Understand the differences between the types of estimates that are available
Types Of Estimates
There are three types of estimates commonly used within the moving industry: Non Binding, Binding and Binding Not to Exceed.
It is required by law that any interstate moving company, provide to their customers an estimate in writing. When receiving the estimate, the moving company should specify which type of estimate they are providing, non-binding, binding, or binding not-to-exceed. If it is not clear, make sure to confirm. In addition to the estimation of belongings, the estimate must also include transportation charges and any extra services. This estimate is not a contract and only an estimation of cost.
Before signing any contract with a moving company, it’s important to research and understand the differences between the three types of estimates, and find which one is right for your move.
Non-binding estimates are based on your inventory and any services performed. The moving company will provide an estimate on what they think the final price will be. If the actual weight and services are less than the written estimate, you will pay less. If the weight and services exceed the given estimate, you will be required to pay the difference.
If the final price is higher, interstate moving companies are allowed to collect up to 10% above the written estimated price, on or prior to the date of delivery. The remaining balance does not need to be paid until 30 days after delivery of your items.
A binding estimate is essentially a “fixed price”. You agree to pay the amount quoted by the moving company for transportation of your items, regardless of the actual weight. Whether your items weigh more or less than what has been quoted in the binding estimate, you acknowledge paying the final price.
The benefit of a binding estimate is that you know exactly how much your final bill will be. One exception that it may change is that come moving day, you decide to have the moving company pack your belongings. This will be an added service on the final bill.
Binding Not To Exceed
A binding not to exceed estimate can also be referred to as a guaranteed quote. You either pay the estimated price or the actual price, whichever is less. A binding not to exceed estimate can never go above the estimated price, even if the weight is calculated as more than the original written estimate.
Binding not to exceed estimates are a preferred choice by many customers and allow you to know that come moving day, the final bill may in fact be less than what was quoted on the original written estimate.
Now that you have researched the differences between the three types of estimates, non-binding, binding and binding not to exceed, you will be familiar with all the terminology used within each of the quotes. Thoroughly read through any estimates you are receiving to make sure that you and the moving companies are clear on which type of estimate you would like to use for your move.