Easy Steps for Starting an Auto Hauling Business

auto hauling

Many people dream of starting their own business. In the modern era, business opportunities can appear around every corner, particularly in the commercial transport industry. Imagine starting your own Auto Transporter business – a business that is in demand for vehicle owners who need their autos transported across town or across the country. If this sounds like a great match for your skills and interests, this guide will help you get started with Auto Transporter insurance and many other aspects you must consider before taking the plunge into business ownership. 

Auto Transporter Businesses: Myriad Opportunities

Auto haulers are tasked with transporting vehicles from one destination to the next. This broad definition opens the door to numerous opportunities within the commercial transport sector. An Auto Transporter service may transport vehicles to:

  • Auto shows
  • Dealerships
  • Repair and maintenance facilities
  • Storage facilities
  • Cross-country destinations
  • Ports and rail facilities

Auto Transporters go beyond simple towing services. An auto hauler typically transports vehicles from state to state or from manufacturing centers to dealerships, shows, or next-leg transportation hubs. 

Experience and Equipment Requirements

In any commercial transportation venture, experience in handling large trucks and trailers is a requirement. For auto haulers, large trailers including enclosed single- or dual-car models or larger multi-car hauler trailers (car carriers) necessitate behind-the-wheel experience on the part of the transporter. 

If you are just starting out, purchasing a used enclosed trailer or single-vehicle flatbed may be all you need to launch your business. As your business grows, investing in car carriers or larger enclosed trailers may be necessary. Be prepared, as these specialized pieces of equipment can very costly and will require a commercial drivers license along  with knowledge of Class A operations.

The Business Plan

For any new business, having a long-range plan is critical. Auto transporters are no exception. In addition to Auto Transporter insurance, a business plan can help in risk management decisions while defining what you want to do and how you expect to achieve your business goals. For auto haulers, a business plan includes many factors. Ask these questions to formulate your plan:

  • What are you Transporting? You may be needed to haul cars, trucks, vans, or larger vehicles, and each of these potential loads may require more than one trailer type. The number of vehicles you expect to haul at one time also influences your equipment needs.

  • Where are you Transporting to/from? For intrastate or interstate loads, licensing requirements may differ dramatically. It is critical for business owners to gain an understanding of all local, state, and federal transportation laws in order to avoid expensive penalties.
  • Where will you obtain your loads? Think about the types of contracts you are interested in, such as transporting vehicles between automakers and dealers, collectible cars to auto shows, or cross-country transport for people moving to new locations. Loads can come from load boards, brokerage houses, or dealers as well as individual customers. 
  • What job classifications will you need to launch your business? If you’re just getting started, you may wear several different hats as owner, driver, and dispatcher. Larger businesses will need additional personnel, requiring you to define specific roles and the steps needed to obtain employees. 

Auto Transporter Insurance: Protecting Your Business From Liability Risks

An Auto Transport business requires robust insurance solutions to protect company assets. As an owner, you are responsible for more than just the equipment you own. You are also responsible for the vehicles in your care. Auto Transporter insurance protects against a wide range of risks. Components of a comprehensive Auto Transport insurance policy may include:

  • Garagekeepers coverage
  • Cargo coverage
  • General liability coverage
  • Commercial auto or semi-trailer coverage
  • Workers Compensation coverage

Speak to an experienced commercial transportation insurance provider before launching your business. An insurance professional can help you determine which coverages you need and develop policies to fit both your risk exposures and your budget. Along with Auto Transporter insurance, a solid business plan, and the drive to work for yourself, you are well on the way to a successful new business in the commercial transportation sector. 

About Western Truck Insurance Services

Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates, and coverage changes. Contact us today at (800) 937-8785 to learn more!