Does your business transport cars for your customers?

Then you might want to consider car hauler insurance. Car hauler insurance will cover you in the event you get in an accident. Whether you damage the vehicles you’re transporting or you damage your carrier. 

But it’s important to note that auto hauler insurance policies are not alike. Getting the right policy for your business can save you thousands of dollars in damages.

In this guide, you’ll learn what car hauler insurance is, what kind of companies need it, and how to choose the best policy for your business.

Without further delay, here is what you need to know about car hauler insurance.

Everything you Should Know About Car Hauler Insurance–A Complete Guide

This guide will inform you about the intricacies needed to know about car hauler insurance. Whether you have a trucking company or haul vehicles, here are the facts you need to know.

1. Businesses That Need Car Hauler Insurance

Many companies would benefit from auto hauler insurance to protect them from the risks they face on the road.

These businesses should purchase car hauler insurance:

  • Auto transport businesses that deliver vehicles for their customers
  • Auto body shops that use auto carriers
  • Car dealerships with vehicle carriers
  • Companies that have contracts with several auto dealerships

While the type of insurance your business needs differs between auto carriers, being covered will protect your company against hazards and risks on the road.

2. How Insurance Companies Determine Rates 

Want to know your rates? Car hauler insurance rates are determined by several factors.

Typically, what you’ll pay for a policy depends on the details and history of your company. When setting rates, insurance companies weigh multiple criteria to calculate risk.

Here are some criteria they may use to decide on how much you’ll pay for your policy:

  • The type of cars you haul (are they new or used?)
  • The value or worth of your trucks or vehicles
  • The history of your drivers
  • The loss history of your company
  • How many traffic tickets you or your drivers have had in the recent past
  • The distance you haul or your radius
  • Your geographical location
  • The location and other details about your contracted customers

All these factors will affect the rate of your policy. Your drivers motor vehicle history makes a large impact on your rates. Each driver’s motor vehicle record plays a factor in how much you’ll pay.

When the drivers you hire have gotten speeding tickets, citations or caused accidents, insurance companies consider them high risk. A high-risk driver can rack up your insurance policy rate.

3. How Your Geographical Location and Your Radius Influences Your Insurance Rates

The geographical location of your company will play a role in what you’ll pay for insurance.

If your business is located in an area known for high accident statistics, your rate is more than likely to be higher than a location that has fewer incidents of traffic accidents.

While your business location takes precedence to determine rates, so does your hauling radius, or the distance your carrier travels.

The insurance agent will ask you how many miles you travel for hauling. They’ll also want to know if you cross state lines.

4. Different Types of Coverages Required and Recommended for Car Hauler Businesses

When shopping for auto hauler insurance there are three kinds of coverages that you need. These coverages can ensure your financial and medical protection in the case of an accident. 

With many risks on the highway, it’s wise to protect yourself in case you get in an accident. Being protected by the following coverages will give you peace of mind when you hit someone or damage your carrier. 

Auto Liability

Auto liability is required by law. This coverage will protect you when you strike another vehicle. Liability will cover you for both property damage and bodily injury liability.

Remember, it’s not always smart to go with the minimum coverage. If your insurance claim is higher than the minimum, it’s likely you’ll have to pay the balance out-of-pocket. 

Liability covers you for the costs you’re legally required to pay when you hit another driver. It covers you for their injuries and if you damage their property.

You’ll be covered for their medical costs and to replace or repair their vehicle. It will also cover you for the amount you’re insured for if they sue you. But liability won’t cover damage to your car hauler.

Physical Damage Insurance 

Physical damage insurance covers you when the accident is your fault or is caused by theft, the weather, and other instances. 

Car haulers can be expensive. That’s why it’s critical to protect your investment with the right insurance.


One of the coverages under the physical damage insurance label is collision coverage. Collision coverage can help you replace or repair your vehicle when you cause an accident or hit something like a curb or median.


Comprehensive coverage will cover damage done to your car that is unrelated to accidents.

Some of these losses can include vandalism, theft, fire, and falling objects such as when a tree falls and hits your vehicle or when you strike an animal such as a deer.

Make sure to ask insurance agents what exactly they cover for physical damage and comprehensive.

Cargo Insurance

Cargo insurance protects your business from a variety of losses when you’re in transit. Some of these losses include theft, loss or damage.

Insurance companies offer different types of cargo insurance. So make sure to ask what they cover. Their answers can help you choose the best insurance company.

It’s essential to ensure you get enough cargo insurance to cover all the vehicles you haul to avoid risk. What’s also necessary is knowing what is not covered by your cargo insurance policy. 

5. Make Sure to Compare Quotes from Several Insurance Companies

By getting several quotes from insurance companies, you can compare pricing, rates, and coverages.

Never sign with the first car haul insurance company you speak to before you check out multiple insurance providers. This will enable you to get a lower rate than you may have expected.

The Bottom Line on Car Hauler Insurance

In this guide, you’ve learned the essentials about car hauler insurance. Knowing what’s in your policy can help protect your business from owing thousands of dollars you might never need to spend.

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