Whenever you see a truck hauling cars, your first thought is probably: what new and exciting vehicles are on it. Many would like to be in the business considering it very easy and satisfying as you make people happy delivering modern cars.
No one except the insurance agent is worried about how risky the auto hauling business can be. And some of the most severe types of cargo claims, from a cost perspective, in auto transporting could be:
- Fires. A big rig generates much heat when braking and brake dust can catch fire. Running on a flat tire also can cause enough friction to ignite the rubber. Either way, the result can be damage not only to the tractor but the entire cargo, in or on the trailer. For that reason, some motor carriers equip their semis with high-end fire suppression systems.
- Rollovers. A truck doesn’t need to be moving very fast to be at risk of rollover, whether going around a bend or just slightly off a paved surface. The best-case scenario for cargo in a rollover is partial damage, but that can mean big trouble if the manufacturer declares a constructive total loss. That may be surprising, but very few cargo policies cover constructive total loss, and motor carriers may have to pay the difference out of their pocket.
- Accidents involving other vehicles. With so much traffic on the road, it’s only a matter of time before an auto hauler has a close encounter. In 2016, auto transporters were involved in tow-away crashes at the rate of almost four a day. Not every collision requires a tow, of course, so the actual accident rate is even higher. A relatively common claim is damage to the vehicle at the back of the transporter, closest to the road. These cars hang off a trailer, and there are many claims of the rear end damaged by another vehicle without truck`s driver awareness.
- Damage loading or unloading cars. It is often seen that an auto transporter parked in the center lane of a busy road as it loads or unloads vehicles. And sometimes the cargo gets damaged.
For more information on auto transporting, cargo and other trucking coverage, please contact us at 7732299891
The post is based on the original text by Tokyo Inland Marine insurance company https://tmamerica.com/insights/blog/Inland-Marine-Auto-transport.aspx