Auto Transport Insurance “Car Shipping Companies”
In the auto transport industry there are two key service providers. They are the trucking company and transport/auto transport broker.
The actual truck that transports your vehicle or any freight for that matter is called a Carrier. Other names that a carrier may be called is an auto transporter, transporter, car carrier, car hauler, truck driver, or trucking company. USDOT (United States Department of Transportation) has rules and regulations that transport carriers have to follow. By law Carriers need to be registered with the USDOT and must hold a valid MC (Motor Carrier) number. The carrier will also need the proper amount of insurance depending on how much vehicles or cargo they will haul at any given time. Most auto carriers have anywhere between 1-10 vehicles at a time and carry from 100,000 to 1,000,000 dollars of insurance. In certain situations a carrier may need to have high property insurance when transporting high price vehicles or cargo. If you vehicle falls into a high liability category you can request the carrier to show proof of adequate property insurance. If any damages occur during your vehicles transport the carriers insurance will cover it. Upon delivery the best way to make sure there is no discrepancies between you and the transport company is to take pictures before and after transport. The first thing to do if you find damages is to report the damages to the transport companies insurance provider.
Auto Transport Brokers or Transport Brokers handle transport of vehicles or cargo by finding in route trucking companies. After a Broker finds a trucking company they will then make arrangements to pickup your vehicle and lightly oversee it’s transport. The Auto Transport Broker or any freight broker needs to be registered with the USDOT and posses a MC number (Motor Carrier number). In order for a broker to get this number they must have a $10,000 bond. This bond is held by a financial institution and is only released if there is a valid claim or if the broker closes their account. The bond is also needed in the case of a claim that the carrier cannot fully cover. The bond can also be used for an unpaid bill claim from a sub contractor such as carrier. However, neither scenarios are likely to happen in the case of any damages or loses to you personal items.
