Auto transport broker vs carrier: who does what, who is liable, and how the money moves.
Most car shipments pass through two companies: a broker who sells the move and a carrier who hauls the car. They hold different federal authority, carry different risk and get paid at different moments. Here is the difference, with the rules behind it.
Updated 5 October 2026·7 minute read·Rules from FMCSA, eCFR and the U.S. Code
The short version
- The carrier owns or leases the truck, holds motor carrier authority, has liability insurance on file with FMCSA, loads the car, signs the bill of lading and is responsible for the car until it is delivered.
- The broker arranges the move for a fee. It holds broker authority and a $75,000 bond or trust fund, finds a carrier (usually through a load board), and never takes possession of the car.
Many companies that sell car shipping to the public are brokers, and that is normal. What matters to everyone involved is that each side holds the authority for the work it actually does.
Authority and money on file
Carrier
- A USDOT number and motor carrier operating authority.
- Liability insurance on file: at least $750,000 for vehicles rated 10,001 lb and up, $300,000 for a fleet of only lighter vehicles.
- Cargo insurance is not required by FMCSA, but brokers and shippers make it a condition of giving you the car. The full carrier checklist.
Broker
- Broker operating authority from FMCSA.
- Financial security of $75,000, either a surety bond (form BMC-84) or a trust fund (BMC-85), under 49 CFR 387.307. It is there so carriers and shippers can be paid if the broker does not pay.
- No authority to haul. In FMCSA's words, a broker "never takes possession" of the property.
The carrier is responsible for the car. The broker is responsible for the deal.
Who is liable if the car is damaged
Under the Carmack Amendment (49 U.S.C. 14706), the carrier that receives or delivers the shipment is liable for actual loss or damage to the property in its care. That is why the inspection at pickup and the signature at delivery matter so much: the condition written on the bill of lading is what a damage claim is decided on. A broker does not take possession of the car, so the claim runs to the carrier and its cargo insurance.
A summary, not legal advice. Contracts between the shipper, broker and carrier can add obligations on top of the statute.
How the money moves
- Shipper to broker. The customer pays the broker's price, sometimes split into a deposit at booking and the balance at delivery.
- Broker to carrier. The carrier is paid the agreed rate. In car hauling that is often COD: the driver collects all or part of it from the receiver at delivery. Otherwise the broker pays by ACH or check on agreed terms, with quick pay or factoring to get the cash sooner.
- The difference between what the shipper paid and what the carrier got is the broker's compensation.
For a carrier, when and how a broker pays changes what a load is worth: net-30 terms usually mean factoring at around 3%, while COD costs nothing. What a load actually nets shows the effect line by line.
What a carrier can ask a broker for
Under 49 CFR 371.3, a broker keeps a record of every brokered transaction for three years: the shipper, the carrier and its MC number, the bill of lading number, the broker's compensation and who paid it, what the broker collected and what it paid the carrier. Each party to the transaction has the right to review that record.
FMCSA proposed in November 2024 to make those records electronic and due within 48 hours of a request, and sent a revised proposal for White House review in August 2026. As of 5 October 2026 it is still a proposal, not a rule; the right to review in 371.3 already applies.
And dispatchers?
A dispatcher who works for a carrier under a written agreement, does not deal with shippers on its own account, stays out of the money and is paid by the carrier is the carrier's agent, not a broker. A dispatcher who decides which of several carriers gets a load, or takes money from the broker, is brokering, and brokering without authority can cost up to $10,000 per violation. The full FMCSA line.
Both sides on loadez
- Brokers and shippers post loads on the loadez load board for free, see every claim with a named driver, approve, counter or decline, and get load progress, documents and invoices for their loads free.
- Carriers see each load ranked by what it nets their own truck, with the broker's rating and payment terms counted in, before they claim it. The BOL, inspection photos and the receiver's signature come back from the driver's phone the same minute.
Common questions
What is the difference between an auto transport broker and a carrier?
A carrier owns or leases the truck, holds motor carrier authority and liability insurance, hauls the car and is responsible for it until delivery. A broker arranges the move for a fee, holds broker authority and a $75,000 bond or trust fund, finds a carrier and never takes possession of the car.
Does an auto transport broker need a bond?
Yes. A broker must have $75,000 of financial security on file with FMCSA, either a surety bond (form BMC-84) or a trust fund (form BMC-85), under 49 CFR 387.307.
Who pays for damage, the broker or the carrier?
Under the Carmack Amendment, 49 U.S.C. 14706, the carrier that receives or delivers the vehicle is liable for actual loss or damage to it. The condition written on the bill of lading at pickup and delivery is what the claim is decided on, which is why brokers and shippers require carriers to carry cargo insurance.
Post free as a broker. Claim by net as a carrier.
Brokers and shippers post free, forever. Carriers start free for one truck.