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Carrier's Liability for Loss or Damage

Carrier’s liability for loss or damage refers to the legal obligation of an auto transport company to take reasonable care of the vehicle while it is in their custody. If the vehicle is damaged or lost during transit due to negligence or mishandling by the carrier, the company may be held liable for repair or replacement costs.

This liability is separate from optional insurance coverage. While most reputable carriers are insured, the baseline liability often has monetary limits defined by industry regulations or the terms stated in the bill of lading.

At Interlane, we work exclusively with carriers that meet or exceed all federal and provincial licensing and insurance requirements. Our team ensures that all carriers have active cargo insurance policies to cover the value of vehicles being transported.

However, it’s important for customers to understand what is and isn’t covered. Carrier liability typically does not cover damage due to natural disasters, acts of God, or pre-existing conditions. That’s why we always recommend performing a thorough inspection of your vehicle before and after shipping, and documenting its condition with photos.

Should any issue arise during transport, Interlane will assist you through the claims process to ensure it is handled promptly and professionally.

In summary:

  • Defines a transport company’s legal responsibility for your vehicle during transit
  • Is distinct from optional or additional insurance policies
  • Typically includes limits based on carrier policies and regulations
  • Requires inspection and documentation before and after delivery
  • Interlane supports claim handling if damage occurs under the carrier’s liability
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