Moving was listed among the main causes of stress on WebMD.com and with good reason. There are so many ways that moving can generate stress, but one is especially nerve-racking: Hiring a professional mover.
Like many sectors that cater to customers in stressful situations, the moving industry is a magnet for scam artists and swindlers. These shady schemers prey on people’s uneasiness during the moving process and give the many legitimate moving companies a bad name.
Three of the most common scams are as follows:
Items Being Held Hostage: This is when movers get a hold of your stuff and then refuse to deliver it back to you unless you pay them more. Sometimes they will only bring a few of the items and charge you more for each additional shipment.
Stolen Stuff: Criminals sometimes like to pose as movers so they can obtain your property in a low-risk way that doesn’t involve violence. These kinds of scammers are usually easy to spot, because they don’t have valid paperwork and there are no reviews of them.
Excessive Hidden Fees: Some disingenuous movers provide a certain quoted price and then upon delivery they add a slew of unexpected fees for services you didn’t need or request. They are banking on the fact that you want to get the move over with and aren’t willing to fight the charges.
While it can be difficult to discern the difference between reputable moving companies and those out to rip you off, there are a few precautions you can take that will all but ensure that the moving company you choose is genuine.
Follow these tips and you can scratch at least one stress-inducer off your moving checklist:
If you are doing a a cross-state move, then visit the U.S. Department of Transportation and look up the company’s USDOT number in their searchable database. Interstate moving companies are required by law to obtain USDOT numbers, so if the company you are considering doesn’t have one, that’s a major red flag as they are operating illegally.
Many states also require moving companies to obtain a special license in order to operate legally within the state. When you are considering potential movers, always verify that they are licensed to operate legally within the state before proceeding. Most states have searchable online databases that you can use to confirm whether a moving company is licensed or not, but you can also usually call or visit the state’s department of transportation to get licensing information.
The Federal Motor Carrier Safety Administration has a good list of phone numbers for every state that will lead you in the right direction. While not a guarantee, it’s much less likely that a state-licensed company will be a scam.
Along with being required to have a USDOT number, moving companies that operate across state lines are also forced by federal law to offer two different liability insurance options.
The first insurance option is called Full Value Protection and means that the mover is responsible for the replacement value of any lost or damaged goods. If there is a lost or damaged good, the mover must either repair the item, replace it with a similar item or reach a cash settlement with the customer, if it is considered to be of “extraordinary value”. “Extraordinary value” is defined as an item whose value exceeds $100 per pound.
The cost of Full Value Protection coverage varies by mover and depends on the deductible you agree on. A deductible means that the mover doesn’t have to pay out anything until the deductible is satisfied. For example, if you have a $500 deductible, then the mover wouldn’t be responsible for paying you for lost or damaged items until their value exceeds $500. Generally, the higher the deductible is the cheaper the insurance will cost, but your risk will increase because if items are lost or damaged then you won’t recoup anything until deductible is met.
The second insurance option is called Released Value. Released Value protection is free of charge, but provides very limited coverage. Under this plan, the mover is only liable for 60 cents per pound per item. For lightweight items that are expensive, this provides very little protection. Imagine you have a $1,500 laptop that weighs 5 pounds and it gets damaged. You’d only receive $3 in compensation.
For those doing intra-state moves, it is imperative that you check your state’s laws regarding moving company insurance requirements. It is standard for states to require moving companies to have some sort of insurance, but the details are by no means uniform for every state. Regardless, you want to stay away from moving companies that don’t clearly spell out and identify their insurance policies and allow you to read through them.
The Better Business Bureau is a tremendous resource for looking up moving companies. While not foolproof, the organization generally does an excellent job of providing grades, reviews and statistics on moving companies. It’s possible that some very small or new moving companies might not appear on the site, but any reasonably sized moving company or one that has been around a while should be listed. If it’s not, then that is a potential red flag.
As a basic rule of thumb, you’ll want to avoid any moving company that receives a grade of C or worse from the BBB. There are just too many better options than to settle for such a poorly rated company. Even if a company receives a grade of B- or better, it still makes sense to look at the site’s rundown of the complaints that have been received against them. If you spot a pattern that makes you particularly uncomfortable (for example, repeated allegations of stolen electronics if you are moving a bunch of electronics), then you’re probably better off picking another company.
Some states such as California require in-person inspections to be done before a written estimate can be provided, but regardless whether your state has a similar stipulation, it’s almost always a good idea to request one. It’s impossible for movers to provide a reasonably precise estimate, unless they can actually see everything they are moving. Asking for a ballpark figure over the phone or online is a good way to start the process, but it’s not wise to make your final decision based on that proposal.
The one caveat to that is if you are considering using a brand new moving company that doesn’t have the proper credentials. In that case, you’ll want to be very careful about inviting them for an inspection, as they could just be criminals or thieves looking to steal your stuff.
Obtaining a “Not to Exceed” price is crucial when shopping for professional movers. A “Not to Exceed” price is a commitment in writing from the mover that they will not charge you more than that agreed upon price (assuming you don’t add to the load or request more services at the last minute). This gives you some legal protection against the movers holding your items hostage while they try to coerce you into giving them more money.
One of the easiest ways that underhanded moving companies can take advantage of you is by packing your stuff without tracking it properly. If there is no checklist of items shared between you and the mover then it’s nearly impossible for you to know if anything was swapped or stolen. Furthermore, even if you were able to remember every single detail of every item you had moved, without a shared inventory sheet signed by both parties, you have no proof to back up your claim if something was swapped, stolen or even damaged.
Another thing to keep in mind is that the inventory sheet should be very clearly marked and organized. Don’t let the mover sneak out an item without first numbering it and including it on the checklist, because that’s an easy way for them to get away with stealing it.
Some consumer watchdogs recommend not using any moving companies that require a deposit, but that is a bit excessive. There are plenty of legitimate moving companies that do require a deposit, because they can’t afford you to cancel on them at the last minute and lose out on other potential clients in the meantime.
All of that said, the deposit should be small. You should never give a mover the entire payment up front and you should think long and hard before giving them anything more than about 25 percent of the payment. Paying for too much upon pick-up gives little incentive for the mover to successfully complete delivery.
It’s perfectly acceptable for moving companies to charge for certain services like packing your stuff for you, providing extra materials for fragile items or unpacking everything upon delivery. Some moving services might even offer cleaning services or other types of add-ons.
Where it becomes problematic is when they try to nickle and dime every single thing in an effort to drive up the bill without your approval. Examples of this are when they start charging ridiculous fees for tape or insist on packing every item into its own small container so they can charge you for more both labor and boxes.
