Moving fraud is a well-documented problem in the US — from holding belongings hostage to demanding payment significantly above the quoted estimate. Even legitimate movers use contracts with minimal liability coverage for damaged goods and binding estimate terms that can be confusing. Understanding what you're agreeing to before moving day is the single best way to protect your belongings and your budget.
What is a Liability and Estimates?
A moving company contract (or 'bill of lading' for interstate moves) is the binding document governing the terms of the move. For interstate moves, the contract is regulated by the FMCSA (Federal Motor Carrier Safety Administration). Key terms include the type of estimate (binding, non-binding, or binding-not-to-exceed), the liability coverage for damaged or lost goods, the mover's dispute resolution process, payment terms, and what happens if the mover can't complete delivery on the agreed date.
Red flags to watch for
A non-binding estimate is just a prediction — the actual charge can be higher. FMCSA rules limit the overrun on non-binding estimates to 10% of the original estimate (the '110% rule'), but only for interstate moves. Local moves are typically unregulated by federal law and can vary significantly.
Companies that quote suspiciously low prices sometimes use hostage holding — loading your belongings and then demanding a much higher payment before unloading. Always verify FMCSA registration (for interstate moves) and check USDOT number at the FMCSA website.
The default liability under federal law is Released Value, which pays only $0.60 per pound for damaged or lost goods. A 40-pound flat-screen TV worth $500 would yield a $24 settlement under Released Value. You must request Full Value Protection in writing — it costs more but is far more comprehensive.
FMCSA rules require interstate movers to accept credit cards or debit cards. A mover that insists on cash-only payment is a significant red flag for potential fraud.
Moving contracts often specify a delivery window ('on or between dates X and Y'). If the contract has no delivery date, or a very wide window, your belongings can be warehoused indefinitely.
Your legal rights
For interstate moves, moving companies are regulated by FMCSA under 49 CFR Part 375. Movers must provide a written estimate, a 'Your Rights and Responsibilities When You Move' booklet, and cannot charge more than 110% of a non-binding estimate at delivery. You have the right to be present at reweigh if disputed. For lost or damaged goods, you have 9 months to file a claim; the mover has 30 days to acknowledge and 120 days to settle or deny it. For local moves, state law applies and varies. The FMCSA's consumer complaint portal allows you to report violations.
Questions to ask before you sign
- 1Is the estimate binding, non-binding, or binding-not-to-exceed — and what is my maximum liability if actual costs exceed the estimate?
- 2What liability coverage is included — Released Value or Full Value Protection — and what does Full Value Protection cost?
- 3What is your USDOT number and FMCSA registration, and can I verify it independently?
- 4What are the payment terms and what payment methods are accepted — is cash on delivery required?
- 5What is the committed delivery window, and what happens if delivery is delayed beyond that window?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.