Binding vs. Non-Binding Moving Estimate
Consumers who want to hire a professional moving company to help them relocate have two options for getting an estimate from the company: binding and non-binding estimates. Moving companies are subject to federal regulations, which require them to provide a written estimate of charges before they provide services.
Other People Are Reading
-
Background
-
About 40 million Americans move each year, according to the Federal Motor Carrier Administration. The FMCA has received increasing complaints about fraudulent business practices by moving companies, including that they charge a higher cost to the customer then what was originally projected.
Binding Estimate
-
A binding moving estimate is an agreement between the moving company and the customer that guarantees the total cost of the moving services based on services and quantities of possessions that are to be moved.
-
Non-Binding Estimate
-
A non-binding moving estimate is what the moving company believes the final cost of the move will be based on the estimated weight of the goods moved, and any additional services provided, such as packing or unpacking.
110 Percent Rule
-
All non-binding moving estimates are based on the "110 percent rule," according to the FMCA.This means that movers may charge their customers no more than -10 percent above the price given in a non-binding estimate.
-
