The Two Documents Involved: Order to Move and Bill of Lading
An auto transport shipment typically involves two separate documents. The Order to Move (sometimes called a dispatch confirmation) is signed at booking and sets the agreed price, pickup and delivery windows, and vehicle details. The Bill of Lading is signed at pickup and delivery and serves as both the condition report and the legal receipt for the vehicle. Confusing the two—or only reading one—leaves gaps in what’s actually been agreed to.
Cancellation Clauses: What Happens If Plans Change
Look for the specific cutoff before a cancellation triggers a fee, the dollar amount or percentage of that fee, and whether it differs depending on how close to pickup the cancellation happens. Some contracts also address who can cancel without penalty—for example, if a carrier isn’t secured within an agreed timeframe. A contract that’s vague on cancellation terms, or that doesn’t mention them at all, leaves the customer with no leverage if plans change.
Deposit and Payment Terms
The contract should state exactly when a deposit is charged, how much of the total it represents, whether it’s refundable and under what conditions, and how the remaining balance is collected—typically cash or certified funds to the driver at delivery. A contract that’s unclear about refundability, or that requires the full balance paid up front before a carrier is even assigned, is worth questioning before signing.
Liability and Valuation Coverage
Every carrier’s cargo insurance has a policy limit, and some contracts include a separate “valuation” clause that can cap what’s actually payable per vehicle or per claim—sometimes below the carrier’s stated policy limit. For a higher-value vehicle, this is the clause that determines whether standard coverage is enough or whether additional valuation coverage should be requested before the vehicle ships, not after a claim is filed.
What the Contract Excludes
Most contracts list specific exclusions: existing mechanical issues, items left inside the vehicle, damage from pre-existing conditions not noted on the Bill of Lading, and sometimes environmental factors like hail or road debris depending on the carrier. Reading the exclusions list before pickup—not after a claim—clarifies what documentation will actually matter at pickup inspection.
Pickup and Delivery Window Language
Contracts typically describe timing as an estimated window, not a guaranteed appointment, unless a separate guaranteed-service clause was purchased and explicitly stated. Confirm what the contract says happens if a window is missed for reasons within the carrier’s control versus reasons outside it, such as weather or road closures, since those two scenarios are usually treated differently.
Arbitration and Dispute Resolution Clauses
Many contracts include an arbitration clause requiring disputes to go through a private arbitration process rather than small claims court. This isn’t automatically a red flag—it’s standard in the industry—but it’s worth knowing it’s there before a disagreement happens, since it affects what options are actually available if a claim isn’t resolved to satisfaction.
Broker Versus Carrier Terms in the Same Contract
If working with a broker, confirm whether the contract is with the broker, the assigned carrier, or both, and which party’s terms govern cancellation and liability. A contract that names a carrier who hasn’t yet been assigned, or that’s silent on which party is accountable for what, makes it harder to know who to contact if a problem comes up mid-shipment.
Red Flags in Contract Language
Vague or missing cancellation terms. No stated liability limit or valuation clause. Full payment required before a carrier is assigned. Pressure to sign quickly without time to read the document. A company unwilling to send the contract in advance of a verbal agreement. Any of these is reason to slow down and ask direct questions before signing.
Before Signing: A Short Checklist
Cancellation cutoff and fee confirmed. Deposit amount and refund conditions confirmed. Liability and valuation limits understood. Pickup and delivery window language reviewed. Broker versus carrier responsibility clear. Contract received and read before any payment is made. A few minutes spent on this checklist prevents most disputes before they start.
Ready to Read the Terms Before You Sign?
Reading the contract closely, before signing, is one of the simplest ways to protect a shipment from surprises later.