Deposits are a common practice when hiring a moving company, as they ensure commitment and help set the moving schedule. They are deducted from the final moving costs.
Moving deposits can be refundable or non-refundable, depending on factors such as cancellation notice and presence on the moving day. It is essential to check the deposit policies of different moving companies.
A reasonable movers’ deposit typically ranges from $100 to $500, depending on the size of the move. Payments should be made with checks or credit cards to facilitate dispute resolution.
Read on to learn everything you need to know about moving company deposits.
Oftentimes, you’re going to need to hire a reputable moving company to help you protect and transport your belongings from one home to another.
And oftentimes, when you’re about to book the services of a professional mover, you will be asked to put down some money to secure their service for the move-out date of your choice.
You shouldn’t panic. Most moving companies in the country charge a moving deposit to reserve a moving date, especially during the peak moving season (May – September). This is standard practice so you shouldn’t think that you’re being scammed in any way – at least in most cases, you won’t be.
This being said, understanding moving company deposit policies – the purpose of the deposits, their types, and the factors that influence the deposit amounts will help you avoid any serious mistakes when you’re dealing with local or long-distance movers.
Read on to learn everything you need to know about moving company deposits. Also, you will learn how to stay out of trouble by identifying the warning signs of fraudulent moving companies when it comes to deposits.
What is a moving company deposit?
First things first – you need to know what a moving company deposit is and why you will often get asked to pay it when using the services of a professional mover.
A moving company deposit is an advance payment to a moving company to secure their moving services for a specific date and time.
In reality, a deposit serves several important purposes at once: reservation, commitment, financial security, and a sign of trust.
Why do you have to pay a deposit to a moving company upfront, way before they have even done something to earn that money?
Why can’t you just pay the entire sum you owe them after the move is complete?
What if you give money to your movers beforehand and they try to scam you later?
The moving company deposit acts as a commitment from both parties.
The thing you need to understand is moving companies requesting deposits from their customers in advance is perfectly legal and there’s nothing wrong or suspicious about it.
The request for a moving deposit has become standard practice and even the best moving companies in the country ask their clients for an advance payment for booking their services.
This is all true unless a mover requests a large sum of money in advance, usually cash – later in this article we’ll discuss the warning signs of fraudulent movers (rogue movers) and how you can protect yourself against such a moving scam.
So, why do movers require deposits? What’s the purpose of a moving deposit?
Reservation. A deposit ensures that the moving company allocates the necessary resources, such as trucks and staff, for your move on the agreed-upon date.
Commitment. The deposit acts as a commitment from both parties. It shows your seriousness (as a client) about using the moving service and compels the moving company you have chosen to honor their agreement to provide the service.
Financial Security. A deposit gives the moving company some degree of financial security if you, as their client, decide to cancel or change plans. In such a case, the deposit should cover some of the losses or expenses the moving company is likely to incur as a result of your move cancellation.
Trust. Another purpose of a moving company deposit is to build a sense of trust between you and the company since both parties will have a financial stake in the deal.
Simply put, a deposit is a moving company’s protection against last-minute cancellations and no-shows.
Types of moving company deposits
Moving company deposits can vary depending on the company’s deposit policies and the nature of the move.
Here are some common types of moving company deposits:
Flat fee deposit. A flat fee deposit means that you will need to pay upfront a fixed amount regardless of the total cost of the move.
Percentage-based deposit. This moving company deposit is a percentage of the total estimated cost of the move. Usually, moving companies require a 15-20% deposit based on the estimated total cost.
Sliding scale deposit. The amount of this moving company deposit will vary based on certain factors such as the distance of the move, the volume of household items, or the time of year. As a rule of thumb, a residential move during peak moving season is likely to require a higher deposit to book the services of a top-rated moving company.
Refundable deposit or non-refundable deposit. Some moving company deposits are refundable if the move is canceled within a certain period – usually within 2 weeks. Other moving deposits, however, may be non-refundable regardless of the circumstances. So, you must ask the moving company you’ve hired whether the deposit they request is refundable or non-refundable.
Credit toward total cost: In the majority of cases, the moving company deposit is applied as a credit towards the total moving cost. For instance, if you pay an advance payment of $400 as a deposit to your mover and the total moving cost amounts to $2,400, you will still need to pay $2,000 at the time of the move.
Reservation fee: Similar to a flat fee deposit, this is a fee paid to a professional moving company to reserve a specific moving date and time. Keep in mind that the reservation fee may be separate from the actual cost of the moving services.
Since there are several types of moving company deposits, you must make sure you understand the moving company’s terms and conditions regarding deposits. The key elements when it comes to moving deposits are 1) the type of the deposit – refundable or non-refundable, and 2) under what circumstances it is refundable.
Always read the moving contract carefully to understand the terms and conditions associated with the deposit.
The deposit amount will depend on the size of your move.
The amount of the moving company deposit will depend on several key factors.
Distance of the move (local vs. long distance). As a rule, your moving company will ask for a higher deposit when you’re moving across the country as opposed to when you’re moving locally.
Size of the move (number of items and size of property). The deposit amount will be influenced by the size of the move simply because most moving company deposits are calculated as a percentage of the final moving cost. In short, the costlier the residential move, the higher the deposit will be.
Time of the year and demand. The amount of the down payment will be higher during the peak of the moving season, on weekends, and at the beginning and end of each month when most rental leases expire.
And here’s the question you must be really interested in:
What is a reasonable moving deposit?
As mentioned above, the moving company deposit will depend on a number of factors. Nevertheless, a reasonable moving company deposit should be $100-$500.
Red flags and scams regarding moving company deposits
When you’re dealing with moving companies, especially concerning deposits, it’s important to be aware of potential red flags that may indicate a fraudulent company.
Here are some warning signs to watch out for:
Large deposits. If a moving company requires a very large deposit before doing any work, this could be a sign of a scam. Most reputable companies require a deposit of around 15-20% of the final moving cost, or they don’t require a deposit at all.
Cash-only payments. Be cautious if a moving company insists on cash payments, especially for the deposit. Legitimate companies usually accept multiple forms of payment and provide receipts for all transactions.
No written estimates or contracts. A reputable moving company will provide a written estimate and a contract. If a mover only gives verbal quotes or avoids providing a contract, it’s a red flag and you should walk away.
Extremely low quotes. Be cautious of quotes that are significantly lower than what other companies offer. Sometimes, fraudulent movers will offer a low quote to lure customers and then increase the price drastically later.
Lack of license and insurance information. Legitimate moving companies should have the necessary licenses and insurance. If a mover cannot or will not provide this information, it’s a sign of potential fraud.
No physical address or contact information. If the moving company doesn’t have a physical address or the only way to contact them is through a cell phone or generic email, be wary.
Negative reviews or no online presence. Research your moving company online. A lack of an online presence or too many negative reviews can be warning signs.
You should always do thorough research and trust your instincts. If something feels off when you’re dealing with a moving company, it’s better to look for another mover.
You must research your movers thoroughly before you can trust them.
To stay out of trouble, here are the steps you must take before you pay a deposit to a moving company:
Research the moving company thoroughly to make sure you’re working with a legitimate and reputable mover.
Read and understand the terms of the deposit before making a payment.
Double-check whether the deposit is refundable or non-refundable. If it’s refundable, familiarize yourself with the conditions under which you can get your deposit back in full from the moving company.
Do NOT pay a moving company deposit cash, ever. Instead, always use your credit card to make a payment. This way, in case of fraud, you should be able to dispute the charge.
Do NOT pay a large deposit to a mover upfront. A reasonable movers’ deposit typically ranges from $100 to $500. If you are asked to pay more than $500 as a moving deposit, the moving company may be fraudulent so you should not use their services.
Use our Moving Cost Calculator to learn how much your upcoming residential move will cost. This way, you will get in touch with legitimate, reputable, and trustworthy movers who will never try to scam you in any way.
Booking deposit is a standard fee many legit moving companies require. Good explanation of the moving deposit charges. Just wanted to add that deposits may vary with the state. The more expansive the city or state is, the higher the deposit will be because the pricing of the moving labor is higher. Also, as far as we know about moving deposit practices, the amount doesn’t vary with season, but there may be companies that do it.
I found I thought was a moving co. and found out he was just a broker, on there web page even said they had 23 trucks. Did research and they don't have a license to do Business and I already paid 500.00 Even though I signed a contract can I still get my money back.Hope someone can help Me.
Even with a cancellation policy in place and informing them in detail of how the cancellation policy works. Customers feel they can make a mover work for nothing by canceling the move and just charging back there credit cards. I can’t tell you how many people I have scheduled moves for and they cancel the day before and without notice just calls there bank and opens a dispute for no reason, Its hard enough to get a merchant account in this industry and to cause bad will on someones livelihood is wrong. I provide a quality service and take very good care of my customers. Most of them cancel because they got a low ball quote from a rogue mover who will screw them over. The good guys with the honest quotes usually have the most problems before a move takes place by price gauging customers. I don’t know what this country is coming too but it seems like everyone who calls for a quote is trained to want the cheapest price and forget about how important service is. It cost a company more money to provide a better service. Weather your a moving broker and do a good job and have quality carriers or a carrier with good workers either way people should focus more on the service the company is providing then anything else. Its not the kind of moving company are but more important the type of company you are. There are great brokers out there and great carriers. when you price shop you set yourself up for the scam company to sell you the dream your looking for. Don’t be fooled. No mover can do it cheaper then you renting a truck and driving the load yourself. If they could then truck rental companies wouldn’t be in business. Carriers and Brokers both have overhead they pay for and you have yourself and you truck rental. So the next time you want to cancel a move a few days before you move from a company that worked really hard to set up good service for you think about how hard people work for a living.
It is illegal for a mover to collect a deposit when moving interstate and crossing state line. Whomever wrote this article must be a broker of not follow the govt regulated DOT rules in this industry. If you pay a deposit the mover/broker most likely will never show up and you will be out of luck.
Chad, could you please assist me in where to find the government regulatory rule stating it is illegal to collect a deposit when moving interstate. I’ve searched the FMCSA site and can’t seem to find that particular subject.
Could you please provide me a link or website where I may ascertain this information please?
The broker I used was Interstate Movers USA. I paid 531.00 deposit which I later cancelled my move cause I felt something was not right. I verbally cancelled which was a big mistake. I got an email stating if anything went wrong with my move I would be refunded my deposit 48 hours out. My bank would not help refund my money but did for my daughter who had the exact same thing happen to her and the bank refunded her money and she had a verbal cancellation. The bank will not help in any way now cause its been too long. I still feel there is a way to get my money back I just don’t know who to report this too that could help me. Do you know who I can file with to try to get my money back or at least stop these movers from scamming someone else?
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Booking deposit is a standard fee many legit moving companies require. Good explanation of the moving deposit charges. Just wanted to add that deposits may vary with the state. The more expansive the city or state is, the higher the deposit will be because the pricing of the moving labor is higher. Also, as far as we know about moving deposit practices, the amount doesn’t vary with season, but there may be companies that do it.
Thank you!
E-Z Movers
I found I thought was a moving co. and found out he was just a broker, on there web page even said they had 23 trucks. Did research and they don't have a license to do Business and I already paid 500.00 Even though I signed a contract can I still get my money back.Hope someone can help Me.
Even with a cancellation policy in place and informing them in detail of how the cancellation policy works. Customers feel they can make a mover work for nothing by canceling the move and just charging back there credit cards. I can’t tell you how many people I have scheduled moves for and they cancel the day before and without notice just calls there bank and opens a dispute for no reason, Its hard enough to get a merchant account in this industry and to cause bad will on someones livelihood is wrong. I provide a quality service and take very good care of my customers. Most of them cancel because they got a low ball quote from a rogue mover who will screw them over. The good guys with the honest quotes usually have the most problems before a move takes place by price gauging customers. I don’t know what this country is coming too but it seems like everyone who calls for a quote is trained to want the cheapest price and forget about how important service is. It cost a company more money to provide a better service. Weather your a moving broker and do a good job and have quality carriers or a carrier with good workers either way people should focus more on the service the company is providing then anything else. Its not the kind of moving company are but more important the type of company you are. There are great brokers out there and great carriers. when you price shop you set yourself up for the scam company to sell you the dream your looking for. Don’t be fooled. No mover can do it cheaper then you renting a truck and driving the load yourself. If they could then truck rental companies wouldn’t be in business. Carriers and Brokers both have overhead they pay for and you have yourself and you truck rental. So the next time you want to cancel a move a few days before you move from a company that worked really hard to set up good service for you think about how hard people work for a living.
Any mover that takes a deposit is a scam and usually a broker. A real mover will never take a deposit.
It is illegal for a mover to collect a deposit when moving interstate and crossing state line. Whomever wrote this article must be a broker of not follow the govt regulated DOT rules in this industry. If you pay a deposit the mover/broker most likely will never show up and you will be out of luck.
Chad, could you please assist me in where to find the government regulatory rule stating it is illegal to collect a deposit when moving interstate. I’ve searched the FMCSA site and can’t seem to find that particular subject.
Could you please provide me a link or website where I may ascertain this information please?
Thanks much & God Bless!
Does anyone know if it is legal to hold the deposit for 1 year if the contract is canceled and it is written in the contract >
The broker I used was Interstate Movers USA. I paid 531.00 deposit which I later cancelled my move cause I felt something was not right. I verbally cancelled which was a big mistake. I got an email stating if anything went wrong with my move I would be refunded my deposit 48 hours out. My bank would not help refund my money but did for my daughter who had the exact same thing happen to her and the bank refunded her money and she had a verbal cancellation. The bank will not help in any way now cause its been too long. I still feel there is a way to get my money back I just don’t know who to report this too that could help me. Do you know who I can file with to try to get my money back or at least stop these movers from scamming someone else?