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Financing and insurance for auto transport (car haulers)

Open and enclosed car carriers, vehicles in your care, and a trailer that can cost as much as the truck.

Short answer

Three things usually come first for a car hauler. One is paying for the truck and the car carrier trailer, which can be as big a purchase as the truck. Another is cash for fuel and repairs while dealers, auctions, or brokers pay on terms. The third is cargo coverage with limits that match the vehicles you carry, because one load can be worth a lot. Many car haulers start small with a pickup and a wedge trailer, so weight ratings and license groups matter too. Providers and insurers decide what they offer, not us.

Which financing products do car haulers usually look at?

Car hauling ranges from a pickup and a small wedge trailer to a tractor pulling a full multi-car carrier. The financing question changes with the setup, but the trailer is always a major piece of it.

  • Equipment financing

    The truck and the car carrier, together or separately. Trailer type, age, and condition matter as much as the truck.

  • Factoring

    Dealers, auctions, and brokers may pay on terms. Ask about advance timing, fees, and how a damage claim on a load affects that invoice.

  • Working capital

    Fuel, tires, and trailer repairs between loads. Add up the total you would repay before you sign.

  • Line of credit

    Hydraulic and ramp repairs that come without warning, if you have the history providers look for.

  • SBA loans

    7(a) loans can cover trucks and trailers, and 504 loans can cover a yard.

  • Fuel cards

    Network coverage along your lanes and fuel records for IFTA. We do not currently route fuel card requests.

Accounts receivable financing and asset-based lending tend to suit larger auto transport carriers with steady contract receivables from dealers or manufacturers.

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Which insurance lines do car haulers usually ask about?

Every load is other people's vehicles, often new or high-value ones. That puts cargo limits, deductibles, and how damage during loading is treated at the center of the insurance question. Policies vary, so read the declarations, definitions, and exclusions.

  • Motor truck cargo

    The center of car hauling coverage. Match limits to your most valuable load, and ask how open and enclosed loads are treated.

  • Primary auto liability

    Brokers and dealers often set their own limits, so read their carrier requirements.

  • Physical damage

    List the car carrier trailer at its full value. It can cost as much as the truck.

  • Garagekeepers liability

    Customers' vehicles parked at your yard between loads may fall outside cargo coverage. Ask where cargo coverage ends.

  • Occupational accident

    Climbing ramps and handling tiedowns are part of the job, and owner-operators often work without an employer's coverage.

Also worth a look: commercial umbrella if contracts set higher total limits, general liability if you run a yard or deliver onto dealers' lots, and workers' compensation if you hire drivers.

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What makes car hauling different?

Match cargo limits to your most valuable load. A cargo limit that covers an average load may fall short on a load of new or high-end vehicles. Ask your agent how limits apply per vehicle and per load, what the deductible is, and whether open and enclosed loads are treated differently.

Loading and unloading are part of the risk. Damage often happens while vehicles are driven on or off the trailer, or from tiedowns. Ask how your policy treats damage during loading and unloading, and whether it covers vehicles while they sit at your yard.

Securement has its own rule. Federal rules require cars, light trucks, and vans of 10,000 pounds or less to be restrained at the front and rear with at least two tiedowns. Tiedowns that attach to the vehicle must use the mounting points designed for that purpose. Heavier vehicles follow a different securement section.

Small setups still face weight thresholds. A pickup and wedge trailer rated 26,001 pounds or more combined, with a trailer rated over 10,000 pounds, is in Group A, the Class A license group. A combination rated 10,001 pounds or more used in interstate commerce meets the federal definition of a commercial motor vehicle. See hotshot trucking for more on small rigs, and new authority if you are just starting.

Frequently asked questions

How much cargo coverage does a car hauler need?

We can't tell you a number. Look at the value of your most valuable likely load, how your policy sets limits per vehicle and per load, and what your brokers, dealers, and shippers require in their contracts. Then ask your insurance agent how your policy compares. See motor truck cargo.

Does cargo insurance cover damage while loading a car?

It depends on the policy. Some cover loading and unloading, some limit or exclude it, and some treat a vehicle being driven onto the trailer differently. Ask your agent to show you the wording.

Can I start car hauling with a pickup and a wedge trailer?

Many car haulers start that way. Check the weight ratings first: a combination rated 26,001 pounds or more with a trailer rated over 10,000 pounds is in the Class A license group, and interstate work brings federal commercial vehicle rules at 10,001 pounds. Then compare equipment financing for the truck and trailer. See hotshot trucking.

What are the tiedown rules for cars?

Cars, light trucks, and vans of 10,000 pounds or less must be restrained at the front and rear with at least two tiedowns. Tiedowns that attach to the vehicle must use its designed mounting points, and tiedowns that go over or around the wheels must hold it side to side, front to back, and up and down. Heavier vehicles fall under a different securement section.

Can I finance an enclosed car trailer?

Enclosed trailers are financed like other equipment, through equipment financing. Providers weigh the trailer's age, condition, and price, your time in business, credit, and down payment, and whether to work with you is their decision.

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