Moving brokers vs. carriers: Which is right for your move?

Key points

• Moving carriers directly provide trucks, equipment and moving staff for all moves they book.

• Moving brokers are middlemen between carriers and clients, making damage claims and customer service less direct.

• Be wary of low estimates when getting quotes from a broker.

When planning a move, getting quotes from several companies is a crucial part of the process. But did you know that moving companies have different service models that could affect the quality of your experience?

While all moving companies must maintain a form of registration with the government, their authorizations will differ depending on their business models. A moving company can operate as a carrier, broker or combination of the two.

Moving carriers offer direct service for all moves they book, while moving brokers act as middlemen between clients and carriers, contracting services to separate companies. Some moving companies are registered as both, meaning they can provide direct service and contract out some tasks to third parties.

Your mover’s service model will also affect your payment process — including how much you owe upfront as a deposit — and determine who is liable for any lost or damaged belongings.

If you’re in the market for a local or long-distance move, it helps to understand the implications of working with a broker versus a carrier or a hybrid provider. We explain each one’s key positives and negatives below.

Moving carriers

Moving carriers directly handle all moving services they book. These companies are what people generally think of when they shop around for professional movers. When you hire a carrier, expect it to send in-house crews and moving trucks. Carrier-only providers also satisfy all add-on requests it offers, such as car shipping and antique moving, in-house.

Insurance and damage claims

Always consider the possibility of damaged or missing items when hiring movers. The federal government requires all moving carriers to provide a baseline level of coverage — called released-value protection — at no additional cost. This coverage reimburses 60 cents per pound per item if your movers lose or damage your belongings.

Beyond this, most moving carriers must provide a more comprehensive coverage option at an additional cost. This is called full-value protection or valuation coverage. For such plans, you’ll be able to set a maximum dollar amount of coverage or reimbursement for lost or damaged goods. Terms and conditions of these policies will vary and can range from providing the actual cash value of affected household goods to simply repairing them.

Note that such coverage is not technically insurance. Moving companies do not have the licensing necessary to sell insurance policies to their clients. However, it functions similarly. The Federal Motor Carrier Safety Administration (FMCSA) outlines moving coverage parameters, requirements and other consumer protection provisions on its site.

Pricing structure

Carriers take minimal deposits to secure moving dates on their calendars. Deposits, if required, usually won’t exceed a couple hundred dollars for local moves. You may have to pay a percentage of your total quote for long-distance moves.

However, many moving companies we’ve gotten quotes from in our research process have stressed that, as carriers, they take no deposits for any move, including long-distance relocations. 

For local moves, you’ll pay your total balance once the last item has been unloaded from the moving truck. Long-distance relocations often require paying half of the balance once your goods are loaded and the remainder at the delivery point. Always confirm a mover’s pricing structure before signing a written agreement.

Moving brokers

Moving brokers operate as middlemen between moving clients and carriers. Companies that work solely as brokers do not carry the necessary licensing to directly transport household goods. As such, they do not assume liability for your goods and often won’t provide customer service for clients after booking.

Insurance and damage claims 

If your movers lose or damage your goods during the move, you will not be able to pursue reimbursement through the moving or freight broker that booked your services. Instead, the shipper or carrier that performed the labor assumes all liability. Once your move begins, your assigned carrier will be the point of contact for all move-related issues. Always ask your broker which carrier will be handling your move.

Pricing structure

Even the most reputable brokers take large upfront deposits after the initial quote. This fee allows the broker to hold a date on its calendar and pay the administrative costs of scheduling your relocation with a carrier. This deposit often totals between 20% and 33% of your overall costs.

Most brokerages have cancellation fees. You’ll usually have to meet certain requirements — such as canceling at least seven days before your moving date — to get your full deposit back. Some brokers, however, will keep this deposit as a credit toward a future move; once paid, you will not be eligible for a refund. Ask your sales team representative about these policies when you book.

Registration requirements

All full-service moving companies have similar registration requirements. Brokers and carriers must carry active United States Department of Transportation (USDOT) and Motor Carrier (MC) numbers. Use these to check a moving company’s registration status on the FMCSA database before you book.

Entering these two numbers via the link above will take you to a company snapshot on the FMCSA’s website. There, you should be on the lookout for two fields: “Entity Type” and “Operating Authority Status.” 

Next to Entity Type, a company will have either “broker,” “carrier” or “carrier/broker” listed. Next to Operating Authority Status, a mover will either be listed as “authorized for property, HHG” (household goods) or “authorized for broker, HHG.” 

If a mover is listed as “not authorized,” it’s not legally allowed to operate as a mover and you should take your business elsewhere.

Which type of moving company should you hire?

We recommend booking moving services with a carrier when possible. Moving carriers offer the most direct customer service, better resolutions for loss or damage and easier access to shipment tracking for longer moves.

However, many long-distance moving companies and van lines operate as brokers or broker/carrier hybrids to provide the necessary range of services across all 50 states. This service model is even more common among international moving companies, which must partner with providers in other countries to offer efficient moves.

What red flags should you look out for when getting moving estimates?

The biggest red flag to look out for is a prohibitively low estimate. Getting at least three quotes from professional movers in your area can offer perspective on reasonable pricing for your move. When getting quotes, we recommend booking an in-home survey of your goods with a company representative to ensure your estimate’s accuracy. 

Next, you should always receive a written estimate and a hard copy of your move contract before you book. This should outline your pricing structure, deposit paid (if applicable), move date and services to be rendered. If your mover refuses to offer either, that’s a red flag.

Finally, trust customer reviews (to a reasonable extent) when booking moving assistance. Consult the Better Business Bureau, Google Reviews and social media when vetting movers. Avoid companies whose reviews consistently mention unreliable quotes or unresponsive customer service staff.

What’s next?

Now that you know the differences between brokers and carriers and how to check a mover’s operational status, getting quotes is the next step. Start the process at least six to eight weeks before your planned move date for maximum flexibility. We recommend requesting at least three professional estimates before signing a moving contract. Remember to get paper or email copies of any quotes you receive.

If you’d like more information, the FMCSA provides information about the key differences between brokers and carriers on its website.