Corporate Relocation Car Shipping: A Guide for HR and Mobility Teams

When a policy doesn't address vehicles clearly, employees face three bad options: lose several days driving, pay out of pocket, or book the cheapest transport they can find and deal with delays. None of those help a new hire start strong.

A clear vehicle clause sets expectations, controls cost and protects the employee's car.

Lump sum: The employee gets a fixed amount and books transport themselves. Simple to run; works for junior roles and low volume. Risk: employees choose low-ball quotes that fall through.

Reimbursement: The employee books, then submits receipts up to a cap. More control than a lump sum, but more paperwork.

Managed shipping: The company or its relocation firm books directly with a preferred vendor at agreed rates. Best for higher volume and senior roles; most consistent experience.

Since 2018, employer-paid or reimbursed moving expenses — including vehicle shipping — have generally been taxable income to civilian employees, and that treatment has since been made permanent. Many companies "gross up" the payment to cover the employee's added tax.

Military moves are treated differently. For details, read is car shipping tax deductible, and consult your tax advisor on payroll treatment.

Companies with regular relocation volume can often negotiate better rates than individual retail pricing, especially on common lanes. Get volume tiers in writing, along with service standards for pickup windows and communication.

ShipMyCar US handles single and multi-vehicle shipping nationwide.

• Eligibility: Which employee levels and move types qualify.
• Distance threshold: For example, moves over 500 miles.
• Number of vehicles: One, or one per licensed driver in the household.
• Service level: Open transport by default; enclosed for vehicles above a set value with approval.
• Payment method: Lump sum, reimbursement cap or direct billing.
• Timing: How far in advance the employee must request transport.
• Insurance and damage claims: Who coordinates claims and what documentation is required.
• Tax treatment: Whether the company grosses up the benefit.

• Active FMCSA broker or carrier authority — verify on SAFER. See how to verify FMCSA and USDOT numbers.
• Clear pricing with fuel and insurance included
• Volume pricing in writing
• Insurance certificates available per carrier
• A named contact for your employees
• Experience with both open and enclosed transport
• Clear claims process

A good vehicle policy removes work from the employee at a stressful time:

• One point of contact: A named coordinator at the vendor.
• Clear timelines: When to request transport, and how long pickup and transit take.
• Simple paperwork: What documents to have ready.
• Flexible delivery: To a new home, temporary housing or the office.
• Communication: Updates at carrier assignment, pickup and delivery.

New hires who arrive with their car — without a four-day drive — start work rested and focused.

• Set open transport as the default; approve enclosed only above a vehicle value threshold.
• Ask employees to give a pickup window of several days.
• Book two to three weeks ahead whenever possible.
• Use volume pricing on common lanes.
• Pay for a second vehicle only when the household needs it.

Typical open-carrier pricing for a sedan runs about $700–$1,050 for 500–1,000 miles and $1,100–$1,500 for 1,500–2,000 miles.

Ask your vendor for a simple report of each shipment: dates, cost, transport type and any claims. That makes it easy to budget, spot problem lanes and update your policy each year. For the employee's side of the move, share our vehicle relocation guide.

Relocation packages vary widely by company and employee level, but a typical mid-career package may include:

• Household goods packing and moving
• Temporary housing for a few weeks
• House-hunting trips
• Travel for the employee and family
• Home sale or lease-break assistance
• A miscellaneous allowance
• Vehicle shipping — sometimes, and often only if the employee asks

Because vehicle shipping is often left out or vague, it's one of the most common relocation pain points. Adding a clear clause costs relatively little compared with the rest of the package.

Employer-paid moving expenses are generally taxable income for civilian employees. Say the company pays $1,200 to ship an employee's car. If the employee's combined federal and state tax rate is about 30%, they'd owe roughly $360 on that benefit. Many companies "gross up" the payment — paying extra to cover the tax — so the employee isn't out of pocket. A gross-up on $1,200 at a 30% rate costs about $1,700 in total.

Payroll and tax treatment should be confirmed with your tax advisor.

• Low volume (a few moves a year): Standard pricing per move.
• Moderate volume (several moves a month): Discounts become possible on common lanes.
• High volume (dozens a month): Dedicated pricing by lane, with service-level commitments.

Discounts depend on consistency more than raw numbers. Ten moves a month on the same three lanes is easier to price well than ten moves scattered across the country.

• Proof of active FMCSA authority and insurance
• Pricing by lane and vehicle class, with fuel and insurance included
• Volume tiers in writing
• Pickup window commitments by region
• Communication standards: assignment notice, pickup and delivery updates
• Claims process and average resolution time
• References from other corporate clients
• Reporting: shipment history, costs and claims
• Ability to handle enclosed, multi-car and expedited moves

Give employees a one-page guide with:

• How to request transport and how far in advance
• What the company covers and any limits
• How to prepare the car (fuel level, personal items, toll tags)
• What to expect at pickup and delivery
• Who to call with questions
• How registration in the new state works — link to moving a car to a new state

For overseas assignments, vehicle decisions get more complicated: export rules, import duties, right-hand-drive markets and storage while the employee is away. Many companies offer a storage allowance or a sale-assistance option instead of shipping. If shipping is part of the package, see international car shipping.

Lump sum

• *Pros*: Simple to administer; employee has full control; predictable budget.
• *Cons*: Employees may choose unreliable low-ball quotes; no company visibility into problems; the employee handles every issue alone.

Reimbursement up to a cap

• *Pros*: Costs tied to actual receipts; employee still chooses a provider.
• *Cons*: More paperwork; employees may not know what a fair price is.

Managed shipping with a preferred vendor

• *Pros*: Consistent service, negotiated rates, one point of contact, clear records.
• *Cons*: Requires vendor management and some setup.

Many companies use managed shipping for senior and mid-level moves and a lump sum for entry-level moves.

"The company will pay for transport of up to two personal vehicles per household for relocations over 500 miles, using the company's preferred vendor. Open transport is standard; enclosed transport may be approved for vehicles valued over $75,000. Employees must request transport at least 14 days before their start date. Vehicle shipping benefits are taxable and will be grossed up according to the company's relocation tax policy."

Adjust the numbers to fit your budget and workforce.

Track a few simple measures each quarter: average cost per move, average pickup time after request, on-time delivery rate, claims rate and employee satisfaction. If pickups run long on certain lanes, that's a sign to book earlier or adjust vendors. If claims are frequent, review inspection practices and transport type.

Is employer-paid car shipping taxable to employees?: Generally yes for civilian employees, as part of taxable moving benefits. Many employers gross up the payment.

Should we use lump sum or managed shipping?: Lump sums suit low volume and junior roles. Managed shipping gives more control and a better experience at higher volume.

Can companies get volume discounts on car shipping?: Often, yes, especially with steady volume on common lanes. Get rates and service standards in writing.

What should a vehicle relocation policy include?: Eligibility, distance threshold, number of vehicles, service level, payment method, timing, claims process and tax treatment.

Do relocation companies handle car shipping?: Many relocation management companies subcontract vehicle shipping. Working directly with a vendor can sometimes lower cost and improve communication.

Should the policy cover two cars?: Many policies cover one vehicle per licensed driver in the household, up to two. It depends on your budget and employee level.

How far ahead should employees request shipping?: Two to three weeks for most moves, and longer in summer.

Can new hires choose their own car shipping company?: With a lump sum or reimbursement policy, usually yes. With managed shipping, the company's vendor is used for consistency.

What happens if an employee's car is damaged in transit?: The employee notes the damage on the Bill of Lading at delivery, and the carrier's insurance handles valid claims. With managed shipping, the vendor helps coordinate the claim so the employee isn't left to handle it alone.

Should the company pay for enclosed transport?: Usually only for high-value vehicles above a set threshold, with approval. Open transport is safe and appropriate for most employee cars.