Do You Need Insurance When Shipping Cars From State to State?

If you’re looking to move or take an extended stay outside of your home state, shipping your car can often save you time and reduce your chance of issues on the road. There are several options available for hiring a company that can transport your car across state lines. Regardless of which one you choose, it’s critical that you vet the transportation company’s insurance status and that you have your own insurance coverage as well.

Keep reading to learn what you need to ship a car to another state, what insurance is necessary and the costs of transporting your car.

On This Page

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  What Do I Need To Ship My Car to Another State?

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  Do I Need Special Insurance To Ship My Car From State to State?

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  What Ways Are Available To Ship Cars Across the Country?

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  How Much Does It Cost To Ship a Car to Another State?

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  FAQs

What Do I Need To Ship My Car to Another State?

There are a few essential things to consider to help ensure your car arrives safely at its destination and reduce the chances of any damages or mishaps while it’s being transported, such as:

• Research shipping methods: Many people choose to ship their car in an open or enclosed carrier as their shipping method, but other options, such as rail, boat or plane, may better suit their needs in some circumstances. You may also decide that having your car towed by someone else is the cheapest option if it doesn’t have to travel too far.
• Decide on a shipping company: Once you’ve figured out your shipping method, you’ll want to research reputable car shipping companies. Sometimes, you may want to work with a broker who can help you find a reliable company. Whichever route you take, be sure to ask for a copy of the company’s certificate of liability insurance to help ensure you’re working with a reputable carrier.
• Ensure you have enough insurance: You’ll want to verify with your insurance provider if they’ll cover your car while it’s being transported and that you have suitable insurance types, such as comprehensive and gap coverage. While car shipping companies will have a minimum insurance coverage, it may not meet your needs.
• Document your car’s condition: Before your car starts its shipping journey, you’ll need to make meticulous notes on the vehicle's condition, as that record will show if there are any discrepancies in damages once it reaches its destination. Without a detailed report,
  the transportation company can argue that the damage was preexisting and that they do not have to covers it repairs costs.
• Empty your gas tank: Avoid dropping your car off with a full tank of gas, as gas can add unnecessary weight to your car that could increase costs. Heavier and larger cars typically cost more to transport, so try to drop your car off with a half-tank of gas at most to save money.
• Remove personal belongings: While some car shipping companies will allow you to keep a minimum amount of items in your car, they’re not responsible for insuring them and they can add unnecessary weight that could impact your costs. Don’t use your car being shipped to move some of your personal items, as these may also be potentially stolen during transit.
• Remove or tape down loose items: Any decorations or ornaments hanging from your car, such as antenna decorations, should be removed or adhered tightly to your car before transportation to prevent them from getting lost, stolen or potentially flying off and damaging your car.

Do I Need Special Insurance To Ship My Car From State to State?

You don’t need special insurance to ship your car with an auto transport company, which must have insurance coverage. However, a car shipping company may only have the minimum insurance necessary, which may not offer full coverage in a total loss or cover all situations.

Will My Standard Insurance Cover Car Shipments Across the U.S.?

Usually, your standard insurance will cover your car if you ship it to another state. If you have it, comprehensive insurance can cover damages to your car while it is being transported but only against certain perils like vandalism, fire, theft, falling objects and hail.

If you plan to move permanently to your new destination, you’ll typically need to update your insurance within 30 to 90 days, depending on your insurer’s requirements.^[1] It may be worth shopping around ahead of time to ensure you’ll have the necessary coverage once you’re settled in, as getting new car insurance may become lost in the shuffle during a big life event.

Will the Car Shipping Company Provide Insurance?

An auto transport company will have a minimum level of insurance they must cover, with most carriers having cargo insurance limits between $150,000 and $350,000 alongside liability insurance of $1,000,000 or more.^[2] However, a car shipping company’s cargo insurance is divided among all cars carried at a given time in a transport vehicle, so your car may not be covered for its total value in the event of a total loss of the transport carrier if they carry more than one car.

Additionally, if your car is of high value, such as an antique or luxury car, more than the carrier's minimum insurance may be required for your needs. For example, if your car is worth $70,000 but the carrier’s cargo insurance only provides coverage up to $50,000, it may not be covered up to its actual value. In this case, you may need to rely on your own insurance to cover the difference if it’s a covered loss or consider suing the transportation company directly for the difference.

In some cases, carriers may offer supplemental insurance for additional costs if your needs demand extra protection. If you coordinate your car shipment through a broker, who acts as a middleman in this process, they may offload any insurance claims to the carrier or have their own insurance coverage for damage to your vehicle, although it’s not guaranteed. 

Before you finalize any car shipments, ensure you understand the carrier’s limitations on coverage to know whether you need more personal insurance.

What Happens if My Car is Damaged While It’s Shipping and in Transit?

The carrier will resolve any damage claims if your car is damaged during transit. In most cases, the carrier will pay the damage claim immediately.^[3] However, if the damage is minor, there may be more scrutiny. As a result, before you ship the car, you should take extensive documentation of your car’s condition to prove that the damage happened while in their care.

What Ways Are Available To Ship Cars Across the Country?

There are a few different transport methods for shipping your car, which may offer different benefits depending on where you ship it and how much you want to spend. Here are a few options when it comes to getting your vehicle across state lines:

• Open auto transport trucks: If you’ve seen large trucks simultaneously transporting multiple cars behind them on roads and highways, you’re familiar with open transport carriers. While open transport is generally cheaper than enclosed transport, costing 50% to 60% less on average, it may expose your car to road debris like kicked-up rocks or potential vandalism.^[4]
• Enclosed auto transport trucks: This enclosed car carrier safely stores your vehicle inside an enclosed trailer, offering better protection than the open variant. While enclosed carriers can be a more expensive option, it may benefit more expensive vehicles.
• Amtrak railway: If you live on the East Coast, you may have the option to have your car shipped by train via an Amtrak line between Orlando and Washington, DC, which generally takes a week and a half faster than shipping by truck. Keep in mind that a passenger ticket is required for this line and you must ride the train with your vehicle.^[5]
• Drive yourself: Companies like U-haul offer the rental of auto-transport trailers and towing devices you can attach to the back of your moving truck or another vehicle to move your car yourself. As these towing devices are DIY, you’ll typically need to tow your car or get a friend, family member or professional driver to drive it.
• Boat: While it may be more common to ship your car overseas by boat, it may be an option if you need to ship your car to a difficult-to-reach port location, like Alaska or an island like Hawaii.
• Plane: Car transport by air is typically the fastest option for transporting your car. However, it is often prohibitively expensive compared to travel over land unless your car’s value and the necessity of quick transportation justify the cost.

How Much Does It Cost To Ship a Car to Another State?

The shipping price using auto transport companies will run about $2.92 per mile for less than 200 miles but can drop to $0.78 to ship over 1,000 miles.^[6] This rate will vary by company, type of car and how difficult or time-consuming it is to get to your destination. For example, shipping a Toyota RAV4 by uShip from Boston to New York can cost $475 but increases to $1,525 to get it to Los Angeles.^[7]

Higher-priced vehicles like exotic and classic cars can cost up to $3,000 over more standard cars due to additional insurance costs and higher levels of care.^[7] If the Amtrak is a viable solution for you, then using it may be able to cut costs, usually costing between $599 and $1,709.^[5] If your destination is close to a train depot drop-off point, shipping through train freight may be a more affordable option.