Is Shipping a Car Safe? How to Avoid the Pitfalls of the Shipping Industry

Valerie Raskovic

Jan 21, 2025

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Shipping a car can be a convenient and sometimes necessary solution, whether you're moving to a new city, buying a car from a different state, or transporting a vehicle for business purposes. However, the process can be fraught with pitfalls and it is up to you to ensure the safety and security of your vehicle. This article will guide you through the key considerations and steps to take to avoid the common pitfalls of the car shipping industry.

Understanding the Risks

Shipping a car involves entrusting a valuable asset to a third party, and while many shipping companies are reliable and professional, there are a lot of unscrupulous operators in the industry. The main issues are that the industry is price driven with a lot of brokers that often mascaraed as the actual shipper that outsource the job to the lowest bidder. This is where some research can help you avoid a lot of headaches entrusting your vehicle to the wrong company or worst a complete scammer.

Some of the main risks include:

1. Misrepresentation: The number one issue plaguing the auto shipping industry today is misrepresentation as there are a lot of brokers that act as basic dispatchers that mascaraed as actual shippers. These individuals are not necessarily involved in anything criminal however, the practice of bidding on shipping jobs posted on sites like Uship.com and then outsourcing them to the lowest bid shippers is a deceptive practice. In the end you really do not know who is shipping your vehicle. In many cases involving monitory claims these third-party agents disclaim all liability, and you are stuck dealing with the repercussions. We have heard many horror stories about these third-party brokers, since they only look at price, they typically do not vet the actual shippers so, things such as stolen vehicles, massive delays and losses are becoming more common. 
2. Damage During Transport: Regardless of if you have chosen a large company to transport your vehicle or a smaller operator, damage during transport can happen. A vehicle can be damaged during loading, transit, or unloading. This can range from minor scratches to more serious issues like dented panels or broken parts.
3. Delayed Delivery: Delays can occur due to various factors, including weather conditions, mechanical issues, or logistical problems. Delays may also occur with third-party brokers who often group vehicles being shipped to the same region. They might wait until they have enough cars to fill a truck before proceeding with shipment. While this helps brokers reduce costs with the shipping contractor, it typically results in significant delays.
4. Financial Scams: Some brokers or shippers may overcharge, charge hidden fees or even disappear with your money and your car. Although it is less likely for a reputable shipping company just to take your property it has happened. There are cases when transport trucks get burglarized, and vehicles are stolen. However, with a reputable shipping company they should be able to reimburse you through their insurance.
5. Lack of Insurance: Not all shipping companies provide comprehensive insurance coverage, leaving you responsible for any damages. It is absolutely vital to research the shipping company you are entrusting your vehicle to. Ask for a copy of their insurance policy and licenses.

Choosing the Right Shipping Company

1. Research Thoroughly: Start by researching reputable car shipping companies. Look for reviews, ratings, and testimonials from previous customers. Websites like the Better Business Bureau (BBB) and consumer review platforms can provide valuable insights. In many cases a simple google search of the company name can reveal a plethora of valuable information.
2. Avoid Broker Sites Solely Based on Price: While broker sites like UShip.com can offer a wide range of options, choosing the lowest bid is not always the best idea. Lower prices can often indicate less experienced or less reliable carriers. Always consider the reputation and track record of the shipping company, not just the price.
3. Verify Credentials: Ensure the shipping company is licensed and insured. Check for a valid Motor Carrier Identification Number (MC#) and verify it with the Department of Transportation (DOT). Be sure to always talk to the actual driver and whenever possible meet the driver in person to insure he works directly for the company which you have contracted to transport your vehicle.
4. Understand the Process: Understand the shipping process including how the company will handle loading, transit, and unloading. Ask about the type of equipment they use (open or enclosed trailers) and the level of care they provide. For classic, exotic or collector vehicles it is generally advised to pay a bit extra for an enclosed trailer as it is insulated from the harsh environment and it’s harder to burglarize.

Dealing with Brokers and Dispatchers

1. Identify Third Party Brokers and Dispatchers: Identify if the person you are dealing with is a broker or dispatcher. Brokers and dispatchers act as intermediaries, connecting you with the carrier. They may not have the same level of accountability and transparency as the carrier itself, so it is highly advised to avoid dealing with these third-party agents. Make sure you are talking to the company that is going to be handling your shipment.
2. Ask for Direct Contact: If possible, get direct contact information for the carrier and driver. This can help you verify the carrier's credentials and ensure they are a legitimate and reputable company. This will also allow you to get directly in contact with your driver to get status updates and hassle-free scheduling.
3. Check for Insurance: Ensure the carrier has comprehensive insurance coverage. Ask for a copy of their insurance certificate and verify it with the insurance provider if necessary. Be certain that the carrier’s insurance company will cover the total cost of your vehicle in the case of total loss during transport.

Pre-shipment Inspections

1. Pre-Shipment Inspection: Before shipping, inspect your car thoroughly. Take photos of any existing damage and note the condition of the vehicle. This will serve as evidence if any disputes arise.
2. Detailed Shipping agreement: Have a detailed shipping agreement that outlines the terms and conditions, including liability, insurance coverage and dispute resolution processes.
3. Track Your Shipment: Use tracking services provided by the shipping company to monitor the progress of your car. Regular updates can help you stay informed and take action if necessary.

During and After Shipment

1. During Shipment: Stay in touch with the shipping company and check the status regularly. If you notice any delays or issues, communicate with the carrier immediately. If needed ask to contact the driver directly.
2. Post-Shipment Inspection: Upon delivery, inspect your car again. Compare it with the photos and notes you took before shipping. If there is any damage, report it to the shipping company immediately and follow the dispute resolution process outlined in your agreement.

Final Tips

1. Stay Informed: Keep yourself informed about the shipping process and any updates. Being proactive can help you address issues before they become major problems.
2. Choose Reputable Options: If you have the flexibility, consider using a car carrier service that offers door-to-door service. This can reduce the risk of damage and delays.
3. Consider Insurance: Even if the shipping company provides insurance, consider purchasing additional insurance for peace of mind. Contact your vehicle insurance company and inquire about your coverage.

By taking these steps, you can significantly reduce the risks associated with car shipping and ensure a safe and secure transport for your valuable vehicle. Whether you are shipping a car for a short distance or a long haul, being informed and prepared can make the process smoother and more reliable.