Car Hauler Insurance: What You Need to Know

Car hauler insurance is a type of commercial auto insurance that protects businesses from the liability risks of towing and moving customers' vehicles. Companies that need a car hauler insurance policy include auto body shops, car dealerships, and companies that transport vehicles cross-country. Many commercial car insurance companies offer car hauler insurance as part of their business insurance packages.

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Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Written by Sara Routhier
Director of Outreach Sara Routhier

Cynthia Lanctot is an insurance professional with ten years of industry experience. Cynthia is licensed in several states, and holds an associate in claims law, as well as a bachelor’s degree in English. Cynthia’s experience includes the New England and Northeast states. She currently works as a liability claims professional and an occasional online contributor.

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Reviewed by Cynthia Lanctot
Licensed Agent Cynthia Lanctot

UPDATED: Jan 25, 2022

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A Concise Overview

  • Car hauler insurance offers coverage for both your truck and the cars you are transporting
  • The Federal Motor Carrier Safety Administration (FMCSA) will require you to have at least liability insurance and $1 million in commercial auto insurance coverage for your business to operate
  • The average cost of car hauler insurance policy is between $800 to almost $1500 a month 

When you first break into the car hauling industry, car hauler insurance may seem like an unnecessary expense. Isn’t your personal car insurance enough to protect your business? 

Unfortunately, your personal auto insurance does not include any type of commercial activity like car hauling. So, if anything were to happen to your cars while on the road, you would be the one held responsible for the damages. Not to mention, the auto hauling business is booming, and in order to compete, you’ll need to meet the industry’s legal requirements. You need the right commercial auto insurance to be protected.

Unsure of how to get started? Read this guide for more information on car hauler insurance cost and coverage. Before you start, enter your ZIP code for free auto insurance quotes from top companies.

What are the coverage options for car hauler insurance?

When you open a car hauling or towing business, it can come with a significant number of risks. If any accidents or thefts happen while you’re on the road, you’re held responsible for the damages. And since you need to protect both your truck and the cars you’re hauling, it can become an expensive risk.

Car hauler insurance can protect you in case anything does happen. It’ll take the weight off your shoulders and leave you to focus on getting your job done. 

So, what exactly does auto hauler insurance cover?

  • General liability
  • Collision/comprehensive
  • Uninsured or underinsured motorist
  • Bodily injury
  • Medical payments

As a licensed car hauler, the Federal Motor Carrier Safety Administration (FMCSA) requires that you have at least liability insurance and $1 million in commercial auto insurance coverage in order to operate. 

Additional Offers

Along with basic coverage options, it may be beneficial to purchase additional coverage policies so that your business is fully protected. These can include: 

  • Cargo Coverage – This will cover the costs to repair or replace your damaged cargo in the event of an accident or theft. 
  • On-Hook Coverage – If any damages happen to a car while it’s being towed, this coverage will pay for the repairs or cover the cost to replace it. 
  • Garage and Operations Coverage – Another type of liability insurance, this policy will protect your day-to-day business dealings, such as property damage and bodily injury.
  • Unattended Truck Coverage – Whenever your hauling truck is left unattended, there’s a chance that someone might break into it or damage it. This coverage will protect your vehicle, the cars it’s hauling, and the items inside. 

The amount of coverage you need depends on how big your hauling business is, as well as what you believe will best benefit your business. In general, it’s best to have at least a minimum of $100,000 in coverage with these additional options.

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Who needs car hauler insurance?

Are you unsure whether or not your business actually needs auto hauler insurance?  Here’s a quick list of the types of businesses that benefit from this extra coverage:

  • Any business that offers auto transportation for customers, such as an auto repair shop 
  • Any business that works with different car dealerships
  • Auto body shops and other businesses that have a car carrier
  • Any car manufacturers or companies that ship cars from the factory to the dealership

Different businesses will need different coverages. It will depend on how they operate and what they need to protect. Put simply, your commercial car insurance should be tailored to your specific needs.

The Cost of Car Hauler Insurance 

The average cost of a car hauler insurance policy can be anywhere between $800 to almost $1500 a month. However, several different factors will affect the final cost of your car carrier insurance policy premium, such as:

  • The nature of your business operations
  • The size and type of your hauler
  • The average number of cars your business transports
  • Whether you’re hauling across state lines or in-state
  • The types of cars that your business transports
  • Your business location
  • The total amount of car haulers you’re ensuring

What’s Not Covered 

Car hauler insurance covers you for a variety of expenses and damages when an accident happens on the road. But, there are situations where you may not receive coverage. 

These can include: 

  • Employee medical expenses that aren’t due to an accident in the car hauler.
  • Medical accidents or injuries that happen when the employee uses their personal car for any business-related tasks.

Shop Quality Car Hauler Insurance Quotes

Car hauler insurance protects you and your business, but finding the best coverage can feel challenging. Even if you’ve found an insurance company that claims to offer car hauler insurance at a competitive rate, how do you know for sure that you’re actually getting the best insurance coverage at the best price?

Comparing rates is the only way to guarantee that what you’re being offered is the best deal you can get. Fortunately, with our pricing comparison tool, getting a quote and comparing it to other insurance companies is quick and easy to do. 

When you’re looking to protect your business dealings and meet the industry’s legal requirements, check out our website to find an insurance company that can go the extra mile.

Before you buy car hauler insurance, make sure you have compared rates for the best deal. Enter your ZIP code now for free quotes from top auto insurance companies today.

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