Binding and Non-Binding Estimates
Two pieces of paper look almost the same and mean completely different things. One guarantees the price of the move. The other guarantees only how much the driver may demand before the truck has to be unloaded, and the rest arrives as an invoice later.
The rule in short
On an interstate household goods move the carrier must give a written estimate before the bill of lading is signed, and must mark it binding or non-binding. A binding estimate fixes the total for the goods and services listed on it. A non-binding estimate does not fix anything, but a carrier must release a collect-on-delivery shipment when the shipper pays 110 percent of it, plus later-requested services and capped charges for impracticable operations.
A binding estimate fixes the price of the move for the goods and services written on it. A non-binding estimate fixes nothing, but it does cap the amount the mover may demand before unloading at 110 percent of the estimated figure, with the balance billed afterwards.
Both documents are required to be in writing, and both must be handed over before the bill of lading is signed. The rules that govern them apply to interstate moves of household goods, meaning a move that crosses a state line. The estimate itself must say on its face which kind it is. If it does not say, that is the first question to ask, and the answer should arrive in writing rather than over the phone.
What the mover has to do before quoting
The default is a physical survey. Someone comes to the home, looks at what is there, and the written estimate is built from what they saw. A shipper may waive the survey, but the waiver must be in writing, signed before loading, and kept as an addendum to the bill of lading with the same retention rules. Telephone and video surveys are common and lawful where the waiver has been signed properly. They are also where most disputes start, because the garage, the attic and the shed are the things a camera never quite reaches.
Along with the estimate, the carrier must supply the federal booklet on a shipper's rights and responsibilities and a short guide to a successful interstate move, either as copies or as links to the agency pages carrying them. Before the bill of lading is executed the carrier must also furnish a notice that its tariff sections are available for inspection and a summary of its arbitration program.
How a binding estimate works
A binding estimate is a guaranteed price for a defined list. It must be in writing, it must state plainly on its face that both the carrier and the shipper are bound by it, and it must state that the charges apply only to the services specifically identified. A copy is attached to the bill of lading and becomes part of the contract. A carrier may charge a fee for preparing one.
The limits matter more than the guarantee. If additional goods appear on moving day, or extra services are needed that the estimate never listed, the carrier is not obliged to honor the figure. At that point the parties either agree a new price or the carrier may decline the shipment. The guarantee protects against the mover's own misjudgment of a known load. It does not protect against a load that turns out to be bigger than the one surveyed.
How a non-binding estimate works
A non-binding estimate is the carrier's reasonably accurate view of what the move will cost, based on estimated weight or volume and on the survey. It must be free, in writing, and accompanied by a written explanation that the final charges will be whatever the tariff produces and may exceed the estimate. Where a volume figure will later be converted into a weight-based rate, the conversion formula has to be explained in writing too.
The protection sits at delivery rather than at pricing. On a collect-on-delivery shipment the carrier must hand over the goods once the shipper pays up to 110 percent of the non-binding estimate, together with charges for services requested after the bill of lading was issued and, if the tariff provides for them, charges for impracticable operations capped at 15 percent of everything else due that day. Anything still owed is invoiced later under the collection rules. A carrier that refuses to unload after that payment is offered has failed to transport with reasonable dispatch and exposes itself to delay claims.
It is often described as a cap on what the move can cost. It is not. It caps only what may be demanded on the day, and the remainder becomes an invoice with a seven-day credit period that extends to thirty days if unpaid, with a service charge attached. A move quoted low on a non-binding estimate can still end up costing considerably more than 110 percent of the quote.
Comparing the two documents side by side
| Question | Binding estimate | Non-binding estimate |
|---|---|---|
| Is the total price guaranteed? | Yes, for the listed goods and services | No, the tariff governs the final figure |
| May the mover charge to prepare it? | Yes | No, it must be furnished without charge |
| Maximum demandable at delivery | The estimate, plus later-requested services | 110 percent of the estimate, plus later-requested services |
| Effect of extra goods on moving day | The carrier need not honor the estimate | Charges rise with actual weight and services |
| Where the rest of the money is settled | Nothing further should be due for listed items | On an invoice presented after delivery |
Reading the paper that was actually signed
Disagreements about an interstate move usually turn out to be disagreements about which document controls. The estimate is the pricing promise; the bill of lading is the contract itself, and the two are meant to match. Check that the form of payment written on the estimate is the same one written on the bill of lading, because the carrier must honor the payment method it specified unless the shipper agrees in writing to change it.
On a non-binding estimate the charges follow the scale ticket, so how the weight is established and checked becomes the whole argument. On a binding estimate the argument is instead about the inventory: what was listed, what was added, and whether anything was genuinely a new service. Keep the signed estimate, the inventory and the bill of lading together. A dispute about price without those three documents is very hard to win, and a carrier that never produced them in the first place has a problem of its own.
When the number changes anyway
Estimates change for reasons that are legitimate and for reasons that are not. Legitimate reasons include goods that were never surveyed, a long carry from a truck that could not park close, a shuttle where the trailer cannot reach the address, and stair or elevator work that was not disclosed. These are often described in the tariff as impracticable operations, and the amount collectible for them on delivery day is limited.
Illegitimate reasons look different. A price that doubles once the truck is loaded, a demand for cash when a card was agreed, or a refusal to unload until a new figure is paid are not pricing disputes at all. Those situations are governed by the rules on a shipment held until more money is paid, which carry their own penalties.
If the disagreement is about the sum rather than about possession, the carrier's arbitration program is the route the regulations point to, and notice of its availability has to be given before the bill of lading is signed. Before booking, it is worth checking the mover's registration and complaint record, because the companies that produce impossible estimates tend to leave a trail behind them.
Points to carry away
- An interstate mover must provide a written estimate and state on its face whether it binds both sides.
- A binding estimate covers only the goods and services actually itemized on the estimate.
- A non-binding estimate is not a price cap, only a cap on what may be demanded at delivery.
- The carrier must relinquish a collect-on-delivery shipment at 110 percent of a non-binding estimate.
- Estimates must normally rest on a physical survey unless the shipper waives one in writing before loading.
Questions readers ask
Can a mover charge for preparing an estimate?
A carrier may impose a charge for providing a written binding estimate. A non-binding estimate must be furnished free of charge and in writing. That difference explains why some companies push the non-binding version at the first phone call: it costs them nothing and commits them to nothing. A fee for a binding estimate is not itself a warning sign, but it should be stated up front and it should buy a document that itemizes rooms, cartons and services in enough detail to be recognizable later.
What if the crew arrives and says there is far more to load than expected?
If the shipper tenders additional household goods or asks for services not identified on a binding estimate, the carrier is not required to honor that estimate. The usual result is a renegotiated price or a revised estimate signed before loading. A carrier that simply loads the truck and produces a much larger number at destination has not followed the sequence the rules set. The moment to settle the disagreement is on the driveway, not at delivery, because possession changes the balance of power completely.
Does an estimate given over the phone or by video count?
The estimate must be in writing whichever way the survey was done. A physical survey of the goods is the default, and a shipper may waive it, but the waiver has to be in writing, signed before the shipment is loaded, and kept with the bill of lading. Video and telephone surveys have become common. They are lawful where the survey requirement has been properly waived, and they are also where most unpleasant surprises begin, because nobody has opened the garage.
Sources
- 49 CFR 375.401 — Must I estimate charges?Requires a physical survey and a written estimate marked binding or non-binding before the bill of lading.
- 49 CFR 375.403 — Binding estimatesThe eleven requirements for a binding estimate, including that it attach to the bill of lading.
- 49 CFR 375.405 — Non-binding estimatesRequires reasonable accuracy and a written warning that final charges may exceed the estimate.
- 49 CFR 375.407 — Release of a collect-on-delivery shipmentThe 110 percent rule and the consequence of refusing to hand over the goods.
- 49 CFR 375.703 — Maximum amount collectible at deliveryCaps delivery-day demands under each estimate type and limits impracticable operations charges.
- 49 CFR 375.213 — Information for a prospective shipperLists the documents a mover must hand over with the estimate, including the rights booklet.
National Attorney Hub is a publication, not a law firm. This article states general rules and cites its sources; it is not advice about any particular case, and the law differs by state and changes over time.
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