Posted on 09/16/22

Common Mistakes Made By Entrepreneurs And Businesses When Calculating Auto Shipping Costs

Common Mistakes Made By Entrepreneurs And Businesses When Calculating Auto Shipping Costs

The cost of shipping a vehicle from one place to another involves many factors that can affect the overall pricing. Many businesses and entrepreneurs who are new to auto shipping might not be fully aware of all of the factors that go into determining these costs. As a result, they might find that they have underestimated the actual cost of shipping or they could end up paying more due to lack of knowledge. Here are some common pitfalls to avoid when determining car shipping costs. 

Insufficient Knowledge of How Pricing Works

Many people are not completely familiar with how auto transport companies calculate their shipping costs. Many things can impact shipping costs, and some of these factors even fluctuate. There is no “one size fits all’ when it comes to the price of auto shipping. Things like the size and weight of the vehicle, the shipping distance, the pickup and delivery location, the type of transport used (open or enclosed), and extra features such as expedited shipping or door-to-door delivery might cost more. Fuel prices are also a determining factor, and since these change on a daily basis, your price could change if you book far in advance. 

Not Choosing an Experienced Shipping Company

There are a myriad of car shipping companies but few of them actually have the experience and expertise to provide quality transportation services. If you choose a shipping company with the ‘lowest price,’ you may not be getting an accurate quote. Oftentimes, these less experienced shipping companies will lure you in with lower prices, only to hit you with surcharges and additional fees upon delivery. Furthermore, these companies might not be reliable and could pose a high risk to your vehicle if you ship with them. In some cases, you might not even receive compensation if your vehicle is damaged during transport. Always do ample research and check reviews before choosing a shipping company. You also want to make sure that the shipping company has proper licensing, registration, and insurance.

Not Considering Insurance Coverage

In many cases, a reputable car shipping company will provide some form of insurance to their customers when shipping their car. That said, you will need to read the insurance policy thoroughly to understand more about the coverage. In some cases, you will need to purchase additional coverage to ensure that your vehicle(s) are properly protected. 

Not Considering the Time of Year

Many factors can impact shipping costs including the time of year. Peak season for auto shipment typically runs from spring through summer and you could pay up to twice as much during peak season. If you want to avoid paying the highest price, you should schedule your shipment during the off-season to save money.