Car hauler insurance

Authority and limits for car haulers

Hauling vehicles owned by others, for pay, across state lines takes interstate operating authority (an MC number) in addition to a USDOT number, like other for-hire freight. For general (non-hazardous) freight FMCSA’s insurance chart sets $750,000 for vehicles rated 10,001 lbs GVWR or more and $300,000 for a fleet made up only of vehicles rated under 10,001 lbs. FMCSA requires no cargo insurance for general freight — only household goods carriers must file it.

How the cars must be secured

The federal cargo securement rules have a section just for automobiles, light trucks and vans that weigh 10,000 lbs or less each (49 CFR 393.128):

• each vehicle must be restrained at the front and the rear against lateral, forward, rearward and vertical movement, with at least two tiedowns;
• tiedowns that attach to the vehicle’s structure must use the mounting points designed for that purpose;
• tiedowns that fit over or around the wheels must restrain the vehicle laterally, longitudinally and vertically;
• edge protectors are not required where synthetic webbing touches the tires.

Vehicles heavier than 10,000 lbs are secured under the heavy vehicle and equipment rule instead, with at least four tiedowns (49 CFR 393.130). The driver checks the load within the first 50 miles, then at each duty change or after 3 hours or 150 miles of driving, whichever comes first (49 CFR 392.9).

The weight lines for car hauler rigs

10,001 lbs or more

GVWR, GCWR or actual weight, whichever is greater — a truck pulling a car trailer is counted as a combination. In interstate commerce: USDOT number, DOT medical certificate, FMCSA safety rules (49 CFR 390.5).

26,001 lbs combined

With a trailer rated or weighing over 10,000 lbs, the rig is a Group A combination: Class A CDL (49 CFR 383.5).

Over 26,000 lbs combined

IRP plates and an IFTA license for interstate runs.

Pickup-and-trailer car haulers work in the same weight bands as hot shot rigs — see the hot shot guide.

Coverage to check for car hauling

• Motor truck cargo — make sure the policy covers vehicles as a commodity, and compare the limit with your most valuable load: the total value of all the cars on the trailer at once.
• Loading and unloading — ask whether damage while loading, unloading or driving a customer’s car onto the trailer is covered, and by which policy.
• Primary auto liability — at least the federal minimum if you run your own authority.
• Physical damage — for the truck and the trailer; a lender with a lien will require it.

Under the Carmack Amendment an interstate carrier is liable for the actual loss or injury to the property it carries unless liability was limited to a declared or agreed value, if reasonable (49 U.S.C. 14706) — so read your bills of lading and contracts alongside the policy. More in the cargo insurance guide.

Quote checklist for car haulers

• USDOT and MC numbers (or your pending application).
• Truck and trailer VINs, years, GVWR and GCWR, trailer type and number of car positions.
• What you haul — new, used, auction or inoperable vehicles — and the highest total value on the trailer.
• Dealer, auction or broker contracts and the cargo limits they require.
• Drivers’ license class, experience and loss runs from recent insurers.