When you ship a car but wonder what kind of protection you can arrange for it, know that there’s a classic protection option. Transporters may be often referred to as “bonded” and “insured”. Although these two types of coverage sound similar, they are two distinct forms of protection that can greatly impact your car shipping experience. The difference between bonded and insured transporters won’t have much of a difference if you’re not familiar with the terms yourself. In this guide, we will take you through the difference between the two along with why it’s crucial to understand both when choosing the company to ship with.
What does it mean to be bonded?
A bonded auto transporter is a company that has a surety bond definition. The transporter’s bond is a financial guarantee by a third party whose purpose is to ensure the transporter complies with both their legal and contractual obligations. The bond can be utilized to compensate affected customers in case the company defaults on the above-mentioned commitments.
In the auto transport industry, the bond protects consumers. If, for instance, a transport firm damages your car or fails to deliver it on time and you are unable to resolve the matter through other means, you shall be compensated with the surety bond. A bond carrier must have this bond in place to operate legally and provide an extra layer of protection for consumers.
Essential Traits of a Bonded Transporter
- A bonded transporter will comply with all state and federal rules and regulations.
- A bond protects consumers in case the company is unable to fulfill its responsibilities.
- A bonded transporter is a licensed individual or organization throughout the United States, chiefly through the Federal Motor Carrier Safety Administration (FMCSA).
What Does Insured Refer to in Auto Transport?
In comparison, insurance in terms of car shipping refers to cover for your vehicle during the time taken for delivery to the said destination. Unlike bonding, which guarantees a payout if the contract is breached, insurance only covers the damage to the actual vehicle while in transit.
A covered transporter carries protection for your vehicle, related to an accident of the vehicle or vandalism, etc., when sending your car. Most reliable car shipping companies will offer some sort of insurance but the details vary a lot.
Transporters Insurance – Key Features of Transporters Insurance.
Insurance protects vehicles against damage whilst in transit.
Having your car insured while you’re driving it (especially well-known or valuable classic models), can offer you peace of mind.
Coverage is different based on the type of service (open versus enclosed transport), the vehicle’s value, and the shipping company.
Bonded and Insured Meaning Difference
In essence, the primary distinction between bonded and insured transporters, or carriers, is in the type of coverage they offer.
kind of guards
Bonded transporters provide a financial safeguard to protect you against the failure of the transport company regarding the fulfilment of legal liabilities.
Insured transporters protect your vehicle against physical damage or loss during transport.
Extent of Coverage
A surety bond will cover violations of a law or contract (e.g. failure to deliver, fraud, etc.).
Insurance will cover for accidents, theft or any other physical damage that happens due to the transport process.
Transporters Needed
Most auto transport businesses, especially those that are national or international in scope, must be bonded in order to operate.
It is not compulsory but advised to take insurance Maximum Limit:15 Words
Shielding Consumers
Consumers are protected from fraud or failure to perform services agreed upon with bonded transporters.
An insured transporter provides coverage for the vehicle against damages and loss while shipping.
The Importance of Being Insured and Bonded
A transporter may be bonded or insured. It is a good idea to select a company that is both. The reason is.
Having bonding and insurance means you are doubly protected. Peace of mind. Insurance safeguards the vehicle from any mishap as a result of damage in transit.
The safety of your vehicle. Although you can fall back on insurance for damages, the bond is a guarantee that the shipping company has up to the service provider’s standards and is liable to provide the services.
A bond is a kind of legal and financial safeguard. In case the company refuses to fulfill its obligation, then the bond comes into force. At the same time, insurance will cover any physical damage to the vehicle that takes place. It provides you with legal and financial protection.
How to Pick a Transporter who is Bonded and Insured
Whenever you want to hire an auto transporter, you must make sure that they are bonded and insured. Here are some tips to help you do exactly that.
Check the Bonding: Request a bond number and check with the proper licensing authority, such as FMCSA.
Ask the transporter about their insurance policy. Specifically, ask about the type and level of coverage, the exclusions and whether this coverage is adequate for the value of your car. Make sure it covers theft, withdrawal and damage in transit.
To determine whether that company has ever neglected its duties and failed to keep vehicles safe, check out the customer reviews. Choose a firm that has a proven track record when it comes to customer service.
Request quotation from multiple suppliers and select the best offer. Ask companies for bonding and insurance and get a quote from multiple ones. Examining these quotes will help you select the most reliable and cost-effective transporter for your needs.
Conclusion
It is important to know the difference between bonded and insured transporters when choosing to ship a car. Bonding protects you if the transporter does not fulfill their obligations while insurance protects your vehicle from being damaged or stolen during transportation. The best way to ensure the safest and most convenient experience is to select the transporter providing bonding and insurance.
At Car Shipping Source our vehicle transport is bonded, insured and reliable. It also follows all legal and safety requirements. Get in touch with us today for a free, no-obligation quote, and enjoy the peace of mind that your vehicle is safe!
