How to avoid Car Shipping Scams

Shipping your car should be a seamless experience, but unfortunately, car shipping scams are common in the industry. Fraudulent carriers and shady practices can leave you out of pocket, with damaged vehicles and a lot of stress

In this guide, we will explain what car shipping scams are, how to spot the warning signs, and what you can do to choose a reliable carrier. By following these tips, you can protect yourself and ship your car with peace of mind.

What are Car Shipping Scams?

Car shipping scams come in many forms. It is important to understand how these scams work so you can avoid them.

Car shipping scams come in many forms, from companies that vanish after taking your deposit to carriers that fail to deliver your vehicle safely. Common scams include:

• Bogus Carriers: Fake companies with professional-looking websites that disappear once you’ve paid.
• Hidden Fees: Initial quotes may be low, but once your car is on its way, you find out about exorbitant additional charges.
• Lack of Insurance or Licensing: Some carriers operate without proper licensing or insurance, leaving you vulnerable if something goes wrong.
• Overcharging or Bait-and-Switch Tactics: Promising one price only to switch to a much higher cost when your car is in transit.

Understanding these scams is the first step to protecting yourself. Knowledge is power, and knowing what to look for can save you time, money, and heartache.

Common Car Shipping Scams

1. The Bait-and-Switch Pricing Scam

How it works: A car shipping company provides an unbelievably low quote to attract customers. Once the car is picked up or in transit, they claim there were “unforeseen costs” and demand a significantly higher payment.

How to avoid it:

• Compare quotes from multiple reputable companies.
• Read customer reviews and ratings.
• Avoid offers that seem too good to be true.
• Ask if the price is guaranteed and get it in writing.

2. Deposit Fraud Scam

How it works: A fraudulent shipping company asks for a large upfront deposit but never picks up the vehicle. After receiving payment, they stop responding.

How to avoid it:

• Choose a company that only requires a deposit after a contract is signed.
• Pay via credit card for transaction protection.
• Look for a company with positive reviews on Trustpilot, Google Reviews, and BBB.

3. Fake Car Shipping Companies

How it works: Scammers create fake websites with stolen images and fake reviews. Once a customer books their service, they disappear with the money.

How to avoid it:

• Verify the company’s USDOT number through the FMCSA website.
• Check the company’s physical address and contact information.
• Look for genuine customer feedback on independent review sites.

4. The Hostage Scam (Holding Your Car for Ransom)

How it works: A transporter picks up your car but refuses to deliver it unless you pay extra hidden fees.

How to avoid it:

• Ensure you have a signed contract with clearly stated fees.
• Work with a well-reviewed, licensed transport company.
• If a transporter holds your car, report them to FMCSA and local authorities.

5. Insurance Scam

How it works: Some companies claim they provide insurance but lack proper coverage. If damage occurs during transport, customers find out too late that they’re not covered.

How to avoid it:

• Request a copy of the carrier’s insurance policy.
• Verify coverage with the insurer.
• Take before-and-after pictures of your car.

Red Flags to Watch Out For

1. Unrealistically Low Prices – If a quote is far lower than competitors, it’s likely a scam.
2. Vague or No Written Contract – Always get everything in writing.
3. Poor Online Presence – No website, no reviews, or suspicious-looking reviews.
4. Demand for Full Payment Upfront – Reputable companies only require a partial deposit.
5. No Physical Address or Contact Info – Legitimate companies have verifiable addresses and phone numbers.
6. Pressure Tactics – Scammers rush you to make quick decisions.

How to Choose avoid Car Shipping Scams

1. Verify Licensing & Registration

• Check if the company has a USDOT number and is registered with the FMCSA (Federal Motor Carrier Safety Administration).
• Use FMCSA’s Company Snapshot tool to verify legitimacy.

2. Read Customer Reviews

• Search for the company on BBB (Better Business Bureau), Google Reviews, and Trustpilot.
• Look for consistent reviews over time, not just a few recent ones.

3. Get a Written Contract

• Ensure all details (pricing, delivery timeline, insurance coverage, cancellation policy) are in writing.
• Avoid verbal agreements.

4. Choose Reputable Payment Methods

• Avoid wire transfers or prepaid cards.
• Use credit cards or escrow services for extra protection.

Safe Car Shipping Tips

• Book in advance to avoid last-minute price hikes.
• Take photos of your car before and after shipping.
• Remove personal belongings to prevent theft.
• Stay in communication with the transport company for updates.

Conclusion

Car shipping scams can turn what should be a straightforward process into a stressful and costly experience. However, by staying informed and knowing what red flags to watch for, you can avoid falling victim to fraud. Always verify licensing, read customer reviews, and insist on a written contract before making any payments.

Choosing a reputable car shipping company requires diligence, but taking the time to research and verify a company’s credentials will ensure a smooth and secure transport. By following these tips, you can confidently ship your vehicle, knowing it’s in safe hands. Stay cautious, ask the right questions, and protect yourself from scams.