucking liability: For owner-operators leased to a motor carrier, liability applies when the truck is used off-dispatch. Often written on the CA 23 09 endorsement.
Liability limits apply per accident, no matter how many vehicles on your trailer or how many claimants are involved. Cargo limits are usually written per load, sometimes with a lower sublimit per vehicle.
You May Need Car Carrier Insurance If You Do The Following Work
Any operation that moves other people's vehicles for a fee, or moves its own inventory over the road, belongs here:
- Nine and ten-car stinger fleets running dealer and port lanes
- Three and four-car wedge trailers behind a medium-duty truck
- Hotshot operators pulling a gooseneck or dovetail behind a pickup
- Enclosed haulers moving exotics, collector cars, and show vehicles
- Auction and dealer trade runs, including driveaway crews delivering on their own wheels
- Dealerships and auction houses hauling their own inventory as private carriage
- Repossession and salvage haulers, which often overlap with tow truck insurance
How The Cargo Form Decides A Car Hauler Claim
Two cargo policies with the same $250,000 limit can pay very differently. These are the clauses to read before you bind:
- Per-load vs. per-vehicle: A per-load limit split across nine units may not cover a single high-value car. Ask for a per-vehicle sublimit that matches what you actually haul.
- Loading and unloading: Some forms exclude damage from "shifting of load, poor packing or rough handling." Ramps and winches are where cars get hurt, so this clause matters.
- Theft and unattended vehicles: Theft may need to be scheduled specifically, and many forms limit coverage once a load has sat at a terminal or lot for a specified period (72 hours on one common form).
- Marring and scratching: Often excluded unless caused by a named peril such as collision or fire, which leaves most cosmetic disputes on you.
- Diminished value: The gap between a repaired vehicle's value and its undamaged value. Dealers often bill it; many base forms do not pay it without an extension.
- Over-height and overhang: Damage from clipping a bridge or awning with a top-deck vehicle may be excluded or subject to a sublimit.
- Earned freight and debris removal: Optional extensions that pay your lost haul charges and roadway cleanup after a covered loss.
Worth checking at renewal: your bill of lading (BOL) condition report is the evidence for every cosmetic claim. Adjusters compare pickup and delivery photos before reviewing policy language, so report the loss with both sets attached.
What's Not Covered Under Car Carrier Insurance
The auto and cargo policies are built for the road. Several routine car hauler losses fall outside both.
- Your drivers' injuries: Handled by workers' compensation, or an occupational accident policy for some owner-operators.
- Vehicles stored at your yard: Cars held long-term at a terminal or lot usually require garagekeepers coverage, not cargo coverage.
- Straps, skids, ramps, and shop tools: Equipment not permanently attached to the truck is typically excluded from physical damage. Inland marine or tools and equipment coverage fills this.
- Personal items inside customer cars: Cargo forms generally do not cover belongings left in a vehicle.
- Mechanical failure of hauled vehicles: A car that will not start at delivery is not a covered loss unless a named peril caused it.
- Injuries and damage away from the truck: A customer injured at your lot or a delivery mistake usually requires general liability coverage.
- Fines, penalties, and pollution: DOT penalties are not insurable, and fuel spills from hauled vehicles are typically excluded, except for narrow exceptions.
Did you know? A vehicle's owner does not have to use their own auto policy first when you damage their car. Their carrier may pay and then subrogate against your cargo policy, so the claim still lands on your loss runs.
Who May Require Proof Of Car Carrier Insurance
In this trade the certificate of insurance is a load requirement, not paperwork. Common requesters:
- FMCSA, which will not activate for-hire interstate authority until your insurer files proof of liability (BMC-91 or BMC-91X)
- Brokers and load boards, which commonly ask for $1,000,000 in liability and $100,000 to $250,000 or more in cargo before they release a load
- Dealer groups and auctions, which may add their own cargo minimums and additional insured wording
- Lenders and lessors on the tractor and trailer, who want to be listed as loss payee
- State DOT or utility commissions for some intrastate for-hire operations
- Shippers of high-value vehicles, who may ask to see the cargo declarations page itself
Quick question: Does FMCSA require cargo insurance for car haulers? Generally not. The federal cargo filing requirement was dropped for most carriers in 2011 and now applies to household goods movers, so cargo limits are set by your brokers and customers, not the government.
What Underwriters Ask Car Haulers
Trucking underwriters price the submission, not the sales pitch. Here's what to have ready:
- USDOT and MC numbers, years of active authority, and your current safety rating and CSA scores
- A unit schedule with year, make, VIN, GVWR, number of vehicle positions, and stated values for tractors and trailers
- Driver list with CDL numbers, dates of birth, hire dates, and how often you pull MVRs
- Radius, typical lanes, and the split between dealer, auction, port, and private customer work
- The vehicle values you haul most, and the highest single value you accept
- Three to five years of currently valued loss runs on auto and cargo, plus mileage or revenue figures if the policy is audited
- Your BOL inspection process, photo practice, and whether trucks are parked in secured yards overnight
Our guide to limits, endorsements, and deductibles explains how each affects the premium.
What Other Coverage Do Car Haulers Need
The auto and cargo policies are the core. Most haulers also carry:
- General liability: Premises and operations claims that do not involve driving, often required by dealer and auction contracts.
- Excess liability: Limits above the primary auto policy when a broker or shipper contract asks for more. Our umbrella vs. excess guide covers the difference.
- Workers' compensation: Required in most states once you have employees on payroll, drivers included.
- Garagekeepers: Customer vehicles held at your terminal or lot outside the transit window.
- Inland marine: Straps, wheel nets, skids, and portable equipment that ride with the truck.
Running mixed equipment? See truck tractor insurance, flatbed truck insurance, or our fleet insurance page for five or more power units.
Endorsements And Filings Car Haulers Commonly Need For Compliance
Brokers and FMCSA name the exact forms they expect. These five come up on most accounts:
- MCS-90 endorsement: Attached to the liability policy for for-hire interstate carriers. It guarantees the public will be paid up to the federal minimum, then lets the insurer recover from you if the loss was not otherwise covered.
- BMC-91X filing: The insurer's electronic proof of liability to FMCSA. Authority stays inactive until it posts, and a cancellation notice goes to FMCSA before the policy ends.
- Designated insured (CA 20 48): Names a broker, dealer group, or shipper as an insured for liability arising from your covered autos.
- Primary and noncontributory (CA 04 49): Your policy pays first and does not seek contribution from the requesting party's insurance.
- Waiver of subrogation (CA 04 44 or CA 04 43): Your carrier gives up recovery rights against the named party after a covered loss.
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FAQs For Car Carrier Insurance
How much liability insurance does a car hauler need?
Car haulers running for hire in interstate commerce with vehicles over 10,001 pounds GVWR generally need at least $750,000 in liability under 49 CFR Part 387. Most brokers and shippers require $1,000,000.
Does FMCSA require cargo insurance for car carriers?
FMCSA generally does not require cargo insurance for car carriers. The federal cargo filing ended for most carriers in 2011 and remains only for household goods movers, so brokers and customers set cargo limits.
How much cargo coverage do car haulers usually carry?
Car haulers commonly carry $100,000 to $250,000 in cargo coverage per load, and more for enclosed or exotic work. The right number depends on the highest total vehicle value you put on the trailer.
What is the MCS-90 endorsement?
The MCS-90 is a federal endorsement on a motor carrier's liability policy. It guarantees payment to the public up to required minimums even for excluded losses, and the insurer may seek reimbursement from the carrier.
Does car carrier insurance cover cars while loading and unloading?
Car carrier cargo coverage may or may not cover loading and unloading, because some forms exclude damage from load shifting or rough handling. Read that clause before binding, since ramps and winches cause many claims.
Is a car covered if it is stolen off the trailer overnight?
A car stolen off a trailer is covered only when theft is included on the cargo policy and any unattended vehicle or secured lot conditions are met. Many forms limit theft after set parked hours.
Does car carrier insurance pay diminished value claims?
Car carrier cargo policies often exclude diminished value unless an extension is added. Dealers bill it regularly after a repaired delivery, so ask for the extension if you haul new or late-model inventory.
Is my car insured while it is being shipped?
A shipped car is protected by the hauler's motor truck cargo policy during transit, subject to its limit, deductible, and exclusions like personal belongings and pre-existing damage. Note every scratch on the bill of lading.
Do owner-operators leased to a carrier need their own policy?
Owner-operators leased to a motor carrier usually need non-trucking liability for off-dispatch use plus physical damage on their own tractor and trailer, because the carrier's policy typically covers them only while under dispatch.
How much does car carrier insurance cost?
Car carrier insurance cost depends on years of authority, driver MVRs, radius, vehicle positions, equipment values, the cargo limit, and loss runs. New authorities pay the most; clean multi-year fleets pay the least per unit.
Every Car On Your Trailer Is Someone Else's Paycheck. We Insure Both.
We write car carrier insurance for hotshots, wedge operators, and stinger fleets in all 50 states. The only question that matters: will the cargo form actually pay the claim your next load produces?
- Cargo wording review for theft, loading, diminished value, and per-vehicle limits
- Quotes from trucking carriers that write auto haulers, not just general freight
- MCS-90 and BMC-91X filings handled so authority stays active
- Broker and dealer certificates turned around the same day
Quotes are free. Call 888-900-0205 to get started.