Shipping a vehicle across Canada can be an efficient alternative to a long-distance drive, but many Canadians have one important question before booking transport: Do I need additional insurance to ship my car? Understanding how vehicle transport insurance works can help you make informed decisions and avoid surprises if something unexpected happens during transit.
At Hansen’s, we transport vehicles across Canada every day. Whether you're relocating, purchasing a vehicle from another province, or arranging seasonal transportation, knowing what protection is available can help you ship your vehicle with confidence.
The short answer is yes, but not necessarily additional insurance. Vehicle owners are not legally required to purchase a separate insurance policy before arranging vehicle transport. However, you should understand exactly what protection is available through your existing auto insurance and your transportation provider before your vehicle is loaded for shipment.
The goal is simple: know who is responsible if damage occurs during transportation and understand whether any coverage limits apply.
Some personal automobile insurance policies may provide limited protection while a vehicle is being transported. However, coverage can vary significantly between insurers and policy types.
Before shipping your vehicle, contact your insurance provider and ask:
• Does my policy remain active while my vehicle is in transit?
• What types of transportation-related damage are covered?
• Are there exclusions for commercial vehicle transport?
• Is there a maximum payout limit?
• Would additional coverage be recommended for high-value vehicles?
These questions can help determine whether your existing policy provides sufficient protection or whether supplemental coverage may be beneficial.
Hansen’s offers insurance coverage based on the type and value of the vehicle being transported.
For privately owned vehicles valued up to $50,000, customers may select coverage with either a $0 or $500 deductible. Vehicles belonging to dealers, leasing companies or auto auctions are fully insured up to $50,000 with a $0 deductible.
We also have our own claims policies and in-house claims department. This means that any claims related to new physical damages during transportation are processed through us. We will cover claims related to new physical damage during transportation while the vehicle is in our possession, excluding items not claimable per the terms and conditions of shipment.
For complete information about coverage, deductibles, documentation requirements and exclusions, please consult our Claims Policy page.
A deductible is the portion of a claim that the vehicle owner is responsible for paying before insurance coverage applies.
For example:
• Vehicle damage repair cost: $3,000
• Insurance deductible: $500
• Amount paid by customer: $500
• Amount paid by insurance: $2,500
If a customer selects a $0 deductible option, the insurance provider may cover the full eligible repair amount, subject to policy terms and limits.
Understanding your deductible before shipping helps you evaluate the level of protection that best fits your situation.
Vehicle transport insurance is intended to protect against new physical damage that occurs while the vehicle is being transported.
Examples of damage that may be covered include:
• Damage caused during loading or unloading
• Physical impact damage during transportation
• Damage resulting from carrier-related incidents
• Certain accidental transportation-related losses
Coverage is always subject to policy terms and conditions.
As with most insurance policies, there are exclusions that customers should understand before transport.
Examples commonly excluded from claims may include:
• Pre-existing damage
• Personal belongings left inside the vehicle
• Mechanical failures not caused by transportation
• Wear and tear
• Damage that is not properly documented
This is one reason vehicle condition inspections before and after transport are so important.
For a detailed explanation of inspections and documentation, we recommend reading our blog on vehicle condition reports explained.
Taking a few simple steps before transport can help protect your interests and ensure a smoother shipping experience.
Review both your personal policy and your transportation provider's coverage. Understanding who covers what can help prevent confusion later.
If you are shipping a luxury, collector, exotic, or specialty vehicle, additional insurance coverage may provide extra peace of mind beyond standard coverage limits.
Take clear photographs of your vehicle from multiple angles before pickup.
These images create a documented record of the vehicle's condition and can be valuable if questions arise after delivery.
Pre-shipping and post-shipping inspections help verify the vehicle's condition throughout the transportation process. Detailed condition reports protect both the vehicle owner and the carrier.
Insurance is an important part of any vehicle transportation decision. While additional coverage may not always be necessary, understanding your existing protection, deductible options, coverage limits, and potential exclusions can help ensure your vehicle is properly protected from pickup through delivery.
At Hansen’s, we believe informed customers make better transportation decisions. Our team is happy to answer questions about shipping insurance, claims procedures, and coverage options so you can move your vehicle with confidence.
Contact Hansen’s today to request a quote and learn more about our trusted vehicle shipping services across Canada.
.png)
.png)
.png)