Car dealers, manufacturers, auctions and private collectors rely on commercial car haulers. Whether you own a car carrier or a car hauling business, discover details about the car hauler insurance coverage you need. For more details, see Car Hauler (Car Carrier) Insurance Guide.
What Does a Car Hauler Do?
A commercial car hauler can transport vehicles a few miles across town or thousands of miles across the country. The hauler can work for a variety of businesses, including:
- Dealership
- Manufacturer
- Auto wholesaler
- Towing company
- Repossession company
- Auto repair shop
- Private owner
- Custom car dealer
- Moving company
Risks of Car Hauling
When cars are towed by a commercial hauler, they are secured on the car carrier. The driver is typically responsible for any damage to the car or carrier.
Expect to cover damage if a car is stolen during loading or unloading, damaged when you drive under a low bridge or vandalized while in your care. Other risks include accidents on or off the road, liability for property damage or injury, and theft or vandalism to your carrier or the vehicles you haul.
What Types of Car Hauler Insurance Coverage Do You Need?
Common coverages
- Liability with bodily injury and property damage that covers injuries and damages your car carrier causes
- Medical Payments
- Underinsured or Uninsured Motorist
- Comprehensive, Collision and Specified Peril
- Cargo coverage for the vehicles you transport or store
- On Hook for vehicles you tow
- Garage and Operations if you store vehicles
- Unattended Truck Coverage
- Accessories coverage for a GPS, navigation systems and communication radio
If you operate flatbed carriers or specialized equipment, see Flatbed Haulers Insurance for coverage details that may apply.
How Much Car Hauler Insurance Should You Buy?
Small haulers that hold three or fewer vehicles generally need at least $100,000 in insurance coverage while transporters that haul eight to 10 vehicles often need a minimum of $250,000. You should also carry enough liability and business coverage to protect your company if you are sued.
How Much Does Car Hauler Coverage Cost?
Car hauler insurance can cost from about $800 to $1,400 per month depending on your operations. It is typically more expensive than personal auto insurance because it covers a commercial business handling multiple, often high-value vehicles.
Factors that affect your insurance costs include:
- The size, type and number of car carriers you operate
- The number and type of vehicles you haul regularly
- The location of your business and where you operate your car carrier
- Your state requirements
- The coverage demands of your clients
To purchase the car hauler insurance you need, talk to your insurance agent. Discuss your specific needs and budget as you find the right coverage for your business.
Frequently Asked Questions
Does cargo coverage protect the vehicles I transport?
Yes. Cargo coverage is designed to protect the vehicles you transport against covered perils while they are in your care, custody, or control.
What is "On Hook" coverage?
On Hook covers vehicles that are on your tow truck or carrier while being towed and protects against damage occurring during transport.
Do I need special coverage for unattended trucks?
Unattended Truck Coverage can fill gaps when vehicles are left unattended during loading, unloading, or storage, and is often recommended for haulers.
Will commercial liability cover damage caused by my driver?
Liability insurance typically covers bodily injury and property damage your driver causes, but limits and exclusions vary by policy.