The Three Different Kinds of Moving Estimates Explained

Do the moving terms “non-binding estimate,” “binding estimate,” and “binding not-to-exceed estimate” mean anything to you? Probably not. Unless you’re a moving professional well-versed in the industry’s lingo, it’s easy to get tripped up over these seemingly insignificant details.

However, understanding the ins and outs of your moving estimate is crucial to a successful move. For this reason, I never recommend blindly agreeing to a moving quote or signing a contract without thoroughly doing your research on the type of estimate offered first – including its pros and cons.

Given all of the other hassles that a move entails, though, we understand that most people simply don’t have the time to decipher a confusing cost estimate. Fortunately, we’re here to explain the three different types of moving estimates – non-binding, binding and binding not-to-exceed – for you. This way, you can make a better, more informed decision when signing your next moving contract.

Non-Binding Estimate

When movers give customers a non-binding estimate, this is a quote based on the weight of the customer’s belongings. However, because it is “non-binding,” this estimate is not set in stone and will most likely change depending on the actual weight of the move.

In general, I don’t recommend hiring a moving company that provides this kind – and only this kind – of estimate to their customers. The reason? Saying “yes” to a non-binding estimate could set you up to pay more than expected. That’s because if a mover gives you a low-ball, non-binding estimate, but your final bill ends up being higher, you’ll have to pay the original estimated price plus an additional 10 percent on top at the time of delivery . This will happen if your belongings end up weighing more than expected.

However, according to the FMCSA (Federal Motor Carrier Safety Administration), customers will still have to pay for charges due on the total shipment. The agency points out that the mover can (and will) bill you for the remaining charges after 30 days from delivery. So, in essence, you’ll have a month to cough up the difference.

Bottom line: those moving should be wary of the non-binding estimate. Rogue movers and scam artists may reel you in with a too-good-to-be-true non-binding estimate. But, when it’s all said and done, you could be forced to pay more than originally expected. That’s why it’s so important to research a mover beforehand and to be aware of red flags, such as this one.

Binding Estimate

A binding estimate is when the mover guarantees a fixed cost estimate based on the approximate weight of the customer’s belongings. If the customer agrees to a binding estimate, then they will pay exactly what they were originally quoted. The mover will not be allowed to ratchet up the price whatsoever. However, agreeing to a binding estimate also means that the customer won’t pay any less either. If their belongings end up weighing less than was originally estimated, they will still have to pay the fixed cost.

While not the most ideal choice, a binding estimate does have its advantages. For one, if you’re concerned about a mover over-charging you at the last minute, you won’t have to worry (unless, of course, they over-charge you at the beginning). To make sure you’re getting a fair binding estimate, I recommend obtaining quotes from multiple movers to compare. Another advantage of choosing a binding estimate is that if your belongings do happen to exceed the estimated weight, you won’t have to worry about paying the high price. This peace of mind certainly appeals to many who are moving.

However, if you’re thinking this type of estimate will allow you to sneak additional items onto the truck on moving day, you’re wrong. According to the FMCSA, if you decide to add items to your shipment then you and your mover must either: agree to abide by the original binding estimate, negotiate a new binding estimate or convert the binding estimate into a non-binding estimate.

Binding Not-To-Exceed Estimate

Out of all of the different types of estimates, the binding not-to-exceed (sometimes called a “guaranteed not-to-exceed”) estimate tends to be the most popular with customers making an interstate or long distance move. It also happens to be the easiest to explain. This type of estimate means that even if the weight of a customer’s shipment exceeds the original estimate, they won’t be charged anything extra. Instead, they’ll pay what they were originally quoted. However, if the shipment weighs less than originally estimated, they will only have to pay for the cost of shipping the actual weight. This means if you agree to a binding not-to-exceed estimate, you could end up paying less than originally agreed upon.

What’s in the estimate?

When receiving a contract from your movers, they should be very clear about what type of estimate they are sending you. This estimate should also be attached to your Bill of Lading contract. A long distance contract should include: the name and address of your mover, the tariff cost, miles traveled, minimum weight and estimated weight, any discounts applied, packing and unpacking service fees, storage charges, transportation charges, fuel surcharges, insurance surcharges, and accessorial services.

When evaluating the overall cost of your move, be sure to also consider the costs outside of the moving estimate from your moving company. For instance, if you’re planning to purchase cardboard boxes and moving supplies, you’ll want to take these into account. Also, keep in mind that the time of week, month and year can end up affecting the cost of your move. For instance, if you’re moving during “peak moving season” (May to September), you’ll most likely end up paying more. The same goes for moving during the holidays, moving on a weekend, and moving at the beginning or end of the month. So if you can, try to move during a weekday during a less busy month to keep costs down.

Ready to move?

You’ve found your dream home and sold your old home – and now, it’s time to move! Don’t let just any mover handle your upcoming relocation. To find trustworthy moving professionals to move your belongings, check Moving.com’s extensive network of reputable and reliable movers . All relocation companies in our network are licensed and insured, so you can rest assured that your move will be in good hands. Good luck and happy moving!