Hiring a moving company is a major decision, especially when relocating valuable belongings. One of the most overlooked aspects of choosing a moving service is insurance and licensing—two critical factors that can protect you from potential financial loss, damage, or fraud.
A reputable moving company should have proper licensing to operate legally and adequate insurance coverage to compensate you in case of damaged, lost, or stolen items. However, many customers either don’t ask for proof or don’t fully understand how these protections work.
This guide explains why licensing and insurance matter, the different types of moving insurance, how to verify a mover’s credentials, and what to do if a moving company damages your belongings. Let’s see what some experts like Safe Ship Moving Services say.
Why Are Licensing and Insurance Important for Moving Companies?
- Licensing Ensures Legitimacy
A licensed moving company must comply with federal and state regulations, ensuring they operate legally and follow industry standards. Hiring an unlicensed mover increases the risk of:
- Moving scams (where movers disappear with your belongings or demand extra fees)
- Lack of accountability (unlicensed movers don’t have to follow consumer protection laws)
- Poor service quality (no regulatory oversight means lower reliability)
- Insurance Protects Your Belongings
Even with the best movers, accidents happen. Without proper insurance, you could suffer financial losses if:
- Items get damaged during loading/unloading
- Boxes go missing during transit
- The moving truck is involved in an accident
- Workers mishandle fragile or high-value items
Having insurance coverage ensures that you can file a claim and receive compensation if anything goes wrong.
How to Check If a Moving Company Is Licensed and Legitimate
Before hiring a mover, always verify their credentials. Here’s how:
- Check Their USDOT Number (For Interstate Movers)
If you’re moving across state lines, your moving company must be registered with the Federal Motor Carrier Safety Administration (FMCSA) and have a USDOT (U.S. Department of Transportation) number.
If a company does not have a USDOT number, it is not legally authorized for interstate moves.
- Verify Local and State Licensing (For In-State Moves)
For local or intrastate moves, licensing requirements vary by state. You can check with:
- Your state’s Department of Transportation (DOT)
- Consumer protection agencies (such as the Better Business Bureau)
- State moving associations (like the California Moving & Storage Association)
- Confirm Memberships in Professional Associations
Reputable moving companies are often members of professional organizations, such as:
- American Moving & Storage Association (AMSA)
- State moving associations
- Better Business Bureau (BBB)
These affiliations indicate higher service standards and industry compliance.
Understanding Different Types of Moving Insurance
Most people assume that movers will fully compensate them for damaged or lost items, but that’s not always true. Moving insurance comes in different levels of protection, and knowing your options is critical.
- Basic Liability Coverage (Released Value Protection) – FREE but Limited
- What it covers: Pays only $0.60 per pound per item—regardless of the item’s actual value.
- Example: If your 50-pound TV (worth $1,000) is broken, you’ll receive only $30 (50 lbs × $0.60).
- Best for: People moving low-value items and willing to assume most of the risk.
- Full-Value Protection (FVP) – Higher Coverage, Extra Cost
- What it covers: The mover is responsible for repairing, replacing, or compensating for lost or damaged items based on their actual value.
- Cost: Typically 1-2% of the total declared value of your shipment.
- Best for: People moving expensive furniture, electronics, or antiques.
- Third-Party Moving Insurance – Extra Protection
- If you’re shipping high-value items, your best option is third-party insurance.
- Companies like MovingInsurance.com or Relocation Insurance Group offer policies covering the full replacement value of your belongings.
- Best for: People moving fine art, pianos, collectibles, or jewelry.
What Happens If Your Belongings Are Lost or Damaged?
If something goes wrong during your move, follow these steps:
- Inspect Your Items Upon Delivery
- Check for missing or damaged boxes immediately.
- Take photos of any visible damage before movers leave.
- Compare delivered items with your inventory list.
- File a Claim with the Moving Company
- Contact the moving company’s claims department ASAP.
- Most movers require claims within 30-90 days.
- Provide photos, receipts, and a description of the damage.
- Escalate the Claim If Needed
If the moving company refuses to pay, you have options:
- File a complaint with the FMCSA (for interstate moves).
- Report the issue to the Better Business Bureau (BBB).
- Hire a lawyer if the damages are substantial.
How to Choose a Moving Company with the Best Insurance and Licensing
To ensure a stress-free move, follow these best practices:
- Ask Direct Questions
When requesting quotes, ask:
- Are you fully licensed and insured?
- What types of insurance do you offer?
- What is your USDOT number?
- How do you handle claims for lost or damaged items?
- Get Everything in Writing
- Ensure the insurance policy details are in your contract.
- Get a written estimate that includes liability coverage.
- Avoid companies that refuse to provide proof of insurance.
- Avoid Red Flags
Be cautious if a moving company:
- Offers a suspiciously low estimate (it may be a bait-and-switch scam).
- Refuses to show proof of insurance or licensing.
- Has numerous online complaints about damaged items.
Conclusion: Protect Yourself When Choosing a Moving Company
Moving is stressful enough without worrying about damaged or lost belongings. Ensuring that your mover is licensed and properly insured is crucial to avoiding financial loss.
Key Takeaways:
Always verify a mover’s license using FMCSA or state agencies.
Understand the types of moving insurance and choose the right coverage.
Check reviews, complaints, and affiliations before hiring.
If something goes wrong, file a claim immediately.
By doing your research and choosing a licensed, insured, and reputable mover, you can ensure a smooth and worry-free relocation experience.
