Binding vs Non-Binding Moving Estimates: What Each One Guarantees
A binding estimate fixes the price for the goods and services written on it. A non-binding estimate is the mover's best guess, and the most you can be made to pay at delivery is 110 percent of that guess. Both must be in writing and say which type they are.
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Why the estimate type matters most
When people compare moving quotes, they compare totals. The more important comparison is the type of estimate behind each total. Under the federal rules for interstate household goods carriers, an estimate is either binding or non-binding, and the two behave very differently on delivery day. The same total can be a promise in one case and a forecast in the other. This guide explains the difference using the federal consumer rules in Part 375 plus the rights booklet every mover must give you, and it covers interstate moves only. Part 375 does not govern a local move within one state, so ask the company what kind of estimate it offers and on what terms.
What both types have in common
Before a bill of lading is executed, section 375.401(b) requires the mover to provide a written estimate of the total charges and to say whether it is binding or non-binding. A verbal quote does not count; the booklet says so directly. The estimate is supposed to rest on a physical survey of your belongings, which can be done on site or virtually, unless you waive it in writing before loading (375.401(a)). You and the mover both sign the estimate, and you receive a dated copy when you sign (375.401(h)). The mover must also name the form of payment it will honor at delivery (375.401(c)), and the estimate becomes an attachment to the bill of lading.
Binding estimates
Section 375.401(b)(1) describes a binding estimate as an agreement made in advance that guarantees the total cost of the move based on the quantities and services shown. Its face must say that the mover and the shipper are bound by the charges, and that the charges apply only to the services identified in it (375.403(a)(4)). The mover may charge a fee for writing one.
At delivery, the maximum a mover may demand on a binding estimate is the exact estimate, plus charges for any services you requested after the bill of lading was issued, plus charges for impracticable operations if they apply (375.703(a)). Impracticable operations are conditions that make normal pickup or delivery physically impossible with the usual equipment, as the booklet defines them, and the amount collectible at delivery for them is capped.
Non-binding estimates
A non-binding estimate is what the mover believes the total will be, based on estimated weight or volume, the services requested and the survey. The final charges come from the actual weight and the tariff in effect (375.401(b)(2)). A mover may not charge for providing one. The estimate has to say on its face that it is not binding and that the most you can be made to pay at delivery is 110 percent of the estimate (375.405(b)(5)). That is the delivery limit: the mover must hand over your goods if you pay up to that amount, plus any added services and capped impracticable operations (375.407). Anything above it can be billed after delivery, and the booklet says the remaining charges are billed after 30 days.
Because the final price depends on weight, the mover must weigh the shipment on a certified scale, give you the chance to watch each weighing, and attach the weight tickets to the bill (375.507, 375.513, 375.519). If an estimate was by volume, the mover must explain in writing how volume converts to weight (375.401(e)).
Side by side
| Question | Binding | Non-binding |
|---|---|---|
| Is it in writing and signed? | Yes | Yes |
| What is guaranteed? | The total for the goods and services listed | Nothing; it is the mover's approximation |
| Can the mover charge for it? | Yes, a fee is allowed | No |
| Does weight change the price? | No; weighing is not required | Yes; certified scale and weight tickets |
| Most you can be made to pay at delivery | The estimate, plus added services and capped extras | 110 percent of the estimate, plus added services and capped extras |
What changes on moving day
Both types can change before loading and never after. Section 375.401(i) allows an estimate to be amended by mutual agreement before loading, and not after. If you add items or services, the mover is not required to honor the estimate, and if the two of you cannot agree it need not move the shipment. If it does, then before loading it must reaffirm the estimate or prepare a new one that lists the added items in detail and that you sign. With a binding estimate, the third choice is to agree in writing to treat it as non-binding (375.403(a)(6)). Once the truck is loaded, failing to sign a new estimate means the original is reaffirmed, and the mover may not collect more than that estimate, or more than 110 percent of it for a non-binding one (375.403(a)(7), 375.405(b)(8)).
Worked example: the same total, two outcomes
Suppose two estimates for your move each show the same written total. One is binding, the other non-binding. The goods weigh more than the mover guessed.
On the binding one, the extra weight changes nothing at the door. You are asked for the estimate, the services you added after signing, and any capped extras. On the non-binding one, the final charge rises with the weight, but you can be required to pay only up to 110 percent of the written total at the door. Say the written total is 4,000 dollars, a round number chosen only for the arithmetic: 110 percent of that is 4,400 dollars. The rest is billed later. Neither situation is a trick, but only the first guarantees the number. If you are on a tight budget, the guarantee may be worth the fee the mover is allowed to charge for it.
How to choose
Ask each company for both types if you can, and compare. A binding estimate suits a move where your inventory is settled and you want a firm number. A non-binding estimate can be fine, particularly for a smaller or uncertain load, if you leave room for the worst case. Whichever you pick, do not sign pages with blanks. The booklet says the only gaps tolerated are the actual weight on a non-binding move and unforeseen charges. If a mover refuses to unload after you offer the amount the rules allow, the booklet gives FMCSA's number for that situation. For help with a dispute, a lawyer can advise you. This guide explains the rules and is not legal advice. See also the questions to ask movers and the red flags checklist, and the guide on valuation and liability.