If you have car carriers, it’s important to get the right car hauler insurance to protect your business. But it might seem like a very complicated can of worms. To help you out with making heads or tails of auto hauler insurance, we’ve put together a list of 10 things that are important to know.
10 Things You Should Know About Insurance for Car Carriers
1. Different types of businesses need auto hauler insurance
There are plenty of businesses that need auto hauler insurance. For example:
- Car dealerships that have car carriers.
- Businesses that do auto transport and move cars for clients.
- Businesses that have contracts with multiple car dealerships.
- Auto body shops that have a car carrier.
Each of these business types needs different coverages to protect them from the risks they face. They’ll need tailored insurance for car carriers so they can manage their risks.
2. You’ll need different coverages to protect your auto haulers
There are a few important coverages to consider so that you can ensure you’re protected from the numerous risks you face on the road. Each of these coverages protect you from potential disasters, so you can hit the road with peace of mind.
- Auto liability
- Bodily injury liability
- Property damage liability
- Physical damage insurance
- Cargo insurance
These are some of the main coverages that car carrier businesses can consider to protect themselves from various risks. (We’ll explain more about these coverages in a minute.)
3. Liability insurance doesn’t cover your car carrier if it’s damaged
Your liability will only cover the costs you’re legally obligated to pay to another driver if you injure them in an accident or if you damage property. It can help you cover their medical bills and the repair or replacement of their car, for example, and it can help you if they sue.
But it won’t cover damage to your car hauler.
However, physical damage insurance can help you get your truck back to work as soon as possible if it’s damaged. There are generally two pieces to physical damage insurance:
- Collision coverage helps you repair or replace your vehicle if you’re in an accident or otherwise collide with something.
- Comprehensive coverage helps cover losses other than accidents, such as fire, vandalism, falling objects (for example – trees), animal strikes, and theft.
Car haulers are not cheap, which is why it’s important to protect your investment with physical damage insurance.
4. Your car hauler insurance rates depend on many different factors
Your insurance rates depend on a lot of details about your business. Insurance companies look at a lot of different factors when setting rates so they can get an idea of how much risk you present.
For example, the following can affect your insurance rates:
- What kind of cars you haul (New, used, scrap, wrecked)
- Your drivers
- Your truck
- Loss history
- Traffic tickets
- Hauling radius
Because all these things can affect your rates, it’s important to get auto hauler insurance quotes. This will give you the best idea of what a fair price will be for quality coverage.
5. Where you’re located and your radius can affect your rates
Where your business is located makes a difference to your rates. The insurance company will also want to know if you cross state lines and how far you go (your hauling radius).
6. You need to make sure you adhere to all car carrier insurance requirements
Your contracts may require that you carry a certain amount of car hauler insurance (For example, a contract could require that you have somewhere between $150,000 and $500,000 of cargo insurance).
Another tip – don’t forget to tell the agent assisting you with quotes about any insurance requirements that your contracts outline. This will help the process of getting quotes and binding coverage go much more smoothly!
Anyway, bottom line is to be aware of legal requirements and contractual requirements for your car carrier insurance.
7. You need to make sure you have the right cargo insurance
It’s really important to make sure that you have enough cargo insurance to cover the vehicles you’re hauling. It’s also important to know exactly what is and isn’t covered by your cargo insurance. You need to have the right coverage to truly protect your business.
8. Your drivers’ Motor Vehicle Records have an effect on your rates
A major factor that can impact your rates is your drivers. Their MVRs, or Motor Vehicle Records, can play a part in how expensive your rates are. If your drivers have tickets or accidents on their records, they’re considered riskier to insure because they could cause an accident in the future. And that means your insurance rates could be higher.
Moral of the story: hire drivers who are committed to safety.
9. Committing to safety can help you save money on your insurance rates
By committing to safety at your trucking business, you can help your drivers avoid accidents – and the subsequent insurance claims. And the fewer claims you have, the better your loss history. Over time, that can help you get lower car carrier insurance rates because you have a cleaner record. Being truly committed to safety helps you keep your drivers from harm and lower your car hauler insurance rates.
10. It’s important to get multiple quotes for car hauler insurance
By getting multiple quotes, you can compare coverages and pricing. Simply taking the time to check out a few different carriers can help you get comparable coverage for a lower rate than you originally thought possible. At any rate, don’t feel like you have to go with the first company that gives you a quote. Give yourself some options.
Now, getting multiple quotes for auto hauler insurance might sound like a lot of work. We make it easy. Fill out our online quote form or give us a call today to get started with your car carrier insurance.