This is, once again, difficult to predict with any degree of certainty. The average monthly insurance rate for a car hauler is between between
What insurance do I need for car hauling?
Local legislation and/or bid and contract criteria will determine the insurance requirements for automobile haulers. To even bid on a contract, small transporters typically need at least $100,000 in coverage. Large haulers will want extra coverage, starting at $200,000 to $500,000.
Depending on the insurer, a wide range of coverage options are available, however the most critical coverages for car transporters include:
Liability
Auto liability is a coverage that is needed in all 50 states. It doesn’t matter if you’re driving a personal or commercial vehicle; you’ll still require liability insurance. However, you can choose how much coverage you want as long as you fulfill the state’s minimal standards.
With that said, if you’re transporting cars, you’ll want to go above and above the basic liability requirements. When automobiles are used commercially, it’s especially vital to have greater coverage because business auto policies pay a disproportionate share of liability claims.
Professional auto transporters must carry at least $1 million in liability insurance, according to the FMCSA.
Professional automobile movers must have commercial liability insurance. If you don’t have the correct insurance, a tiny blunder might cost you a lot of money. Your liability coverage would help cover the expense of legal procedures if a customer or third party filed a lawsuit against your firm for property damage or injuries.
Collision/Comprehensive
Because the value of your vehicles and trailers is so high, having proper collision and comprehensive coverage is critical. Collision and comprehensive insurance can protect you if your own vehicles are damaged.
It’s vital to know that your car hauler is not covered by liability insurance. It mostly protects other people’s automobiles and property. Collision and comprehensive coverage will give the necessary protection for your vehicle mover.
Remember that the insurance will only pay the cash worth of the automobile less your deductible, so choose an appropriate level of coverage.
Cargo Coverage
Cargo coverage is another non-negotiable item when it comes to insurance. Flying debris, weather, and even seeping fluids from the vehicles above can all cause harm to vehicles being hauled down a highway in an open-air trailer. Minor dents and scrapes are frequent in vehicles that are transported. You may have to pay for these repairs out of pocket if you don’t have cargo insurance.
Even if you’re only transporting a few cars at a time, your cargo could be worth $100,000 or more. Paying for damages out of pocket could put you out of business.
Cargo coverage protects the vehicles you’re transporting from damage while they’re in transit or in storage.
On-Hook
You’ll require on-hook coverage if you’re towing a vehicle. Collision, vandalism, theft, fire, or explosion damage to the cars you’re towing will be covered by On-hook.
Aim for at least $100,000 in insurance coverage. Some insurers provide on-hook coverage of up to $1 million.
Do car haulers need insurance?
Flying items, leaking fluids from the cars above, and even weather damage might endanger a group of exposed cars moving down the highway. And, because a scratch or dent might be expensive to fix, you’ll want to make sure you won’t have to pay for the damage yourself.
Carrier’s cargo insurance is one of the most crucial coverages for an auto hauler since it helps cover the expense of lost or damaged third-party cargo while it’s in your hands.
How much does it cost to start a car hauling business?
Your equipment accounts for the majority of your initial costs. For $20,000 to $30,000, you might be able to find a nice deal on a secondhand trailer.
If you don’t already have a CDL, you may expect to pay roughly $100 for one. You should also consider the cost of insurance.
Finally, depending on your state and the sort of business, the cost of registering your new business ranges from $100 to $200.
Do car Haulers make good money?
This report on a Pennsylvania-based carrier provides an updated view of auto transporting from the perspective of an owner-operator in a Class 3 hotshot truck.
Auto hauling is one of the most challenging divisions of the trucking industry to break into and understand, but it can also be one of the most financially rewarding.
“A lot of individuals will see the money in moving automobiles, but they don’t have what it takes,” Jim Lepke, owner of Fortun Transportation in Wisconsin, explains. “It takes a lot of practice, and I believe I was too young and headstrong to give up when I first started. Because we’ve been doing it for so long, we’re now one of the best at it.”
Purchasing a trailer and learning to load automobiles are two of the immediate hurdles.
“In 2013, we paid between $265,000 and $270,000 for a 2013 Peterbilt and a 2013 Cottrell trailer,” says Dana Miller, president of Young’s Transport in Fort Myers, Fla. The 10-car trailer cost $97,400 out of that total. It’s not uncommon for a new nine- or ten-car trailer to cost more than $100,000.
Another challenge for drivers coming into vehicle hauling today, according to Bill Schroeder, general manager of the Auto Haulers Association of America, is accumulating experience. Before transporting automobiles, most insurance companies require drivers to have at least two years of over-the-road experience and a commercial driver’s license.
One way to learn the business is through on-the-job training. “Unless they work for a larger company before having their own unit, small owner-operators tend to do it that way,” Schroeder explains.
In more prevalent uses, car carriers’ average wages often exceed those of owner-operators. Specialists at the top earn well into the six figures, transporting one or two costly cars in an enclosed trailer.
According to Bill Schroeder of the Auto Haulers Association of America, a driver with good experience and skills who has a contract to haul new cars for a car manufacturer will likely earn between $75,000 and $110,000 per year.
“There used to be a bigger difference in pay between a box driver and a vehicle haul driver than there is now,” Schroeder notes. “The gap has tightened slightly, exacerbating the shortfall in the car carrying industry.”
Jim Lepke of Fortun Transportation says he’s happy working hard nine months of the year and clearing $75,000 through the internet brokerage Central Dispatch.
“He says, “It’s all about money management.” “Because people aren’t moving as many cars that time of year, I can take a lot of time off, usually from June through August.”
For a 10-day round journey, Lepke normally travels from Wisconsin to Florida, then back to Detroit. “I’m looking for a full 10-car load when I’m putting together a load on Central Dispatch; otherwise, it’s not worth my time,” he explains. “I used to come home empty, but thanks to Central Dispatch, I’ve been able to find automobiles traveling back to Detroit from Florida, so I’m getting paid both ways.”
Lepke left La Crosse, Wisconsin, and picked up eight automobiles in Milwaukee to transport to south Florida on a recent excursion. He then went on to pick up eight more automobiles and drive them to Detroit. He earned $11,500, or $4 per mile, despite making 33 stops.
Dean Zervas, who drives a hot shot and hauls autos in a two-car enclosed trailer, specializes in antique and rare cars and earns between $125,000 and $150,000 per year.
“I transport playthings for wealthy men,” Zervas explains. “I have a car background, a nice customer presentation with no straps touching the cars, and I’m currently doing about 80% repeat business. My customers are aware that they will receive high-quality service from me.”
Carriers will receive 40 to 50 cents per mile on long routes, and closer to $1 per mile on shorter runs, according to Frank Cuomo, CEO of Bears Transport brokerage. The broker charges between $100 and $300 every automobile.
When doing a full load for a dealership, Young’s Transport costs $500 per car. Hauling a car for a private owner can cost closer to $900.
“We don’t do a lot of full-load activities,” adds Young’s Jeannie Phillips. “Private shippers have the ability to pay more for our services, and they will.”
Another option is to enroll in a training program, either through a firm or a school. The AutoHauler Training Institute of Orange Park, Fla., is a school that AHAA co-brands.
The fact that the trailers must match up with the trucks, unlike most other uses in the sector, adds up the cost of automobile hauling equipment. Young’s employs Cottrell trailers, thus its tractors are equipped with Cottrell head racks to maintain appropriate alignment.
“We can’t just rent another vehicle to complete the trip if one goes down,” explains Jeannie Phillips, Young’s transportation specialist. “The newer trucks with the emissions equipment are more likely to end up in the repair shop. This translates to a loss of revenue as well as a decrease in repeat business.”
“In 1989, I met a guy in the parking lot of a Chicago auction who was driving an eight-car trailer,” Lepke recalls. “I acquired my own a few months later. After three years, I was driving three trucks. Learning how to accomplish this cost me a million dollars. During my first few years, I made a lot of blunders.”
Loading an auto carrying trailer, according to Lepke, is similar to putting together a jigsaw puzzle. “You have to know how much space you have and the size of the automobiles as you put your load together so you know where to put them on the trailer and whether or not you can move them at all,” he explains. “Every inch counts, but when a car costs $700 to $800, you have to do what you have to do.”
Pricing and service quality, according to Phillips, might make the business more difficult. “Our competition isn’t truly carrier vs carrier; instead, we have a problem with some brokers, not all,” she explains. “Many Internet brokers would undercut pricing simply to obtain the job, then hand the cargo off to anyone with a vehicle transporter.”
According to Phillips, many brokers claim to be bonded and insured, but they aren’t always insured because they aren’t a carrier. “We cooperate with good brokers as much as we can since they offer acceptable prices to carriers,” she explains. “However, due of the lowball figures, those appear to be falling by the wayside.”
There are a lot of options, according to Frank Cuomo, CEO of Bears Transport, a brokerage firm in Lake Forest, Ill “There are a lot of unethical brokers vying for the same business.”
“Cuomo explains, “We strive to educate our customers in terms of researching individuals up and choosing a reliable broker or carrier.” “It’s critical to be aware of who you’re speaking with. People will believe a quote from a trucking firm to transfer their vehicle is from a trucking company, but it is actually from a broker in his living room.”
“I load a lot of individuals who go to Florida during the winter and then return in the spring,” adds Lepke. “I’m one of the few persons who delivers to people’s homes and unloads using a tractor-trailer. When you perform a fantastic job for someone, they tend to call you back the following year.”
Young’s receives “Because our corporate drivers and the owner-operators we use know what they’re doing, we get repeat business,” Phillips says. “Because a dealership won’t pay what we’re asking for a full load of automobiles, the majority of our business comes from private owners.”
Cuomo believes that a broker’s reputation is crucial. “We receive a mix of dealerships and private shippers, as well as a lot of athletes, snowbirds, and eBay auto buyers,” he says.
Car transporters must keep track of their cargo insurance since they occasionally receive high-value loads. When a load’s value is too high, Lepke and Dean Zervas, who hauls high-end autos, seek a rider from their insurance providers.
To protect the cars, most carriers and owner-operators carry $1 million in liability insurance and $250,000 in cargo insurance.
While it is debatable if there is a driver shortage in the trucking business as a whole, Schroeder believes there is one in the auto hauling market.
“He claims that rates are currently higher than they were before the recession, partly due to a driver scarcity. “Because automobile hauling is a more physically demanding profession than other areas of the industry, it appears to be worse.”
Do I need a dually to haul cars?
A dually vehicle, commonly known as a one-ton pick-up, is capable of towing enormous, heavy trailers weighing more than 20,000 pounds. After all, the twin rear wheel vehicle was created to do just that. It provides a wider stance for the truck, which improves stability when pulling a trailer, especially on windy routes. It also boosts the maximum payload and towing capacities, making it ideal for larger, heavier loads like 5th wheels.
Dually trucks are best for delivering payloads of 7,000 pounds or less. This is most suited to consumer products transportation (such as very big horse trailers or fifth wheel RVs), although there are a few versions that are well suited to the commercial market, such as construction, where personnel and materials are transported or heavy machinery is towed to job sites. The variety and flexibility of these trucks is one of their most appealing features.
However, just like any other truck, the design of a dually has significant drawbacks, including:
It also makes parking a little more difficult. To accommodate the extra pair of wheels, the body is designed to be wider and heavier.
Starting a Car Hauling Business With a Dually Truck
What’s going on here? Yes, you read that right. Some short-distance car transporters have recently begun to move vehicles using dually trucks. If you own a dually vehicle and are considering a career shift, these questions can help you get started.
Do you need a CDL to haul cars with a dually?
A CDL (Commercial Driver’s License) is required for commercial drivers of large, oblong trucks. Some two- and three-car wedges are under the CDL weight limit. Your Gross Combination Weight Rating (GCWR) and Gross Vehicle Weight Rating (GVWR) will ultimately determine whether or not you require a CDL.
Do I need a Class A CDL to haul a truck and trailer?
There are many CDL categories, and we recommend getting a Class A CDL if you plan on hauling vehicles. This is the most powerful class, suitable for automobile transporters.
A Class A CDL is valid for any combination of vehicles with a GCWR of 26,001 pounds or more, as long as the GVWR of the towed vehicles is greater than 10,000 pounds. You can tow vehicles in a 7-0 car trailer in a fifty-foot wedge with this certification.
How do I get a CDL?
To obtain instruction and a license, the majority of people will enroll in a truck driving school. All of this might easily set you back $3,000 or more. In most states, however, you can get your permit and take your driving test without going to trucking school. However, we do not recommend going into the test blindly, especially if there are low-cost solutions accessible. It’s a good idea to talk to local experts about the best course of action.
There’s also the issue of taking the exam in the same vehicle you’ll use to transport automobiles. The key is to demonstrate your knowledge in a car that is classified correctly.
As a result, if you want to haul vehicles yet take your class and pass your test in a dry van, you may be limited. You might earn a Class A CDL with manual, fifth-wheel, and air brake restrictions if you attend in a dually truck with a trailer that has no manual transmission, fifth-wheel, or air brakes.
You might be a typical Ford vs. Chevy buyer when it comes to heavy-duty pickup trucks. Many heavy transporters, on the other hand, consider the Ram 3500 HD to be the best dually. But don’t be swayed by the rivalry. Consider your needs, your budget, and the truck’s specifications instead.
You’ll have to be truly competitive in the market if you want to transport cars using a dually, because you can only move so many vehicles at a time and over short distances. Car hauling rates are continuing to fall, so you’ll either need a fully paid-up dually truck or be willing to drop your car hauling fees significantly to compete on short-distance journeys. It is preferable to use a semi truck.