The short answer
Before approving your student's car shipment, verify the carrier is FMCSA-licensed, confirm no deposit is required upfront, and understand that carrier cargo insurance is separate from your personal auto policy. Make sure current registration and insurance documents will be in the vehicle, and consider the optional $99 coverage add-on for $200,000 in protection if the vehicle is newer or higher-value.
- FMCSA licensing can be verified through the agency's public SAFER system using the carrier's USDOT number.
- A request for an upfront deposit before pickup is the most common red flag in the auto transport industry.
- Carrier cargo insurance covers the vehicle in transit; it is not a replacement for the personal auto policy that should remain active throughout.
- Current registration and proof of insurance should be accessible in the vehicle, not buried under old paperwork in the glovebox.
- Optional cargo coverage of $200,000 for $99 per vehicle is available on top of the standard carrier policy.
Step 1: Verify FMCSA licensing and safety records
Every legitimate motor carrier operating across state lines is required to hold active FMCSA operating authority and a USDOT number. Before your student's car is loaded, you can look up the assigned carrier's USDOT number on the FMCSA's public SAFER system to confirm active authority and review basic safety history. This takes a few minutes and is the single most concrete verification step available to a parent who isn't physically present at pickup.
Step 2: Treat an upfront deposit as a red flag
- Legitimate transport pricing doesn't require money before a carrier is even assigned to your shipment.
- Pay At Pickup structures charge $0 at booking and the full amount only when the carrier physically loads the vehicle.
- A company asking for a deposit "to hold your spot" is a pattern associated with bait-and-switch pricing and no-show carriers.
- Nothing further should be owed at delivery — if a driver asks for cash at drop-off, that's outside a legitimate transaction.
Step 3: Understand the insurance layers
Two separate insurance policies are relevant to a shipped vehicle. The carrier's cargo insurance covers damage that happens while the vehicle is on their trailer, during loading, transit, and unloading. Your own personal auto policy should remain active throughout, since it covers scenarios cargo insurance doesn't, and some claims may require both to be verified. If you want additional protection beyond the standard cargo policy, a $99 per-vehicle add-on provides $200,000 in dedicated coverage.
Step 4: Confirm the paperwork inside the car
- Current vehicle registration, easy to find, not buried under expired documents.
- Current proof of insurance card.
- A spare key, kept by the driver for the duration of transit.
- Emergency contact information for both the student and a parent, in case the carrier needs to reach someone during transit.
Step 5: Walk through the pickup and delivery process together
Before pickup day, talk your student through what to expect: a driver will call ahead, perform a walk-around inspection, mark existing damage on a Bill of Lading, and ask for a signature before loading the vehicle. Encourage your student not to sign until the damage diagram matches what they can see on the car. This document becomes the baseline for any damage claim, so a rushed signature at pickup can complicate a legitimate claim later.
Frequently asked questions
- How do I verify a carrier's FMCSA licensing?
- Look up the carrier's USDOT number in the FMCSA's public SAFER system, which shows active operating authority and basic safety history. This is available free to the public and takes just a few minutes to check.
- Should I be worried if a company asks for a deposit before pickup?
- Yes, that's the most common red flag in the industry. Legitimate pricing structures like Pay At Pickup charge $0 at booking, with the full amount only charged once the carrier physically loads the vehicle.
- Is my student's car covered by the carrier's insurance or mine?
- Both matter. The carrier's cargo insurance covers the vehicle during transit, but your personal auto policy should stay active throughout, since some scenarios and claims may involve both policies.
- Is extra insurance worth it for a newer student vehicle?
- It's worth considering for a newer or higher-value car. For $99 per vehicle, you can add $200,000 in dedicated coverage on top of the carrier's standard cargo policy.