What should be in an auto transport contract?
Every auto transport booking generates two documents. The broker’s contract, which sets the price and terms between customer and broker. And the carrier’s bill of lading, which records the vehicle’s condition at pickup and delivery and serves as the basis for damage claims. Both matter. The broker’s contract gets less attention than it deserves; here is what should be in it.
Seven items every contract should include.
1. Company legal name and address
The contract should identify the company by its legal business name and a real physical address, not just a marketing brand name. The legal entity on the contract is what the customer is doing business with, and the entity that any future dispute resolution will involve.
2. The all-in price
The total amount the customer will pay, broken into broker fee and carrier payment. If the contract references fuel surcharges, terminal fees, or other add-ons, those should be itemized; a legitimate contract does not include a vague “additional fees may apply” clause.
3. Payment terms and timing
When payment is due (typically a portion after carrier assignment, balance at delivery), what payment methods are accepted, and what happens to any deposit if dispatch fails. A contract that does not address the deposit-refund scenario is a contract that allows the broker to keep the deposit regardless of outcome.
4. Pickup and delivery window
Estimated pickup date with a window (typically 2 to 5 days), estimated transit time, and whether the booking is door-to-door or terminal-to-terminal. Vague windows are a flag. A contract should commit to specific timeframes even if those timeframes are wide.
5. Vehicle condition documentation requirements
The contract should specify that the customer and carrier will jointly document vehicle condition at pickup using a bill of lading. Pre-existing damage should be noted in writing; new damage at delivery becomes the basis for a claim.
6. Insurance coverage and claims process
Two related items: the cargo insurance coverage on the carrier moving the vehicle, and the process for filing a damage claim if anything happens during transport. Both should be in the contract in writing, with specific dollar limits, claim filing instructions, and timeline expectations.
7. Cancellation policy
What happens if the customer cancels before pickup, after carrier assignment, or after pickup. Legitimate contracts allow free cancellation before carrier assignment; some charge a small administrative fee after assignment; almost none refund after pickup.
Three contract terms that signal walking away.
Non-refundable deposits regardless of dispatch outcome. A clause that allows the broker to retain the deposit even when no carrier is assigned is structurally adversarial. Pass.
Open-ended pricing language. Anything along the lines of “prices subject to change based on market conditions” without specific triggers or caps. This is the contractual basis for revising the price after booking; any broker who needs this clause has revised prices on prior customers.
Mandatory binding arbitration with the broker’s chosen arbitrator. Arbitration clauses are not unusual, but a clause that specifies a single arbitrator selected exclusively by the broker stacks the deck. Look for language allowing either party to propose an arbitrator, with neutral selection if the parties cannot agree.
What to confirm verbally before signing.
Once the contract looks acceptable, three things to confirm in conversation with a representative before the signature goes on the document. First, whether the quote is guaranteed or subject to revision; if subject to revision, under what conditions. Second, what the broker’s typical dispatch time looks like on this lane, in this season, at this price. Third, what the customer’s recourse is if the carrier fails to honor the pickup window.
A representative who answers these directly is one whose contract is likely to hold. A representative who hedges or deflects is signaling that the contract terms exist to protect the broker, not the customer.