Car Hauler Cargo Insurance: Per-Car Limits & High-Value Vehicles
Updated: 17 hours ago
Having $250,000 in cargo insurance doesn’t necessarily mean every car on your trailer is covered for that amount.
Some car hauler policies have a separate limit for each vehicle. That can become a problem when you’re transporting expensive SUVs, pickup trucks, or luxury cars.
Here’s what you need to understand before buying cargo insurance for your car hauler.
If you’re looking for an overview of all the coverage car haulers need, start with my Car Hauler Insurance Guide. This article focuses specifically on the cargo insurance details.
Prefer to watch? Here's my quick video on what your car hauler cargo policy might not cover:
Does Your Cargo Insurance Have a Limit for Each Car?
Let’s say your policy has $250,000 in total cargo insurance, but only $50,000 for each vehicle.
You’re hauling an SUV worth $85,000, and it’s totaled in a covered accident. The most the policy could pay for that SUV under its per-car limit is $50,000, before any applicable deductible. That could leave a $35,000 difference.
Some policies offer higher limits for each vehicle. The important thing is making sure your coverage matches the value of the cars you’re transporting.
What If You’re Hauling Several Expensive Cars?
If you’re transporting eight vehicles worth $60,000 each, that’s $480,000 worth of cars.
With a $250,000 limit for one covered accident, you could be short by $230,000 if the entire load is destroyed. Increasing the total limit may help, but a separate limit for each car could still apply.
For more examples of how cargo limits work, read my article Motor Truck Cargo Insurance Requirements: Is $100,000 Enough?.
Can You Get More Than $250,000 in Cargo Coverage?
Yes. Depending on your operation, higher cargo limits may be available. Sometimes an insurance company can offer a higher limit directly. Other times, you may need excess cargo insurance, which may provide additional coverage above your regular cargo policy.
But adding more insurance doesn’t automatically remove a $50,000 limit for each car or cover something excluded by your regular policy. Both policies need to be reviewed together.
You can also review my Motor Truck Cargo Insurance coverage page for an explanation of what cargo insurance generally protects.
What If a Car Is Repaired but Loses Value?
This is called diminished value. Say you’re hauling a brand-new $70,000 vehicle. It gets damaged, and repairs cost $10,000. The dealership then claims the vehicle is worth $5,000 less because it has an accident history.
That $5,000 loss in value is separate from the repair bill. Some specialized car hauler policies may cover it; others don’t.
What If a New Car Is Too Damaged to Be Sold as New?
Sometimes a brand-new vehicle gets damaged badly enough that repairing it may not be an acceptable solution. Certain specialized policies may treat it as a total loss even when repairs are possible. This is called constructive total loss coverage.
A dealership refusing a repaired car doesn’t automatically mean insurance will pay for a replacement. The policy has to cover that situation, and its conditions must be met.
How Much Will Insurance Pay for a Brand-New Car?
A new SUV might have a $75,000 sticker price, but that doesn’t automatically mean the cargo insurance will pay $75,000 if it’s totaled.
Some policies base payment on what the vehicle was worth at the time of the loss. Others may have special rules for new vehicles. Check how the policy determines the vehicle’s value.
Is Damage During Loading and Unloading Covered?
A driver could scrape a bumper while loading, damage a vehicle while unloading, or hit an overhead obstruction with a car on the trailer.
Some cargo policies cover certain accidents like these. Others have restrictions or exclusions. Don’t assume every type of damage is covered just because you have cargo insurance.
Does Your Deductible Apply to Each Damaged Car?
Some car hauler policies have a deductible for each damaged vehicle rather than one deductible for the whole accident.
If the deductible is $2,500 per vehicle and three cars are damaged in one covered accident, you could be responsible for $7,500 in deductibles. Other policies handle this differently.
How Can Alex Help?
When I’m quoting car hauler insurance, I look at the types of vehicles you transport, the highest-value car you might haul, and the total value of your loads.
I also review the limits, deductibles, and coverage restrictions so you understand the differences between your insurance options. Depending on your operation, higher cargo limits and specialized coverage may be available.
Related Resources
Coverage depends on the policy, including its limits, deductibles, and exclusions. These examples are for illustration and do not guarantee how a claim will be handled.
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