A Guide to Car Hauler Insurance Coverage

In 2019 alone, the car hauling industry generated more than $12 billion. This is a significant jump from the year 2014. As you could predict, the car hauling business has become quite desirable in the eyes of many. However, if you want to reap the benefits of this industry, you need to purchase car hauler insurance coverage first.

So, to run your business successfully, you must learn all there is to know about car hauler insurance coverage.

Car Hauler Insurance Coverage Guide

The coverage necessary will depend on your state and local laws regarding minimum insurance requirements.

Here are the coverages you’ll need for your car hauling business:


Auto liability is required in every state for all drivers regardless of the type of vehicle they own. The only difference is the amount of coverage necessary. Different commercial vehicles have specific minimum insurance requirements when it comes to auto liability. This is because some trucks carry more risks than others. For example, car haulers are very expensive trucks and they’re responsible for hauling tens of thousands of dollars in cars, if not more. So due to the level of risk involved, the required amount is typically higher.

So, if you’re a car hauler, you’ll want to find out what your state’s minimum insurance requirement is. Typically, you’ll want to get more than the minimum amount since the liability risks are higher. In fact, $1 million in liability coverage is required by the FMCSA for car haulers.

By aiming for a commercial-grade liability, you’ll be able to handle the costs of legal proceedings, damages, or injuries if and when they occur.


Cargo coverage is an essential part of your car hauler insurance policy. On the highway, the vehicles you’re hauling are at risk since the trailer is not enclosed. Possible damage can occur from multiple sources such as the weather, debris, leaking fluids, flying objects, and more.

The hauled vehicles may suffer a loss during transportation, and if you don’t have cargo coverage, you’ll be left covering hundreds of thousands of dollars in damage. Unfortunately, a claim like this can completely ruin a trucking company and bankrupt you.

So, purchasing at least $100,000 in cargo coverage will pay to replace or repair the cars. First, we suggest talking with your insurance provider to establish what coverage limit works for you. If you’re hauling new cars you may need more than $100,000.

Collision and Comprehensive

Not only is the cargo of high value, but your vehicles are also of high value too. This is why you must have a collision and comprehensive coverage. In case of any collisions or other damages, this policy will have you covered.

Auto liability insurance will not cover your car hauler as it typically only covers the damages you cause to the vehicle and/or property of others. So, the collision and comprehensive coverage will compensate for any damages your car hauler incurs, accident or not.

What Can Affect My Rates?

There are many things that can drive your insurance premiums up and down, such as:

  • The age and experience of your drivers
  • Whether you haul new, used, or wrecked vehicles
  • Your hauling radius
  • The limits and deductibles you’ve chosen
  • Your claims history
  • How long you’ve been in business
  • The number of trucks you haveĀ 
  • Training and licensingĀ 


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