5 Red Flags in Car Shipping Companies
The auto transport industry is home to thousands of legitimate, hardworking carriers. Unfortunately, it also attracts some bad actors who prey on customers unfamiliar with the process. Knowing what to look for can save you from costly mistakes, delayed shipments, and outright scams.
Here are five red flags that should make you think twice before booking with any car shipping company.
1. Unusually Low Quotes
If a quote seems too good to be true, it almost certainly is. Some brokers and carriers use a tactic known as bait and switch, where they offer an extremely low price to win your booking, then increase the cost once your vehicle is loaded or demand more money before delivery.
Legitimate carriers have real operating costs, including fuel, insurance, driver pay, and equipment maintenance. A quote that undercuts the market by hundreds of dollars is a warning sign, not a bargain.
How to protect yourself: Get quotes from at least three to five carriers and compare them. If one quote is dramatically lower than the rest, ask questions before committing. A fair price falls within a reasonable range of the market average.
2. No FMCSA Registration or MC Number
Every legitimate auto transport carrier or broker operating in the United States must be registered with the Federal Motor Carrier Safety Administration (FMCSA). This registration comes with a unique MC (Motor Carrier) number that you can look up on the FMCSA website.
A company without an MC number, or one that refuses to provide it, is operating illegally. No registration means no federal oversight, no required insurance minimums, and no accountability.
How to verify: Ask for the company's MC number and look it up at the FMCSA's Safety and Fitness Electronic Records (SAFER) system. Check that their authority status is "Authorized" and that their insurance is current.
3. Demanding Large Upfront Deposits
It is normal for carriers and brokers to collect a deposit or partial payment when you book. However, a company that demands a large upfront payment, especially the full amount before pickup, is a major red flag.
Reputable carriers typically collect a small deposit at booking and the remaining balance upon delivery. This structure protects you and gives the carrier an incentive to complete the job properly.
What to watch for:
- Demands for full payment before the car is picked up
- Deposits that exceed 25% to 30% of the total quote
- Pressure to pay immediately with no written agreement
- Requests for payment via wire transfer, cryptocurrency, or gift cards
4. No Physical Address or Online Reviews
Legitimate businesses have a verifiable physical address and a track record you can research. If a company has no address listed on their website, no Google Business profile, and zero reviews on platforms like the Better Business Bureau, Transport Reviews, or Google, proceed with extreme caution.
A complete absence of any online footprint suggests the company is either brand new, operating under a different name to escape bad reviews, or not a real business at all.
How to check:
- Search the company name on Google and review sites
- Look for a physical address and verify it on Google Maps
- Check the Better Business Bureau for complaints
- Read reviews on multiple platforms, not just the company's own website
- Be cautious of companies with only five-star reviews and no negative feedback at all, as these can be fabricated
5. Refusing to Provide Insurance Information
Every licensed carrier is required to carry cargo insurance. A legitimate company will have no problem providing you with their insurance certificate, including the name of their insurer, policy number, and coverage limits.
If a company dodges your questions about insurance, gives vague answers, or tells you not to worry about it, walk away. Without verified insurance, you have no recourse if your vehicle is damaged during transport.
What to ask:
- Who is your insurance provider?
- What is your cargo insurance coverage limit?
- Can you provide a copy of your insurance certificate?
- Does your policy have a deductible that the customer is responsible for?
Stay Protected by Comparing Quotes
One of the best ways to avoid bad carriers is to compare multiple quotes and do your due diligence on each one. If you are new to car shipping, taking the time to vet carriers is especially important. Car Ship Deal helps you see rates from licensed, registered carriers so you can make an informed decision. Take the time to verify credentials, read reviews, and ask the right questions. A few minutes of research can save you from a costly and stressful experience.