The auto shipping industry in the U.S. is growing with a potential market size of $10.1 billion reported in 2024. However, with that, the risk of getting scammed is increasing as well. The Better Business Bureau has reported several cases where the scammers posed as a legitimate shipping company and took money from the car owners. That’s why you need to read this guide to avoid car shipping scams and safeguard your money and vehicle. We’ll also guide you on how to find a reliable auto transport service that won’t leave you high and dry.
How to Avoid Getting Scammed By Auto Transporters?
Don’t Be Lured In By Cheap Quotes
Companies often lure their customers with cheaper initial quotes and then, when you fall for it, they increase the final quote. So, the first rule of thumb to avoid such scams is not to fall for cheap quotes and always compare the value with the price. Also, keep in mind that if it’s too good to be true, it probably is!
You can use Easy Auto Ship’s free car shipping quote calculator to get prices in minutes to compare with other shippers and ensure you’re not getting scammed.
Check the Company’s Reputation and History
When moving your vehicle with an auto transport company, check its online reputation and history. Read reviews about the company on authority platforms like BBB and Trustpilot and ask the previous customers about their experience. Ask questions like:
- How was your overall experience?
- Did you receive your car on time and in same condition?
- Did the company honor its quote?
The more you dig into the company, the better.
Understand the Industry Standards
Before hiring an auto transport company, you must familiarize yourself with the industry standards. For instance, your potential carrier must be registered with the DOT and have a valid motor carrier number. Shipper’s website should list their MC and DOT numbers that you can verify on the FMCSA website.
Plus, they should have their liability insurance and proper licensing. Moreover, check if they’re offering different transport methods and services to facilitate your needs.
Familiarize Yourself with the Driver’s Legal Responsibilities
The transport company you’re moving your vehicle with should be registered with the FMCSA and their drivers must also have a valid Commercial Driver’s License (CDL), if required by the vehicle class. Plus, the driver should be able to offer you the proof of insurance and registration documents when asked.
Ask About Compensation
Accidents are not uncommon. In 2024, around 151,000 road accidents involving large trucks (shipping trucks included) occurred in the United States. That’s why, you must know beforehand how much you will be reimbursed if an accident occurs. Does your transport company offer full coverage or not? What are the deductibles? And what’s the claim process like?
Check the Company’s Website and Contact Details
A trusted shipping company will always have a responsive, professional-looking website with clear information and contact details. Also, see if they’ve given a physical location. And check if the link says ‘https’ in the URL.
Examine Payment Options
Be aware that you’re never supposed to pay full payment upfront when shipping your vehicle. And if some carrier company is demanding full payment in advance, that’s a red flag. Mostly, you’re only supposed to pay 25% of the total cost. Also, make sure you’re not sending money through wire transfer services like MoneyGram or Western Union, as you can never recover your money once sent through them.
Read the Agreement
Read the agreement carefully before you hand over your car to the shipping company. And in case you have any questions, do not hesitate to ask. Check these details specifically in the agreement:
- The pickup and delivery dates
- Insurance coverage
- Payment terms
How Do Most Car Shipping Scams Work Exactly?
More often than not, the scam companies pose as some legit auto shipping companies by using identity theft and trick unsuspecting victims. They’ll steal the logo of a legit auto shipping company, create an identical website, and use the same company info with minor changes in the URL, such as .net instead of .com, to deceive unsuspecting customers.
What Are The Different Auto Shipping Scams?
Pay close attention to these different tricks fraud auto shipping companies use, if you’re looking to avoid getting scammed:
Bait and Switch Scam
A very common scam that fraudulent companies use is luring car owners with incredibly low shipping rates. But once they fall for it and the car is en route to its destination, they suddenly increase the prices with some excuse.
Up-sell Auto Transport Scam
Some shipping companies agree on a reasonable shipping cost at first. But once they’ve picked up your vehicle, they increase the price suddenly, citing the need for additional insurance, extra handling tools, or expedited shipping. Many car owners fall for this scam.
Phishing Scam
Annually in the U.S., over 3.4 billion phishing emails are sent daily. It’s a prevalent cybersecurity scam in the U.S., and the auto transport industry is not exempt from it. A fraudulent auto shipping company will send you an email or a text asking you to click on a link or provide personal information for the sake of vehicle tracking or added benefits.
But when you click on the link, it will lead you to a fake website that will collect your personal information for either identity theft or financial fraud.
Insufficient Insurance Scam
Lastly, some auto transport companies claim to offer comprehensive insurance coverage. But when your vehicle suffers some damage, you find out that you either have no insurance coverage or it is insufficient, meaning the claim was a lie.
How Can I Recognize a Car Shipping Scam?
Before you hire a car shipping company, it’s advisable to do your research. Read reviews, check their licenses and certificates, see their local ratings, and also check if they have any of these car shipping red flags:
- Duplicate Web Content: It’s the most common car shipping scam where a deceptive car shipping company will duplicate a legitimate company’s website, copy their content, and just change the contact info to theirs. You need to be aware of this. Make sure to match the URL with the company’s name.
- Refusal to Provide Physical Address: Fake shipping companies usually do not have a physical address and they will only offer you a P.O. Box. That’s a big red flag to spot. Make sure they have their own brick and mortar location with a Google Maps pin.
- Premature Contract Signing: A scam shipping company will rush you into signing the contract before you get a chance to read it. Do not fall for it and make sure your contract is fully detailed with all the services outlined, the payment terms mentioned, and insurance details given.
- Request for Sensitive Information: Be aware that only a scam auto shipping company will ask for your Social Security information or your credit card details. A trusted provider will never ask for such sensitive information.
- Advanced Payments via Non-Retractable Services: If a company is asking for full payment in advance through non-retractable services like Western Union or MoneyGram, they’re a fraud. You will never be able to recover your money through these services. Instead, choose a company that lets you pay with a credit card.
- Too Good to Be True Offers: If a car shipping company is offering you rates lower than the market price, it’s a red flag. Quality services never sell for cheap.
- Unavailability of FMCSA Number: Legitimate shipping companies are licensed with the Federal Motor Carrier Safety Administration (FMCSA) and they have a unique FMCSA number. But if a company doesn’t have this number, they’re most probably a scam.
Some Key Questions to Ask:
| Questions to Ask Your Prospective Carrier | Response | Action |
|---|---|---|
| Do you charge ANY deposits? | Yes | AVOID |
| — | — | — |
| No | Good | |
| — | — | — |
| Is this price all-inclusive? Does it include fuel surcharges, tolls, taxes, everything? | Yes | Great |
| — | — | — |
| No | May I have a list of your fees? | |
| — | — | — |
| Yes | Receive the list and proceed. | |
| — | — | — |
| No | AVOID | |
| — | — | — |
| How long have you been in business? (Trust but verify with business licenses, BBB, or other reputable info) | 20+ years | BEST |
| — | — | — |
| 10+ years | Great | |
| — | — | — |
| 2 years or less | Be wary | |
| — | — | — |
| Tell me about your insurance. Will you send me your insurance certificate? | Standard coverage is $100,000 | Be wary of anything less |
| — | — | — |
| Zero/No/$0 deductible is best. | ||
| — | — | — |
| Won’t provide details/is vague/won’t provide a certificate | AVOID | |
| — | — | — |
What To Do During and After Car Transport is Done?
Here’s what you’re supposed to do after your car pickup and delivery:
Contacting the Driver
Do not shy away from contacting the driver when your car is in transit. In fact, trusted auto transporters will themselves ask you to contact the driver for real-time location updates and estimated arrival times. And that’s exactly what you should do when your car is en route to its destination.
Examining Your Car
Once your car is delivered, you must examine it for any possible damage during the transport. It’s a great idea to compare the condition of your car with the pictures and videos you’ve taken before the car pickup. And if you notice any scratches or damage either on the exterior or interior of the car, you should contact your car shipping company immediately, as they must have some insurance in place to cover these damages.
In fact, you can report your concerns or issues to the company even after the car transport is done. This will help the company do better in the future, and who knows, they’ll compensate you for things that were not included in the insurance before.
What Should I Do If I Fall For Auto Transport Fraud?
You should take the following steps if you fall for an auto transport fraud:
Report it to the Federal Trade Commission (FTC)
First, report your case online to the Federal Trade Commission (FTC) on their Complaint Assistant webpage. This will seriously help upcoming customers avoid getting scammed. Make sure to mention the specific details of the incident. For instance, the company’s name, the services you agreed upon, and the differences in the final delivery.
Contact the office of your state’s attorney general
Next, contact the office of your state’s attorney general. They usually have a consumer complaint division to handle such issues. There, they’ll help you understand your rights and what possible legal actions you can take.
For instance, let’s say you hired an auto shipping company to move your car from New York to California. But when the car arrived it had some serious damages not reported on the original agreement. In this case, your state’s attorney general’s office can help you understand what legal actions you can take against this.
Complain to the Better Business Bureau (BBB)
Finally, don’t forget to submit your report to the BBB, as this will not only alert others about the specific shipping company but you can also find a solution for your problem. For instance, let’s say you chose a legit auto shipping company that was accredited by the BBB, but now you have an issue with their service, and you report it to the BBB, there’s a high chance the company will respond, and you both find a common ground.
Parting Words:
Remember, no one is coming to save your investment; authorities act after a scam is done and you report it. So the best way to be safe is to be proactive. Ensure tight vetting of the car shipper, keep all relevant paperwork safe, and stay in touch with their team throughout the transit. If you want worry and stress free car shipping experience, you can also call Easy Auto Ship; we’re reliable and affordable auto shippers with over a decade of service and over 5,000 reviews.
