What Is a Non-Binding vs. Binding Moving Estimate?

What Is a Moving Estimate?

A moving estimate is a written document that outlines the expected cost of your relocation based on an in-home or virtual inspection. Keep in mind that a quote given over the phone without any kind of inventory or walkthrough (virtual or otherwise) does not count as a real estimate. This important document should cover all your transportation charges, accessorial fees, advance charges, and liability coverage.

Moving estimates come in three main types: binding, non-binding, and binding not-to-exceed. Each type has different rules and financial impacts, and it's important that no matter which one you choose, you get it in writing. Here is a quick breakdown of how they compare:

Moving Estimate Comparisons

Binding Moving Estimate

A binding estimate guarantees you do not have to pay more than the estimated amount at the time of delivery. The mover calculates this price by taking a detailed inventory of the items you plan to relocate. However, this means that even if your shipment ends up weighing less than expected, you still pay 100% of the agreed price on delivery day.

Advantages:

• Guaranteed final price.
• Protects your budget from surprise overages.
• Makes comparing quotes from different companies much easier.

Disadvantages:

• You will not save money if your shipment ends up weighing less than expected.
• Often priced slightly higher upfront to cover the risk the mover takes on.

If you include additional items and services in your shipment, or there are unforeseen circumstances such as stairs, elevators, or required parking permits, the original estimate is voided. In this case, the mover must prepare a new binding estimate to include all services and items to be transported. This must be done before they load your belongings onto the truck.

Best situations to use this estimate:

• You have a strict budget you cannot exceed.
• You have a finalized list of everything you are taking with you.
• You want the peace of mind that comes with a locked-in price.

Non-Binding Moving Estimate

A non-binding estimate helps you determine the cost of your move, but it is not a guarantee of your final costs. The mover calculates this price based on the estimated weight of your belongings, and the final price is determined after the truck is loaded and weighed. It should be reasonably accurate and include the basis for your final charges, such as the actual weight of your shipment, the services provided, and the mover's published tariff.

To protect consumers, the Federal Motor Carrier Safety Administration enforces a strict cap. Under a nonbinding estimate, the moving company cannot require you to pay more than 110% of the non-binding estimate at the time of delivery. For example, if your quote is $1,000, you will only have to pay up to $1,100 on moving day. If your total cost exceeds that 110% mark, the mover must bill you for the remaining balance 30 days after delivery.

Advantages:

• You pay less if your items weigh less than estimated.
• Usually cheaper upfront than a binding quote.

Disadvantages:

• Your final bill could be 10% higher at delivery.
• Provides less budget certainty for planning.

Keep in mind that a major red flag with non-binding quotes is a price that seems too good to be true. Scammers will offer an unusually low quote to secure your business, then hike up the price once your items are on the truck. This is why it's important to compare multiple quotes, and be wary of companies that demand cash-only payments.

Best situations to use this estimate:

• You have a flexible budget and can handle slight cost changes.
• You are unsure of the final size of your move and might leave some items behind.

Binding Not-to-Exceed

A binding not-to-exceed estimate gives you the best of both worlds. Sometimes called a maximum not-to-exceed estimate, this option means the moving company estimates the weight of your belongings and promises a maximum price cap.

On delivery day, your final bill will be whichever is lower: the actual weight of your shipment or the original maximum price quote. This means you never pay more than the maximum limit, but you still get to save money if your boxes end up weighing less than expected. It is a popular choice, although not every mover offers it.

Advantages:

• Caps your maximum financial risk.
• Allows you to save money if your shipment is light.
• Offers the best of both worlds for consumer protection.

Disadvantages:

• Can be harder to find movers who offer this option.
• Upfront estimates may appear higher than those for standard non-binding options.

Best situations to use this estimate:

• You want budget certainty but also the chance to save money.
• You are moving a long distance with a variable number of heavy items.
• You want maximum protection against surprise fees.

What To Look for in a Written Estimate

You should never sign a written estimate if it is blank or incomplete, so if a mover hands you paperwork with missing information, walk away. Signing a blank document gives dishonest movers the power to write in whatever price they want later.

A proper, legitimate written estimate should include:

• The type of estimate (binding, non-binding, or not-to-exceed).
• An itemized list of your belongings.
• All transportation, accessorial, and advance charges.
• Your pickup and delivery dates.
• Details of your liability and insurance coverage.

Check the paperwork carefully to see what is included. You want to know upfront if movers charge extra for stairs, or if you need to add services like having movers assemble and disassemble furniture. It is also a great time to confirm if movers pack for you or if you need to handle the boxes yourself.

Red Flags and Moving Scams To Avoid

Finding a trustworthy mover is vital for a smooth relocation, but unfortunately, some bad actors try to take advantage of people during the stressful moving process. Keep an eye out for warning signs to spot scams before they happen. To protect yourself against moving scams, it pays to know what to look for.

Look out for these common red flags:

• The mover gives you a blank or incomplete estimate.
• They refuse to provide a written estimate after an inspection.
• Their quote is unbelievably low compared to other companies.
• You cannot find their USDOT license number visible on their paperwork or website.
• They pressure you to pay a large cash deposit up front.
• The service descriptions on the paperwork are vague.
• They do not mention any liability or insurance coverage.
• The paperwork does not clarify if the estimate is binding or non-binding.

Reading real moving scam stories and what to do when it happens to you can also help you spot these tricks in the wild.