Moving Company and a Moving Broker

What’s the Difference Between a Moving Company and a Moving Broker?

As you start to plan your relocation, you have some important decisions to make, and as soon as you start looking for moving quotes, chances are you will be overwhelmed with calls or at least emails from moving vendors. This isn’t a bad situation—it’s helpful to have access to all the information you need to make the right decision, and plenty of options. But it will be easier to navigate the flood of offers and choose the right moving company if you know your options.

What’s the difference between a moving company and a broker?

Quite simply, a moving company moves the possessions of a family, individual, or company from one place to another. A moving broker is a company that arranges for the move to occur, hiring a carrier to perform the actual relocation. A broker does not move anything but is a middleman or facilitator. You may be familiar with an insurance broker, which has agreements with several different insurance companies and will “shop” around to see which company can offer the best price for your situation. A moving broker should operate the same way, maintaining written agreements with several moving companies and van lines, and determining which one can offer the best fit with your move requirements.

A broker can save you time and effort. If you talk to a broker, you can go through the details of your move one time, and let the broker take care of the footwork on your behalf. The broker can then interact with several movers to identify the one that can meet your needs, accommodate your schedule, and offer the best price for the services you need. A broker can screen out potential movers that can’t help you—for example, if you need storage at the destination, there is no sense talking to a local mover that cannot provide that service. If your destination residence has a long carry or requires a shuttle vehicle, the broker can identify movers that offer reasonable rates for those ancillary services. A good broker will look for the moving company which is the best match for your move. The broker can arrange for the top choices to conduct a physical survey of the goods to included (remember, this is required) to validate the estimate.

Are moving brokers regulated?

Yes. Like moving companies, brokers that arrange for interstate moves must register with the FMCSA (Federal Motor Carrier Safety Administration) and adhere to their requirements. In addition to registering, these requirements include:

  • Providing the customer with the two documents that the FMCSA considers critical—the Your Rights and Responsibilities When You Move”  booklet and the Ready to Move”  brochure.
  • Maintaining written agreements with the moving companies they engage.
  • Only working with FMCSA registered moving companies.
  • Using the individual tariff of each moving company to create the estimates they provide to potential customers for that company.
  • Acknowledging in advertising that they are a broker, not a carrier, and display their DOT registration number. They must also state the physical location of their business.
  • Verifying that the mover that is providing the service conducts a visual inspection of the household goods included in the move as long as the residence is within 50 miles of the mover.

As with moving companies, the FMCSA maintains records on complaints lodged against brokers by consumers. This is a resource you should investigate before engaging the services of a broker. While most brokers operate with integrity and provide a valuable service that may save you time, you don’t want to get tangled up with a disreputable one and end up disappointed.

It is unfortunately easy for dishonest companies to appear to be successful, prosperous brokers representing multiple carriers. Brokers can “seed” local Yelp review sites with fake or incentivized praise, and when one identity gets burned, it is a simple matter to change names and start fresh. The FMCSA and the national Better Business Bureau reported an increase in the incidence of movers and brokers receiving complaints about low-ball estimates with goods then held hostage for payment of increased and exorbitant bills. In 2018 the US Department of Justice prosecuted a Florida-based shell company that operated a series of brokers and carriers that constantly changed names and locations as it tried to outrun the complaints.

Should I use a broker?

Moving long-distance is expensive and time-consuming. The average interstate move cost is around $4500 for a move of just over 1200 miles. If you find a broker you trust to connect you with the best moving company for your circumstances, you may be able to save time and money. Just remember, they are in it for a profit, and it is up to you to be diligent in safeguarding your interests. More than 5900 consumers filed moving fraud complaints with the FMCSA in 2018. In most years, over half of the complaints about moving and storage companies involve overcharging. 7 % of claims are about “hostage loads,” in which the moving company refuses to deliver the shipment unless the consumer pays a hugely inflated charge. And the BBB estimates that as many as 90% of issues with moving companies remain unreported.

That doesn’t mean that you can avoid fraud by using a moving broker—it just means that whatever way you go, it is up to you to take responsibility for making sure you end up with an honest, reliable mover. A broker can help you, or not.

How can I protect myself against rogue brokers?

If you decide to use a broker to facilitate your move, ensure that the one you choose is registered with the FMCSA. Check with your local BBB and your state consumer protection agency. Recognize that a broker does not perform the actual move—they arrange for it, and they may have a profit motive which influences which mover they select. Don’t neglect to do your homework based on the recommendation of the broker.

Never sign blank documents or documents you don’t understand. The estimate should identify the moving company and include its tariff (an explanation of all charges and rules the movers and packers use to conduct business). A broker will have this available for you, and the mover will provide a comprehensive inventory along with the estimate for your protection. Ensure that you know whether your estimate is binding or non-binding and what additional charges you may be required to pay to ensure the delivery of your goods.

If the moving broker is asking for a large deposit, that is a red flag. One of the common broker scams is requesting a deposit that the consumer believes will be subtracted from the estimate. When the movers arrive to load the household shipment, they present the shipper with a bill of lading that does not include mention of that deposit, which was taken by the broker as payment. The mover may also demand a higher price at the time of loading, or claim that the inventory was incomplete, thus justifying a higher price. If something seems off, refuse to allow them to load your goods. It could be a scam.