Dispatch AutopilotHow to start a car hauling business: step-by-step guide
Starting a car hauling company takes a truck, a trailer, the right federal registrations and insurance, and a steady way to find loads. This guide walks through each step in the order you will do it.
1. Choose your equipment
Your equipment decides your startup cost, your insurance and which loads you can take:
| Setup | Typical capacity | Good to know |
|---|---|---|
| Pickup truck (dually) with a wedge or gooseneck trailer | 2–4 cars | Lower startup cost. Many setups exceed 10,001 lbs combined weight, which raises insurance and registration requirements. |
| Semi with a 7–10 car stinger or high-mount | 7–10 cars | Higher revenue per trip, needs a CDL, higher insurance and equipment cost. |
| Enclosed trailer | 1–6 cars | Higher rates for exotic and classic cars, fewer loads per trip. |
2. Form your business
Most new carriers form an LLC in their state, get an EIN from the IRS (free) and open a business bank account. Keep business money separate from personal money from day one; it makes taxes and settlements much easier.
3. Get your USDOT number and MC authority
Interstate for-hire carriers need a USDOT number and operating authority (an MC number) from the Federal Motor Carrier Safety Administration. You apply through FMCSA’s online registration system.
- Operating authority fee: $300 per authority type.
- BOC-3: a process agent files this for you. Blanket process agent services usually charge a small one-time fee.
- Insurance filing: your insurance company files proof of liability insurance with FMCSA.
- Waiting period: your authority becomes active only after the review period ends and your BOC-3 and insurance are on file. Plan for several weeks, and check your status on FMCSA’s SAFER system before hauling. Running under a pending authority is not allowed.
4. Get insurance
For-hire carriers of general freight in interstate commerce must carry at least $750,000 in public liability insurance for vehicles of 10,001 lbs GVWR or more, and $300,000 under 10,001 lbs (49 CFR 387.9). Cargo insurance is not federally required, but brokers and shippers almost always ask for it. See our car hauler insurance guide.
5. Registrations after your authority
- UCR (Unified Carrier Registration): an annual fee based on fleet size.
- IRP plates and IFTA fuel tax account if you run interstate with qualifying vehicles.
- ELD for hours of service, unless you qualify for an exemption.
- Drug and alcohol testing: join a testing consortium and register in the FMCSA Drug & Alcohol Clearinghouse if your drivers need a CDL.
- New entrant safety audit: FMCSA audits new carriers within the first 12 months. Keep driver files, maintenance records and hours-of-service logs organized from the start.
6. Find loads
Most new car haulers start on auto transport load boards, then build direct relationships with brokers, dealers and auctions that pay better and faster. Read load boards for car haulers.
7. Set up your office
From the first load you need: a bill of lading with inspection photos, invoices sent to the broker, a record of who paid and who is late, expenses with receipts, and driver pay statements. You can start with our free BOL template and load profit calculator, and move everything into one app when you are ready.
Questions
How much does MC authority cost?
The FMCSA operating authority fee is $300 per authority type. Add the BOC-3 filing, insurance down payment, UCR and state registrations for your total startup cost.
How much insurance does a car hauler need?
The federal minimum public liability for for-hire general freight carriers is $750,000 for vehicles of 10,001 lbs GVWR or more and $300,000 below that. Brokers usually also require cargo insurance.
Can I start car hauling with a pickup truck?
Yes. Many carriers start with a dually and a 2–4 car wedge or gooseneck trailer. Check the combined weight, because it affects insurance, CDL and registration requirements.
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