Claims and the Bill of Lading
Damage claims in auto transport are rare — typically under 2% of shipments — but when they happen, the Bill of Lading (BOL) is the single most important document. The BOL is the inspection record at pickup and delivery, signed by both driver and customer at both ends. Any damage not noted on the delivery BOL before signing is effectively waived. Knowing the claim protocol in advance is the difference between a quick resolution and a months-long dispute.
Why the BOL controls the claim
The Bill of Lading records the vehicle's condition at pickup (signed by both parties) and at delivery (also signed by both parties). Any damage that appears at delivery but is not noted on the delivery BOL is presumed to have existed at pickup — meaning the customer signed acknowledging it. This is why every inspection at delivery must happen before signing the BOL.
The claim sequence
- At delivery: note every new damage point on the BOL. Photo-document each. Do not sign 'undamaged.'
- Within 24 hours: contact broker with photos and BOL copy. File initial claim notification.
- Within 7 days: file formal claim with the carrier's cargo insurance (broker assists).
- Within 30 days: insurance investigation, including photo/document review and possibly an adjuster inspection.
- Within 60–120 days: claim resolution, repair authorization, and payment.
Carrier insurance vs broker insurance
Cargo damage in transit is covered by the carrier's cargo insurance (typically $250K–$1M per vehicle on enclosed; $100K–$250K on standard open). Broker errors (misquoting, dispatch failures, wrong vehicle picked up) are covered by the broker's surety bond and errors-and-omissions insurance. Most damage claims route through the carrier's policy.
What gets covered, what doesn't
Covered: cosmetic damage, mechanical damage clearly caused in transit, missing parts (mirrors, antennas) recorded on the BOL. Not covered: 'acts of God' like hurricanes, hail outside of carrier negligence, pre-existing damage (per the pickup BOL), and damage to personal items left in the vehicle (which should have been removed at pickup).
How Premium Protection layers on top
Some brokers offer a Premium Protection product that adds a layer above the carrier's cargo insurance. It typically expedites claim processing, may cover the deductible, and provides white-glove claim assistance. For standard shipments the carrier's insurance is sufficient; for high-value vehicles Premium Protection is worth the modest premium.
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Claims and the Bill of Lading — FAQs
What is the Bill of Lading in auto transport?+
The legal document recording the vehicle's condition at pickup and delivery. Signed by both driver and customer at both ends. It's the single most important document in any damage claim.
What should I do if my car is damaged in shipping?+
Note every new damage point on the delivery BOL before signing. Photo-document each. Do not sign 'undamaged.' Contact the broker within 24 hours with photos and BOL copy. File formal claim within 7 days.
Who pays for damage during car shipping?+
The carrier's cargo insurance (typically $250K–$1M per vehicle on enclosed, $100K–$250K on open). The carrier's insurance pays, not the broker's, for in-transit damage.
How long do car shipping damage claims take?+
Typical resolution: 60–120 days from filing. Faster if photo documentation is clear, BOL annotations are complete, and damage is unambiguous. Slower if liability or pre-existing condition is contested.
What does Premium Protection Car Shipping add?+
An additional layer above the carrier's cargo insurance. Typically expedites claim processing, may cover the deductible, and provides white-glove claim assistance. Worth the modest premium for high-value vehicles.
More from Carrier Operations
What actually happens at pickup and delivery — inspection, the Bill of Lading, payment timing, and the protocols that protect both customer and carrier.
How a shipment moves from booking to assigned carrier — load board posting, carrier bids, dispatch acceptance, and the operational rhythm behind every shipment.
How the specific carrier for your shipment gets picked — vetting, dispatch math, and what 'assigned' actually means.
The cargo insurance every FMCSA-licensed carrier must hold — limits, what's covered, what's excluded, and how to verify before booking.
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