What Happens If Your Car Gets Lost During Shipping?

Have you ever had that sinking feeling of worry that someone you trusted with a prized possession has lost it?

Some people get this feeling when handing their car over to a shipping company, and it's not without merit as shipping a car does have certain risks attached to it.

While these risks are usually minimal, what happens to you when the worst happens and your car is lost in transit?

In this article, I'll review what usually happens if cars go missing during shipping, steps to take if your car is lost, and alternative methods for transporting a vehicle.

What to Expect When Shipping a Car

Knowing what to expect when shipping a car can help you plan and understand the process better.

Using an experienced team of professionals will help the process immensely. These guys and girls will know how to handle the pick-up and delivery of your automobile in accordance with their established guidelines.

This may include a couple of mandatory stops to check conditions, adjust and verify paperwork, fuel levels, etc., as well as provide additional insurance coverage for any potential damage during transport.

Understanding the process and rules beforehand can help make sure that your car is shipped safely and efficiently.

The Risk of Loss During Shipping

Shipping goods carries the risk of loss, meaning the goods may be lost, stolen, or even damaged during transportation. While this risk is relatively low (below 1%), it's of little consolation when it happens to you.

As a result shipping companies must ensure their customers receive the products securely and in perfect condition to avoid financial losses due to shipping damages or delays.

To minimize these risks, companies should use reliable carriers and determine the best packaging for their products.

Additionally, trackable shipping methods that monitor every movement can help reduce delivery-related issues.

With reliable carriers and appropriate packaging solutions, businesses can skirt most of the lost time and money due to damaged, delayed or broken deliveries.

Steps to Take If Your Car Gets Lost During Shipping

If your car gets lost during shipping, it can be a stressful situation. Annoyingly, these situations can arise from time to time.

Here are some steps to take if your car gets lost during shipping:

Contact the transportation service provider immediately

If your vehicle goes missing during delivery, make sure you get to contact the auto shipping company as quickly as possible.

The quicker you notify them, the better chances there are for the recovery of your vehicle.

You should also provide them with a detailed description.

File a police report and gather evidence of loss

Filing a police report with local law enforcement is essential for your insurance claim for property loss or damage. Gathering evidence of the loss or damage can help to validate the claim and provide a record of when and how it occurred.

When you file a police report it will record vital information you may need for any claim for loss. The document will contain a description of the car, witnesses to the event, and other details regarding the circumstances surrounding the incident.

Police reports also serve as important legal records necessary to file a successful insurance claim, which can be used to make you whole after experiencing financial losses due to someone else's negligence.

Notify your credit card company or insurance company

It is important to contact your credit card company or insurance company if your car was lost during shipping. If you purchased the car with a credit card, you may be covered under the terms of a purchase protection program, which can provide reimbursement for items that are not delivered as described at the time of purchase.

Additionally, some auto insurance policies provide coverage for autos that have been lost or damaged while in transit on behalf of an insured owner. You should review the details of both policies to determine what types of coverage they offer and if they might be applicable to your situation.

Submit an inconvenience claim form with the transport provider

If your car has been lost during shipping and you would like to submit an inconvenience claim form with the transport provider, please review all of the documents that were provided when you hired the provider for help.

Take pictures of any damages and keep all relevant paperwork on hand. Then fill out the full form that includes shipment details, photos of any damages to the vehicle, supporting documentation, contact information, and insurance coverage information.

After submitting the inconvenience claim form, a representative from the transport company will contact you as soon as they can to discuss compensation options.

Insurance Requirements

An auto transport company that is hired to transport a vehicle may need to have insurance coverage for legal reasons.

It is important to verify their coverage limits as you would want them to be high enough to cover the replacement cost if your vehicle were destroyed or damaged during transit.

Auto transport insurance requirements vary by state, so it pays to ask for the specific details of their policy.

Make sure the insurance covers pickup, transport and delivery, and ask the auto transporter if they have any additional coverage or references you can check.

Some carriers only have insurance coverage once your car is loaded onto their truck, so it’s important to find out all this information beforehand in order to protect yourself and your car from any unnecessary losses during its transit.

What Insurance Coverage Covers Auto Transport Damage?

When considering auto transport damage, many types of car insurance coverage are important to consider. Here are some common types of insurance for auto transport:

Cargo insurance

Cargo insurance provides coverage for a range of potential circumstances to safeguard the driver, passengers, fragile and high-risk items in the event of an unforeseen incident.

Comprehensive insurance

Comprehensive car insurance coverage provides protection from unforeseen events such as fire, wind, hail, flood, theft, vandalism and even falling objects or animals causing damage.

As for accidents caused by the transporter driving your vehicle, auto collision coverage is the best policy.

Every insurer is different when it comes to details regarding transport-related claims they will be willing to cover but having this kind of car insurance coverage can be extremely beneficial should something unexpected occur while your vehicle is being transported.

It’s always wise to ask your insurer what exact steps need to be taken before transporting a vehicle so that you can make sure you maximize your coverage and minimize potential financial costs should something happen during transportation.

Can You Ship A Car With No Insurance?

Typically you can ship a car with no insurance as in most states the company handling your car during shipping must have insurance to operate.

Even if it's not required for shipping, having an insurance policy while your car is in transit is a good way to save additional costs should any essential items get lost. This can help protect you from costs should something happen to your vehicle during transport.

In most instances, having your own auto insurance policy might be necessary to at least get your car to a drop-off point, pick it up and possibly drive around town in a destination city.

Depending on the coverage specifics of each policy, in the chance that there are issues with a transporter's insurance, your policy might be able to act as backup support.

Keep in mind that any such claim for loss or damage claim would mean you paying yourself. It will also mean your insurer and premiums could increase after making such a claim.

Processing Time for Claims

Processing time for claims related to cars lost during shipping largely depends on the type of claim and the damage it has caused. Generally, claims related to car loss tend to take longer as they involve a detailed investigation process which is conducted by the insurance company.

It's important for claimants to keep track of all the paperwork since this will have an effect on the timeline of their claim being processed.

To Finish

In conclusion, it's always best to get insured when shipping your car—just in case it gets lost in transit. But with the right planning and precautions, you can avoid these types of problems.

It's ultimately your responsibility to make sure your car arrives safely at its destination so do what you can to ensure a smooth journey.

In A-1 Auto Transport's hands, transporting your prized car is a breeze.

Please browse our website to see our services and what past customers say about their experiences. What are you waiting for, check out our instant quotes today.