How to Spot Red Flags When Hiring a Moving Company
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Reading time: 11 minutes
You’ve decided to hire professional movers for your upcoming move. Now, comes the important task of finding trustworthy and reliable movers! Unqualified moving companies tend to attract customers with extremely low prices, but usually lack insurance, a license, and a team of movers with years of experience.
The main red flags to watch out for when hiring a moving company are:
- Not properly licensed
- Not insured
- Very low cost and non-binding estimates
- Poor or few reviews
- No valuation coverage
- Upfront payment required
Not Properly Licensed
If you’re hiring movers for an interstate move, the company is required to be licensed with the United States Department of Transportation. Ask for the company’s U.S. DOT number to look them up in the FMCSA’s system. Keep in mind that local moving companies who move customers within the same state will not be regulated by the U.S. Department of Transportation. Instead, they will be regulated by the state. So, if you’re hiring local movers, check to make sure the company is properly licensed with your state.
They're Not Insured
Uh oh! If the moving company isn’t insured, it’s likely that they are not legitimate movers. Professional moving companies should be insured in order to protect themselves from potential lawsuits, as well as pay customers back for any damaged goods. If the company lacks insurance, it won’t be able to pay customers back in the event of lost or damaged items.
A “Too Good To Be True” Estimate
Be wary of “too good to be true” estimates, or, if the moving company gives you a quote without taking your inventory. Many scams start with a very low estimate and usually double or triple by the end of your move. In order to receive an accurate estimate, make sure the moving company performs either an in-person inspection or a video survey of your belongings.
The Company Only Offers Non-Binding Estimates
Take notice if the moving company only offers non-binding estimates, opposed to binding or binding not-to-exceed estimates. This may be a sign that the mover intends to rip you off. A non-binding estimate is a quote based on the estimated weight of your belongings. However, your final price will change depending on the actual weight of your inventory. This makes it easy for movers to give you a low-ball estimate at the beginning, only to serve you an unexpectedly high bill at the end. Instead, hire a moving company that offers either a binding estimate or a binding not-to-exceed estimate — both of which ensure the cost of your move will not end up exceeding the original cost estimate.
Poor or Few Reviews
While the occasional bad review is to be expected with any service company, a lot of negative reviews shouldn’t be ignored. Pay attention to review sites, or ask friends for recommendations. To check out moving company reviews, visit Moving.com and click on the Moving Company Directory. The directory includes customer reviews for more than 600 moving companies nationwide. These reviews also include the moving company’s U.S. DOT number, specific services the company offers, the company’s fleet size, Better Business Bureau ratings, and any official complaints filed with the FMCSA. Moving.com also will provide information on whether the moving company belongs to the American Moving & Storage Association.
The Company Doesn’t Offer Valuation Coverage
Most fraudulent moving companies will not offer valuation coverage. Moving companies must offer valuation coverage in order to protect their belongings. Valuation coverage is not the same as moving insurance, as it holds the movers responsible for a part of your shipment. According to the FMCSA, interstate movers are required by law to offer two types of liability options: full value protection and released value.
Movers Who Demand To Be Paid Up Front
If the moving company demands to be paid a large amount of a deposit or the full amount upfront, it most likely means they are a fraudulent company. Reputable moving companies always charge the customer after their goods have been shipped to their final destination. Otherwise, the movers could take your money and run!
Protect Yourself From Moving Company Scams
Awareness of moving company scams is essential to ensure a smooth and secure relocation. Our moving company prioritizes your safety, so we offer comprehensive moving services.
Scam moving companies only want one thing, to take your money. Unfortunately, moving scams have become relatively common in our industry. If you are not careful enough, they will use your time and money, creating many other problems along the way.
That may lead to loss and damage to your valuable belongings. We understand the significance of your move and are committed to protecting you from such fraudulent practices.
How to Avoid Moving Scams?
As we previously stated, moving scams can genuinely be a distressing experience. Still, with the proper knowledge and precautions, you can protect yourself and ensure a smooth relocation. We are here to share some valuable tips for you:
- Do your research – Read reviews, check company credentials, and verify licenses and insurance. Look for trustworthy, well-established companies with a solid reputation in the industry.
- Pay attention to MC and USDOT numbers – Remember that both numbers need to be active and fully operative.
- Check credentials – You will need proof that a moving company is appropriately licensed and ensured. You can verify their credentials with the Federal Motor Carrier Safety Administration (FMCSA).
- Get several estimates – Your moving estimate may vary from one moving company to another. That’s why you should compare the estimates and evaluate the services offered to make the right decision.
- Avoid companies that don’t do video surveys – Trustworthy companies usually offer professional virtual survey estimates. If the company refuses to do that, think twice before booking them.
- Read all the terms and conditions – Before you decide to sign the agreement, no matter how boring it may be, first read all terms and conditions. By doing this, you are prioritizing your safety and the safety of your belongings.
- Get everything you can in writing – Estimates, contracts, and additional fees should all come in writing. Documenting things can help you in case of any legal issues.
Special tip – These tips are general guidelines and may not cover every possible scenario. It’s essential to exercise caution, do thorough research, and consult legal or professional advice if and when needed.
We Are Your Trusted Partner For a Seamless Move
We are well aware of the circumstances surrounding moving scams and the importance of choosing a responsible moving company. Fraudulent activities exist in the moving industry, and trusting customers can fall victim to unscrupulous and unethical procedures. These tips can help you distinguish scam moving companies from real ones.
If you choose us to handle your move, you can be sure you are partnering with a reputable and trustworthy moving company. Leave the worries behind, and let us handle your move with care and professionalism.
Don’t hesitate to contact us today to schedule your relocation and learn more about our moving services.
