Cargo insurance is the carrier's coverage for the freight on its truck, which in auto transport means the vehicles being hauled. It is separate from the carrier's liability insurance, which covers injury and property damage to others on the road.
A detail many shippers miss: FMCSA's federal insurance filings for general property carriers cover public liability, not cargo. The agency's filing chart lists a cargo requirement only for household goods carriers and household goods freight forwarders. So cargo limits for car haulers come from each carrier's own policy and from the contract terms with the shipper or broker, not from one federal minimum. Limits, deductibles and exclusions can differ a lot between a small single-car hauler and a large fleet.
For dealers and buyers, the practical steps are to ask for a certificate of insurance that shows the cargo limit, compare that limit to the vehicle's value, and record every existing mark on the bill of lading at pickup. A claim usually depends on showing the damage was not there before loading. For high-value vehicles, it may be worth choosing enclosed transport or confirming that the assigned carrier's limit is high enough.
AutoTransportVehicle.com does not insure shipments. Cargo coverage comes from the motor carrier that hauls the vehicle.