Long-distance moving companies let you choose between two types of moving estimates: binding and non-binding. In this week’s blog, we’ll attempt to describe the fundamental differences between those two types of moving estimates. If you have further questions, please ask your sales agent for clarification.
Long-distance estimates must be conveyed to you in writing; otherwise, it’s just talk. A binding estimate is a moving agreement that locks in your cost for the services to which you’ve agreed. A non-binding estimate, however, is just an estimate that requires additional information before your actual cost can be calculated. According to the federal government publication Moving Rights and Responsibilities, your choices are:
- Binding estimate. Your cost at delivery won’t change unless you adjust your items list or the services you require.
- Non-binding estimate. You won’t know your cost at delivery until your goods are weighed and your services are finalized.
What are the Characteristics of a Binding estimate for a Long-Distance Move?
Choose a binding estimate if you want to know exactly how much your move will cost before it occurs. “A binding estimate guarantees that you cannot be required to pay more than the amount of the estimate at the time of delivery,” according to Moving Rights and Responsibilities. If you want to know the cost of your move before it happens, select a binding long-distance moving estimate.
A binding estimate works for people who are certain of the items they’re moving and the services they’ll need. As soon as you sign the estimate, you’ll know the charges you’ll pay at delivery. Your mover can’t adjust the amount you pay unless you change your list of items to be moved or the services required and you approve a new estimate. The advantages to you of opting for a binding estimate include:
- Predictable cost. You can manage your budget because you know your cost.
- Easy to adjust. You can add or subtract services, items, or weight until the move.
- Reduced stress. You don’t have to worry about a sudden price hike at delivery.
What are the Features of a Non-Binding estimate for a Long-Distance Move?
Pick a non-binding estimate if you aren’t certain of your item list and of the services you need. “A non-binding estimate is not a guarantee of your final costs, but it should be reasonably accurate,” according to Moving Rights and Responsibilities. “The estimate must indicate that your final charges will be based upon the actual weight of your shipment, the services provided, and the mover’s published tariff.”
Non-binding estimates are the way to go if you need the peace of mind gained from weighing your goods. You’ll get a weight estimate, but your final weight won’t be determined until your goods are loaded onboard and your driver can stop at an official weigh station. The advantages to you of selecting a non-binding estimate are:
- Exact cost. You know how much it costs per pound to move your goods.
- No guesswork. You don’t have to rely on a computer program for your valuation.
- Weight tickets. You receive official proof of the weight of your goods.
Can I Make Adjustments to My Agreement After I Sign It?
Your movers should be prepared for you to make adjustments to your item list, which means changing your estimated charges. You can agree to a new estimate that covers your new item list, or you can add your extra items to the load by signing a new estimate that covers just those goods. You also can switch from binding to non-binding or vice versa. Remember, it’s all just an estimate until your goods are loaded on the truck.
You’ll also be able to adjust the services you require. For instance, if your elevator breaks down and we need to use the stairs, your estimate will require adjustment. Before your items are loaded onto the moving truck, you’ll be offered the chance to:
- Affirm the current estimate, whether it’s binding or non-binding, or
- Convert from binding to non-binding or vice versa, or
- Agree to a new or additional estimate, binding or non-binding.
How Much Am I Required to Pay at the Time of Delivery?
Federal law protects you against unreasonable monetary claims from moving companies that possess your goods. The moving company’s charge at delivery is allowed to exceed your written estimate only by a small margin that’s established by federal law. The weight-based amount due at delivery must be within either 10% or 15% of your written estimate, depending on which type of estimate you accept:
- Binding estimate. The most you’ll pay extra at delivery for an “impractical operations” charge is 15% when conditions require special equipment or extra labor.
- Non-binding estimate. A maximum of 110% of the final estimate can be collected at delivery. Any adjustments above the collected amount can be billed 30 days after your move.
Your sales agent will ask you if your move requires a long carry, a shuttle service, or other special accommodations. Please be honest, because if your moving truck can’t fit down your street, you’ll need a shuttle, and there’s no way around it. If you require extra services like a long carry or a shuttle that wasn’t included in your original estimate, you might be asked to revise your estimate.
The Choice Between a Binding estimate and a Non-Binding estimate is Yours to Make
Federal law lets you decide on the type of long-distance moving estimate that fits you best. Whether you agree to a binding estimate or a non-binding estimate, you’ll only have to pay a deposit before your move happens. The remaining amount is due at delivery. You’re protected against unreasonable price increases at delivery with either a binding estimate or a non-binding estimate. Even after you’ve agreed to a deal, it can be adjusted before your goods are placed on the moving truck.
Basically, a binding estimate assures you of your cost, while a non-binding estimate forces you to wait until your goods are delivered for a final price. Either way, your moving company sales agent must produce the best estimate possible under federal law. The choice between accepting a binding offer or a non-binding offer is completely yours. One of the simplest ways to view your choice is to select a:
- Binding estimate. If you are certain of your item list and the services you need.
- Non-binding estimate. If your items list or the services you need might change
