Often consumers receive estimates from movers or shippers on their interstate or international move. Do they understand the estimate they were given? Do they know what the type of estimate is? And what is the service they are paying for?

 Here, in My Moving Guide, we breakdown the services and estimates to provide a more thorough explanation of the information you're receiving. There are 3 types of estimates that are common in the moving/ shipping industry;

- Binding
- Non Biding
- Binding Not to Exceed

1. An alternative title for a Binding Estimate would be a "Fixed Price" agreement. This type of estimate inquires that you agree to pay the fixed amount of the binding written estimate and that the actual weight is irrelevant. Honestly stated, this is considered the most "fair" type of estimate. The Fixed Price is based on the estimate that the customer has received by the moving company hired for the job. For example, if the estimate is based on 3500 lb, the company and the customer both agreed to the price for the 3500 lb which yields the Fixed Price. The risk to the consumer is that the estimator could highball the estimate to get extra money for pounds that don't exist. The risk to the moving company is that the consumer could sneak in lots of extra items that were not included on the original estimate. The risk to the mover is much less than the risk to the consumer, because the truck driver has the right to "challenge" the binding estimate on loading day if he thinks that the estimate is too low.
2. In a Non-Binding estimate, you agree to pay for the actual weight based on a set price per pound. The final bill could be higher or lower than the original written estimate, depending on the actual weight/ linear feet. If the bill is higher than the estimate, the mover can collect up to 10% – 15% extra on top of the amount specified in the non-binding estimate on the date of delivery. This can occur if the shipping company provided an onsite survey which the customer completed for the company with the exact information he wishes to take. If the customer added another room of goods, one that was not included in the original, the customer will be charged for the additional weight or volume added. Then (the company) is required by law to make full delivery of your goods.
3. A true Binding Not-To-Exceed estimate means that the customer or the company cannot exceed from the written agreement. You still pay for only the amount of the agreed price on the agreed weight. But if your actual weight is less than the estimate, then you pay less than the amount of the estimate, according to your actual weight times the agreed upon price per pound. So, a binding-not-to-exceed estimate can only get lower, not higher.

Often consumers looking for a moving company don't realize that there are other types of estimates than what they are receiving from companies. There are actually three types of estimates that are common in the moving industry that every consumer looking for a moving company should be aware of.