Posted by Did you know that the National Association of Insurance Commissioners (NAIC) has certain standards that every insurance auto transport company must fulfill to be allowed a license to practice? Shockingly, over 30% of Americans are aware of this information!
Having accurate information on the auto transport insurance requirements helps you stand a really good chance of getting the best shipment for your vehicle, and that’s why we are here!
This article is set to give you adequate information on auto transport insurance requirements so you can rightly demand what’s yours. It will cover legal, state, and special requirements. In addition, we will provide some helpful tips that would make your car transition seamless.
Get a seat! Let’s go on a ride!
Table of Contents
NAIC Approved Auto Transport Insurance Requirements
The NAIC as a body in charge of insurance, has specific standards that every auto transport company must meet. These standards are:
- All drivers are required to have liability insurance; this provides coverage if they happen to cause an accident. The minimum amount for liability insurance varies from state to state, but the vast majority require that a company has a minimum of $1 million in coverage.
- Companies must be licensed and regulated by the state in which they operate.
- Companies should have a Motor Carrier (MC) Number, registered with the Department of Transportation.
- Companies should provide cargo insurance. This is to provide coverage for customers’ vehicles if there is any damage while it is being transported.
- Companies must have financial stability, enough to pay out claims if the need arises.
- Companies must have a complaint system in place. This is to ensure that customers are satisfied
- Companies are to provide accurate information about their policies to customers. This allows the customer to make an informed decision as regards whether or not they want to work with the company.
You must understand these requirements as they are your right. Some auto transport companies won’t adhere to these regulations if you don’t demand them, but you cannot demand them if you don’t know what is well within your rights.
What do you think happens if a Stolen Car is Found After Insurance Payment? Learn from this great guide.
Specific Auto Transport Insurance Requirements
You might be acquainted with the information above and still miss out on a good deal or get into a bad one.
Here are the requirements you should consider personally before you choose a shipping company for your vehicle:
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Company’s Reputation:
It is important to know if the company you want to work for has a good reputation for its insurance policies and coverage. This could help you if you need to make a claim.
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Insurance Policies:
You may not want to consider this, but it is necessary. Some companies attach waivers to their terms stating that they won’t be responsible for damages to their customer’s vehicles. With good assessment, you can select an auto transport company with an insurance policy that satisfies you
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Coverage Type:
There are different kinds of coverage provided by each auto transport company. Each coverage will only apply when there is damage that relates to it.
To get the best, you should review the coverage types and know what is covered by the auto transport company. You will also know if you have to obtain additional coverage.
See this: Do you Need Insurance To Ship Your Car?
Various States’ Minimum Requirement For Insurance Coverage
The minimum amount required of auto transport companies by the NAIC, for insurance coverage, is $1 million. Nevertheless, some states demand less.
Here’s a list of States in the USA and their minimum insurance coverage amount:
- Alabama – $750,000.
- Alaska – $1 million.
- Arizona – $1 million
- Arkansas – $1 million.
- California – $1 million.
- Colorado – $1 million.
- Connecticut – $1 million.
- Delaware – $1 million.
- Florida – $300,000
- Georgia – $1 million.
- Hawaii – (No Specific Amount)
- Illinois – $1 million.
- Indiana – $1 million.
- Iowa – $1 million.
- Kansas – $1 million.
- Kentucky – $1 million.
- Louisiana – $750,000
- Maine – $1 million.
- Maryland – $ 750,000
- Massachusetts – $1 million.
- Michigan – $1 million.
- Minnesota – $1 million.
- Mississippi – $1 million.
- Missouri – $1 million.
- Montana – $1 million.
- Nebraska – $1 million.
- Nevada – $750,000
- New Hampshire – $1 million.
- New Jersey – $750,000
- New Mexico – $1 million.
- New York – $1 million.
- North Carolina – $1 million.
- North Dakota – $1 million.
- Ohio – $1 million.
- Oklahoma – $1 million.
- Oregon – $750,000
- Pennsylvania – $1 million.
- Rhode Island – $1 million.
- South Carolina – $1 million.
- South Dakota – $1 million.
- Tennessee – $750,000
- Texas – $1 million.
- Utah – $1 million.
- Vermont – $1 million.
- Virginia – $1 million.
- Washington – $1 million.
- West Virginia – $1 million.
- Wisconsin – $1 million.
- Wyoming – $750,000
Read Also: Driving To Work Without Commuting Insurance
How These Auto Transport Insurance Requirements Help You
Knowing and adhering to your auto insurance transport requirements could be of real help to you. Here’s how it can help:
- Avoiding fraud
- Inadequate coverage
- Insurance details
- Avoiding fake companies
- Avoiding bad services
1. Avoiding Fraud:
There are fraudulent transport companies everywhere and you can’t tell them at a glance. You could be given fake information about their insurance coverage. They could even be car thieves posing as an auto transport company.
Making requests according to the requirements already given will help you avoid being a victim.
2. Inadequate Coverage:
Some companies provide inadequate coverage for vehicles and the customers take the fall if there are any damages. Some companies even include waivers that ensure that they do not take responsibility for customers’ vehicles, even though they are the company in charge.
3. Insurance Details:
You can never “over review” a company’s Insurance policy. It is the fine details that determine how covered you are. You can never waste too much time on your own protection. So, review the policies again and again, until you are truly satisfied.
4. Avoiding Fake Companies:
While some companies lie about their policies, others do not exist at all. Companies like these present fake certificates and pretend to deliver auto transport services. This is why any company you choose to consider, should already have a reputation for excellent delivery.
5. Avoiding Bad Services:
Some companies are neither fraudulent nor non-existent. But they provide horrible services to their customers. This could be through policies or a means of actual car transport. Read several people’s reviews on the company website and don’t forget to ask people questions about the company.
5 Helpful Auto Insurance Tips
In addition to ensuring you get the best insurance plan and company on board.
Here are some tips that could help you protect your vehicle:
- Documentation
- Certification
- Clean Out Your Car
- Check With Your Auto-Insurance Company
- Pre-Shipment Inspection
#1. Documentation:
You simply cannot assume when making a deal with an auto transport company. Ensure that every agreement is written down, signed by all the parties involved, and finally documented. Have a copy of every signed document, you might need it in court.
#2. Certification:
Some companies may promise all kinds of coverage that don’t exist. To fish them out, ask for proof of insurance. It could be in the form of a certificate or an equivalent document that could be presented in court.
But ensure you have no dealings with any company that shies away from presenting proof of insurance to customers. It is a red flag.
#3. Clean Out Your Car:
Remove very valuable possessions from your car before handing over the keys to the driver in charge. This practice ensures that your belongings are safe. This is really important if you do not have additional coverage to cover for damaged or stolen belongings.
#4. Check With Your Auto-Insurance Company:
In most cases, your auto insurance company will not be the same as the auto transport company shipping your vehicle. Since this is a likely event, you must let your regular auto insurance company know that you are shipping your vehicle.
You could find out how much coverage they would provide for a vehicle in transit and how much your transport company will have to cover.
#5. Pre-Shipment Inspection:
Your auto transport company is going to run its inspection before shipping. You shouldn’t rely on them. Inspect your vehicle by yourself before handing over the keys. Remember to take a lot of pictures. This would be necessary for a claim.
Frequently Asked Questions
[sc_fs_multi_faq headline-0=”h3″ question-0=”What are the minimum auto transport insurance requirements in the U.S.?” answer-0=”The minimum requirement for auto transport insurance in the US is $1 million of liability coverage. However, this amount doesn’t apply to some states. It is best to make inquiries from the specific insurance department of a state.” image-0=”” headline-1=”h3″ question-1=”Is it possible to get more than the minimum required insurance for auto transport?” answer-1=”Yes, it is possible to get more than the minimum required insurance for auto transport. This would require purchasing additional insurance coverage.” image-1=”” headline-2=”h3″ question-2=”Why would I want to get more than the minimum auto transport insurance coverage?” answer-2=”You may need to purchase additional coverage if your vehicle is worth more than the coverage made available for it. You could also need more coverage if you are doing an international shipment.” image-2=”” headline-3=”h3″ question-3=”How do I know how much auto transport insurance I need?” answer-3=”It depends on the value of your car, the distance to be covered, and the punt of coverage already provided.” image-3=”” headline-4=”h3″ question-4=”Can I get auto transport insurance through my regular car insurance company?” answer-4=”Yes, It is possible to get auto transport insurance through your regular car insurance company, but that is only if your auto insurance company also offers transport services or insurance. You can ask your insurance provider about this.” image-4=”” count=”5″ html=”true” css_class=””]
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Conclusion
We know that the world of auto transport insurance can be confusing without adequate information. Thankfully, through this article, you already know what is rightfully yours.
Don’t hesitate to ask for it. Also, consider the helpful tips we have suggested to make your car shipping a smooth ride.
We wish your car a safe landing!
Hope to see you visit us again!