Are you trying to get into the car hauling transportation business? Vehicle transportation is a small niche, but once you get your business going, it can become a very lucrative profession.
If car hauling is what you want to get into, you’ll need to get the proper insurance. There are differences in the types of car hauling insurance you’ll want to get. You’ll need to ask what type of liabilities and damages it covers.
Are you wondering what the difference in cost is for car hauling insurance? If so, you’ll want to keep scrolling and check out this guide.
Car Hauling Insurance Basics
Car hauling is a profession that rests a lot on responsibility. The risks can range from damage to vehicles, theft, accidents, and even property damage. These issues can be hard to prevent, and the damage in terms of value can easily get into six-figures.
This is why you’ll want to get insurance that covers the mandatory minimum for commercial auto insurance, which is $1 million in coverage set by the Federal Motor Carrier Safety Administration.
What Are The Types of Insurance Available?
Dealerships or vehicle contractors will require certain types of insurance, depending on the job. Here are the different types of insurance you’ll want to look into.
Diminished Value Insurance
Diminished value is the loss of value of the vehicle after the crash, even if repairs have been done.
This will lower the resale value due to its damage history. This type of insurance will protect you from this liability.
This type of insurance covers the cost of damages done to the cargo. It will cover any costs relating to repairs or replacement.
Some insurance will cover your cargo and vehicle, but may not cover the trailer itself. If you don’t have this type of insurance, you run the risk of not hauling any cars from not having a trailer.
Always look at your policy and make sure that it has trailer insurance, so you know its covered.
Unattended insurance covered the cost of damages that occur when your cargo is left unattended. This could from damage that occurred while your parked or your haul is left in storage or any other facility.
Most insurance only covers damage that happens in a collision or while you were driving.
This is insurance should be considered.
What Levels of Coverage Do You Need?
A certain amount of car hauler insurance is needed, and some cases are required to have a car hauling business. If you’re a contractor with a business relationship with a dealership, they’ll let you know what type of insurance is required.
If you own your own business, this will depend on how much insurance you’ll want. You can pick and choose from the different types of insurance we’ve talked about above. But, if you choose to skip on some of them, it may limit you from taking certain car hauling jobs.
How Much Will Car Hauling Insurance Cost?
Car hauling insurance cost depends on many factors. These factors depend on the following. Size of vehicle and trailer, size of your business, the estimated value of cars, and If you travel between state lines.
Insurance monthly rates range between $700-$2000. A car hauler insurance adjuster will be able to tailor your needs and find you the right type of insurance, depending on your budget and scope of your operations.
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