US freight trucks moved 10.8 billion tons of freight in 2017. A large portion of this freight is fully built vehicles. This unique sector of the transportation market is called car hauling. However, if you want to provide car transportation services, you need more than just trucks and drivers.

Car hauler insurance provides your new logistics business with the necessary protection. While you may have experience buying car insurance for yourself, this is a bit more complicated.

Ask these five questions when shopping for car hauling insurance.

1. Do I Need Insurance?

You don’t need to be a professional car hauling transport service to need this type of insurance. Car dealerships, auto body shops, rental agencies, or businesses working with dealerships all need this type of coverage. Businesses that need auto hauler insurance move vehicles for themselves or for other businesses that own vehicles.

2. What Coverage Do I Need?

Coverage will vary based on the business and type of hauling that it is protecting. The first step is to determine what types of coverage you need and how much of that coverage you need.

Auto liability coverage is similar to your consumer car insurance that gives you bodily injury and property damage liability coverage. These coverages payout if anyone gets hurt or anyone’s property gets damaged while you are in the act of transporting a car.

Physical damage insurance covers accidental damage from the result of a collision. This is two-part coverage, including collision and comprehensive. These coverages are similar to your consumer car insurance.

The final common coverage included is cargo insurance. This coverage protects the cars that you are in the act of hauling.

3. What Do My Contracts Say?

Check your client contracts because they may require that you carry a certain amount of insurance. Typically, they outline a dollar value of coverage that you need to have. Make sure you know these coverage requirements to ensure you buy enough coverage to stay in compliance with your contract.

Additionally, check for specific types of coverage or terms, or other requirements. Let your insurance agent know about these to ensure you get an accurate quote.

4. What Is the Cost?

Understand upfront that several factors go into an insurance rate and that your costs will be unique to you and your business. If you request quotes for 3 car hauler insurance costs, they will generally be more expensive than 2 car hauler insurance costs.

These factors will affect your car hauler insurance quotes:

  • The type of cars you haul
  • Type of hauling truck
  • Drivers
  • Loss history
  • Contracts
  • Hauling radius
  • Location
  • Traffic Tickets

5. What Is the Company’s Reputation?

Only buy insurance from a company that’s reputable and trustworthy. There’s no point in having an insurance policy if the company you bought it from makes it impossible to file a claim.

Read the reviews from current and former customers. Look for a company that offers a range of insurance solutions, affordable rates, and quality customer service.

Purchase Car Hauler Insurance

Whether you’re looking to purchase multiple or single car hauler insurance, keep these five questions in mind. This will help you find a reputable company with quality insurance products. This will protect you, your car hauling business, and the cargo on your trucks.

Browse our other business articles for helpful advice that will guide you through the rest of your financial business decisions.

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