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A New Transportation Career: How To Become an Auto Transporter

Author: Steve Thomas
by Steve Thomas
Posted: Oct 10, 2024

An auto transporter is someone who helps people move their vehicles from one place to another, especially across state lines. Whether it’s someone relocating or buying a car from out of state, transporting cars is important to many industries. The job of an auto transporter is not just about driving from point A to point B, but it also involves managing logistics, customer service, and safety regulations. The demand for auto transporters is growing, and the shipping of a car from state to state process is becoming more common due to increased online car sales and relocations.

In 2022, the U.S. auto transport industry was valued at $12 billion, with nearly 17 million vehicles being shipped annually. This means a career as an auto transporter offers a steady and growing opportunity.

Meeting Licensing Requirements for Auto Transporters

Before you start working as an auto transporter, you need to meet several licensing and certification requirements. First, you need a commercial driver’s license (CDL), which is mandatory for transporting large vehicles across states. You can acquire this by attending a truck driving school and passing the necessary tests.

In addition to a CDL, auto transporters must comply with federal regulations set by the Federal Motor Carrier Safety Administration (FMCSA). You will also need to apply for a USDOT number, which helps identify your business with the Department of Transportation. If you are shipping a car from state to state, the USDOT number is necessary because it tracks safety records and compliance with transportation laws.

The Importance of Insurance When Shipping a Car From State to State

Insurance is critical when becoming an auto transporter. Since you’ll be handling expensive cars, you need insurance coverage to protect yourself from any liability. Cargo insurance, specifically, covers the vehicles in your care while in transit. Many auto transporters also opt for liability insurance, ensuring that they are covered if an accident occurs while shipping a car from state to state.

To put it into perspective, in 2023, the average cost of transporting a vehicle across state lines ranged from $700 to $1,000. Without the right insurance, damages could cost thousands of dollars, which could cripple a transporter’s business.

Investing in Equipment to Become an Auto Transporter

Auto transporters need the proper equipment to run their business efficiently. You’ll need a reliable truck and trailer to carry vehicles. Open trailers are the most common type used in the industry because they are more affordable and can carry multiple cars at once. However, enclosed trailers, though more expensive, offer added protection for high-value or classic cars.

The cost of starting a career as an auto transporter varies based on the equipment you choose. A new open trailer can cost between $15,000 and $30,000, while enclosed trailers can range from $50,000 to $100,000. However, with millions of vehicles being moved across states yearly, this investment can lead to a successful business.

How Much Can You Earn as an Auto Transporter?

The potential earnings as an auto transporter depend on the type of transport service you provide and how often you work. On average, auto transporters earn between $50,000 to $90,000 per year. However, experienced transporters or those working with luxury or specialty vehicles can earn over $100,000 annually.

For instance, if you’re shipping a car from state to state, you could charge anywhere from $700 to $2,000 per car, depending on the distance and type of vehicle. This means that with just a few trips per month, your earnings can add up quickly.

The Future of Auto Transportation Careers

The demand for auto transporters is expected to continue growing. With more people relocating and buying vehicles online, the need for reliable transportation services is on the rise. Additionally, electric vehicles (EVs) are becoming more popular, which could further increase demand. Many consumers prefer to have their EVs shipped instead of driving them long distances to preserve battery life.

In fact, the global vehicle shipping market is expected to grow at a rate of 3.5% annually, reaching $14 billion by 2028. This trend shows that becoming an auto transporter is not just a stable career choice but one that offers long-term potential.

Start Your Auto Transporter Career Today

Becoming an auto transporter is a rewarding and profitable career. With the right licenses, equipment, and insurance, you can tap into this growing industry. Shipping a car from state to state is becoming increasingly common, and with the proper preparation, you can build a successful business in this field. From licensing to investing in trailers, the steps to becoming an auto transporter are clear and achievable. The future of auto transportation is bright, and now is a great time to get started in this exciting industry.

About the Author

A passionate blogger focused on the automotive industry.

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Author: Steve Thomas

Steve Thomas

Member since: Jun 11, 2024
Published articles: 27

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