Auto transporters face specific risks that most trucking insurance policies don’t cover. Our Protection for Auto Transporters and Haulers (PATH) Program provides coverage for those unique exposures. Bill Fralic Insurance Services is the nation’s leader in providing superior insurance coverage and competitive pricing for the auto hauling industry.
As an auto transporter, day-to-day operations expose your company to unique risks that traditional insurance policies do not cover, leaving the auto hauler exposed to huge financial risk. The PATH Program provides comprehensive coverage for these risks.
DIV is the actual or perceived loss in market value or resale value that results from a direct or accidental loss to an auto being transported. For example, your driver is unloading a new car worth $40,000, hits a pole, and does $5,000 damage to the car. Once the car is repaired, the dealer may only be able to sell the car for $30,000 due to the damage. Most policy coverage is only going to pay $5,000 (less the deductible) to fix the car. The dealer will seek the remaining $10,000 from the auto transporter, which the auto transporter pays out of pocket. With the PATH Program, the insurance company will pay the dealer up to $8,000. Most policies consider this “consequential damage” and do not pay any of the diminished value.
CTL means a new auto that is damaged while being transported can only be repaired to a safe driving condition, but not new car condition. For example, a driver damages the roof of a new Nissan. Although it would only cost $5,000 to repair the roof, Nissan crushes the car due to liability concerns. Most insurers are only going to pay $5,000 for this claim with the auto transporter paying the difference out of pocket. Under the PATH Program, the insurance company will pay the full dealer cost of the car and allow the shipper (your customer) to determine the classification of damages, not the insurance company. The PATH Program protects your relationship with your customer, offering you a distinct advantage over your competitors!
If a load is too high and damage occurs while passing under a bridge or structure spanning across the roadway overhead, the PATH Program will cover this type of loss. Many policies do not include even this basic coverage.
When a tractor/trailer is left unattended and a theft occurs, many policies have exclusions to avoid covering this type of loss. The PATH Program covers this loss, providing the tractor is securely locked with the keys removed and the windows fully closed. Close attention must be given to the details of any other cargo policy to verify coverage against this type of loss. The size of the potential financial risk in this scenario can be devastating.
Many auto auction facilities require coverage after an auto transporter enters the property auction while physically driving an auction vehicle to or from an auto hauler. The PATH Program provides this coverage.
This will provide coverage for a car that is driven to its destination point from loading/unloading. Auto transport drivers are often required to unload a car and drive it across the street or down the road to the dealership. Some insurers limit coverage to within 50 feet of the transporter. The PATH Program can extend this coverage up to ten miles.