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Car Hauler Insurance

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Car haulers need commercial truck insurance that combines multiple policies including liability, physical damage, and cargo insurance for the valuable freight they transport.

According to IBIS World, the car hauling industry did 12 Billion in 2019 across trucks, ships, and rail auto transporters. With the demand for car haulers expected to remain high for the foreseeable future, many truckers are eager to enter the industry. For those that do, the correct insurance coverage is crucial.

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Car haulers need commercial truck insurance that combines multiple policies including liability, physical damage, and cargo insurance for the valuable freight they transport.

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If you're just looking for a few recommendations, here are our top picks for car hauler insurance.

Progressive

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  • Best Overall
  • Will insure new ventures and drivers

biBERK

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  • Competitive Rates
  • Will insure new ventures and drivers

The Hartford

Get A Quote
  • Great for New Ventures
  • Will insure new ventures and drivers

By clicking “Get Quote” or calling you will go to one of our insurance partners. The providers above may not be one of the providers in their network at this time.

What is considered a car hauler?

A car hauler is a vehicle that is used to transport cars from one location to another. Car haulers can be either open or enclosed, single level or multiple, and they are typically equipped with ramps or lift gates to make loading and unloading cars easier.


Car haulers are also referred to as car-carrying trailers, auto haulers, and auto transporters.

What is the standard size of a car hauler and how many cars can they carry?

While there is no “standard” size car hauler, depending on the truck and trailer setup, car haulers can transport anywhere from a single vehicle up to eleven.


However, as electric and hybrid vehicles have increased in popularity, weight can now be the limiting factor rather than the size of the trailer. The battery on hybrid and electric vehicles adds significant weight so car haulers are sometimes unable to fully load their trailer without exceeding federal weight limits. 


In 1982, Congress passed the Surface Transportation Assistance Act, which stipulates that states are not allowed to impose a length limitation of less than 65 feet for traditional auto transporters (5th wheel located on tractor frame over the rear axle) or less than 75 feet on stinger-steered transporters.

Car Hauler vs Tow Truck

Compared to tow trucks, car haulers are designed to transport vehicles over longer distances and depending on the truck and trailer setup, can transport more vehicles at one time.

Personal & Non-Commercial Car Hauling

Individuals moving their own vehicles for personal use will likely not need commercial car hauler insurance but should confirm with their insurance company that the vehicle being towed is covered in case of an accident.

Who needs hot shot insurance?

Any commercial truck that plans on transporting vehicles will need car hauler insurance. These business can include but are not limited to:



  • Auto Transport Companies
  • Car Manufacturers & Dealerships
  • Auto Body Shops

Trucks Used

Pickups or dually trucks are often used when transporting a few vehicles at a time but semi trucks with larger trailers are also quite common.

Trailer Types

Car haul trailers come in a wide variety of setups but they can generally be broken out into three types:


  • Single Car Trailers – Often towed by dually pickup trucks, these can either be open air or enclosed, which are popular for classic cars and high-end vehicles. These trailers are typically used for deliveries on tight time schedules or for short distances. Depending on the pickup truck and trailer weight, a CDL may not be required.
  • Multiple Car, Single Level Trailers – These trailers can typically haul two, three, four, or even five vehicles. While these trailers are more likely to hit the weight requirements for a CDL, they can still be pulled by heavy duty pickups, though many semi trucks also tow single level trailers. These too can be open or enclosed.‍
  • Multiple Car, Multiple Level Trailers – While some smaller multiple level trailers exist, most multi-level trailers will have a carrying capacity of four to ten vehicles and require a semi truck. Like the smaller trailers mentioned above, these can also be open or enclosed.

Common Risks When Car Hauling

Car hauling typically pays better than dry van trucking but it also comes with additional risk and driver stress. Common risks when car hauling include:



  • Vehicle theft
  • Damage loading or unloading vehicles
  • Improperly secured vehicles getting damaged
  • Debris striking vehicles in open air trailers

Hauling heavy cargo is also more dangerous because it is more difficult to turn or stop. In the event an accident does occur, the damages will likely be worse. 

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Multi-level trailers can also be top heavy and increase the risk of the car hauler tipping in a bad accident.

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.


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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

The MCS-90 is an endorsement that is attached to a motor carrier’s insurance policy to prove that they have the minimum required protection for public liability in an at-fault accident.


Any trucking company that operates either intrastate or interstate is required to carry the MCS-90 endorsement for each vehicle.

Physical Damage

BMC-91 is a filing the FMCSA requires to guarantee the motor carrier has enough liability insurance to cover the risk of transporting cargo across state lines. The BMC-91 is also required when hauling hazardous materials.


Coverage must include bodily injury, property damage, and environmental restoration.

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.

How Much Does Car Hauler Insurance Cost?

Car hauler insurance can cost anywhere from $800 a month to upwards of $1,500 a month. Like all commercial truck insurance, it will vary based on a number of factors including:


  • Car carrying capacity (is it a 1 car hauler or a 3 car hauler?)
  • Types of vehicles being hauled
  • Fleet size (a larger fleet will be more expensive but the per vehicle rate will usually be lower)
  • Car hauler condition (newer vehicles are usually more expensive to insure)
  • Driving record(s)
  • Years in business (new businesses will usually have higher premiums)
  • Location (rates in Florida will be different than in California or Texas)
  • Operating radius


Why is car hauler insurance so expensive?

Car hauler insurance can be more expensive compared to other types of truck insurance because the cargo is more expensive than most alternatives and the increased weight with hauling cars also increases the risks. 

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How to Find Cheap Car Hauler Insurance

Auto haulers looking for cheap car hauler insurance should keep in mind that opting for the “budget option” is not always advised because if an accident does happen, the most important thing is having enough coverage. However, carriers can find the best deal by utilizing the following strategies:

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  • Insuring all trucks from the fleet under the same policy
  • Shopping around for multiple quotes
  • Paying premiums on an annual basis vs monthly
  • Opting for lower policy limits while still carrying adequate coverage
  • Opting for higher deductibles

How to Find The Best Car Hauler Insurance

Motor carriers looking for car hauler insurance should look for providers that specialize in trucking and have specific experience with car haulers.

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As mentioned above, carriers should compare prices from multiple carriers to get a sense of price but to also see what policy options are available and what exclusions each company might have. 

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Additionally, carriers should research each insurance provider option online to see reviews from past customers. While most insurance reviews will be polarizing, it can still be helpful to see what complaints customers consistently have. Complaining about an online portal can be frustrating but it’s preferable to complaints that insurance claims are not getting paid out.

Progressive

Get A Quote
  • Best Overall
  • Will insure new ventures and drivers

biBERK

Get A Quote
  • Competitive Rates
  • Will insure new ventures and drivers

The Hartford

Get A Quote
  • Great for New Ventures
  • Will insure new ventures and drivers

About Car Hauling

  • Is Car Hauling Profitable?

    Car hauling can be very profitable for the right business owner. While the rates can be higher than other types of trucking, the expenses and risks are also greater. In general, trucking is a low margin business so operational proficiency is key. 

  • Do Car Haulers Need a CDL?

    Not all car haulers will need a CDL but it is very difficult to find employment with or lease onto a car hauling company. Most car haulers without their CDL will need to know the industry and operate under their own authority.

  • How to Find Car Hauler Loads?

    Car haulers can find loads any number of ways but car hauler load boards are the most popular. Other options include freight brokers, working with a dispatcher, and forming direct relationships with shippers.