Posted on 01/06/23

Signs Of Fraud In Car Shipping Services

Signs Of Fraud In Car Shipping Services

Despite better customer awareness and more information available to protect consumers from fraud, it still exists. Consumers pay billions of dollars each year for commercial fraud. Most of these losses could have been avoided if they had considered the most common fraudulent practices. Despite the fact that fraud in auto transport is very rare, it is better to avoid taking any risks, especially since cars are highly-valued assets. These red flags indicate that car shipping fraud is a possibility.

Unusually low prices:

If a car shipping company is offering prices that are significantly lower than other quotes you have received, this could be a red flag. Legitimate car shipping companies need to cover their costs, and if they are offering prices that are too good to be true, it is likely that they are cutting corners or engaging in fraudulent activities.

No business address, license, or established identity

One of the biggest red flags for car shipping fraud is a lack of an established name. You can easily search the internet for the business name to identify it on different review and listing sites. A well-designed website with useful content, videos, FAQs, and contact information is a strong indicator that you are dealing directly with a business. Verify the business by checking with respected business review sites such as Transport Reviews.com and the Better Business Bureau.

Unable To Reach Customer Service Or Get Answers

A reputable company that ships cars will make it easy for clients to reach them immediately. You should not call the company's phone number if you are denied access, ignored, or the person answering your questions on how the auto transport works. Reliable companies should be able provide all information necessary regarding any transaction that you make with them.

Prepayment of the Service Fee

Avoid car moving companies that require large deposits to secure their services. Avoid companies that require payment via Western Union or other money transfer services. This can make it difficult to trace the recipient.

Car Shipping Company Failing to Provide a Detailed Agreement

A refusal to give a quote or to sign a detailed agreement is another way to identify a company that is shipping car fraud. You should provide a quote that includes the vehicle type, destination, origin, and type of carrier (open/closed) and any other pertinent details.

Lack of transparency:

A reputable car shipping company should be transparent about its processes, fees, and policies. If a company is being evasive or unclear about these details, it could be a sign that they have something to hide.

No Inspection or Bill of Lading

A driver who refuses to inspect your vehicle or does not request it is a red flag. The carrier should conduct a vehicle inspection before they arrive at your location for pick-up. They also need to fill out a "bill of lading" report. Before shipping, they will take note of any damage to the vehicle. After delivery, your vehicle will be inspected by the carrier. If everything is in order, you can sign the bill of lading, which releases the truck from all liability.