Can You Get Car Hauler Insurance With a New Authority?
Updated: 15 hours ago
Starting a car hauling business with a brand-new DOT and MC number? Getting insurance may be more challenging, but it’s possible.
Some insurance companies accept new car haulers, while others prefer established businesses. Your driving experience, driving record, equipment, and the types of vehicles you transport all affect your insurance options.
Can You Get Car Hauler Insurance Without Previous Experience?
It’s possible, but your options may be limited.
Insurance companies want to know how much commercial driving experience you have, especially with car haulers.
For example, someone with five years of experience operating a nine-car hauler may have more options than someone who has only driven a dry van.
Some insurance companies require previous car hauling experience. Others may consider related trucking experience.
Having a CDL doesn’t automatically mean you’ll qualify for car hauler insurance.
If you’re starting your first trucking company, my New Authority Truck Insurance Guide explains what to expect when shopping for insurance.
How Much Auto Liability Insurance Does a New Car Hauler Need?
Car haulers transporting motor vehicles in interstate commerce generally need at least $1 million in Primary Auto Liability insurance.
This is different from the $750,000 federal minimum that applies to many general freight operations.
Auto Liability covers injuries and property damage you cause to others in a covered accident. It doesn’t cover damage to the vehicles you’re transporting.
For that, you’ll need Motor Truck Cargo Insurance. The amount you need depends on the vehicles you haul, your insurance policy, and customer requirements.
Does It Matter If You’re Hauling New or Used Cars?
Yes. Insurance companies may look at a carrier hauling used vehicles from auctions differently from one transporting brand-new vehicles for dealerships.
The value of the vehicles matters, too.
If you’re hauling expensive cars, you need to make sure your cargo insurance limits are appropriate.
I explain this in my Car Hauler Cargo Insurance Guide, including why having $250,000 in cargo insurance doesn’t always mean every car is covered up to that amount.
How Much Does Insurance Cost for a New Car Hauler?
There’s no standard price.
Two new companies with one truck can receive very different quotes depending on their drivers, equipment, driving records, and where they operate.
A new authority may also have fewer insurance companies willing to offer coverage.
Rather than giving you a random price range, I’d need to review your operation to give you a realistic idea of the cost.
For a broader explanation of the coverages and what affects pricing, see my Car Hauler Insurance Guide.
Can You Add More Trucks After Starting Your Company?
Yes, but don’t assume your insurance company will automatically accept them.
Some insurance companies limit how quickly a new business can expand.
For example, if you start with one truck and want to add three more a few months later, your insurance company may need to review the additional vehicles and drivers before agreeing to insure them.
Check with your broker before buying additional equipment or hiring drivers.
You don’t want to purchase another truck only to find out your current insurance company won’t insure it.
What Do You Need for a Car Hauler Insurance Quote?
When quoting a new car hauling business, I typically need:
• DOT and MC numbers, if available
• Driver information and previous trucking experience
• Truck and trailer details, including their values
• States where you’ll operate
• Whether you’re hauling new or used vehicles
• The most expensive vehicle and total load value you expect to transport
• Your expected insurance start date
Depending on the insurance company, additional information may be required.
When Should You Start Shopping for Insurance?
Before you’re ready to start hauling cars.
If you’re applying for interstate operating authority, the required insurance filings generally need to be on file with FMCSA before your authority becomes active.
Waiting until the last minute can delay your start date.
I recommend getting your insurance options lined up early so you have time to review quotes and arrange the necessary filings.
How Can Alex Help?
I work with new authorities, owner-operators, and small fleets, including car hauling businesses.
I review your driving experience, equipment, operating area, and the vehicles you plan to transport to see what insurance options may be available.
Not every insurance company accepts new ventures, but I can help you compare the options that fit your operation.
Related Resources
Insurance eligibility, pricing, and coverage depend on the insurance company and your individual operation. FMCSA filing and operating-authority requirements are separate from an insurer’s decision to offer coverage.
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