Car Hauler Insurance Requirements
Primary Liability
Like all commercial truckers, the federal law requires car haulers to carry at least $750,000 in primary liability insurance. Beyond primary liability insurance, motor carriers hauling cars will want to need additional coverage options such as physical damage and cargo insurance.
Cargo Insurance
Cargo insurance for car haulers is non-negotiable. Because the trailer size and types of vehicles being transported can vary widely, cargo coverage requirements can be anywhere from $100,000 to millions of dollars.
Loading & Unloading
Most cargo insurance policies do not cover cargo while it is being loaded and unloaded. When trucking companies are responsible for high-ticket items such as automobiles, loading and unloading insurance is recommended.
Physical Damage
Although not required by law, motor carriers will want to make sure they properly insure their car haulers in the event of an incident. Collision damage coverage will only cover accidents while driving the vehicle so most opt for comprehensive coverage.
Trailer Insurance
While physical damage coverage protects the power unit, usually a pickup or semi, trailer insurance covers any damage to the trailer unit. Any damage the trailer causes in an accident will be covered by the primary liability policy.
Additional Policies
Other basic insurance coverage options include:
- Medical
- Uninsured/Underinsured Motorist
- General Liability
- Workers Compensation
Car Hauler vs Tow Truck Insurance Options
While car haulers and tow truck operators both involve transporting vehicles, they do not always require the same insurance policies. Two coverage options which tow trucks will require but car haulers typically won’t include:
- On-hook Coverage – On-hook coverage is a tow truck specific coverage option that functions very similar to cargo insurance for car haulers. Car haulers with cargo insurance will not need a separate policy.
- Garagekeepers Liability – Garagekeepers coverage is designed for towing services that need to store customers’ vehicles on their property unattached from their tow trucks. Unless car haulers are storing vehicles on property they own, they do not need to opt for garagekeepers coverage.
