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Red Flags to Avoid When Hiring a Moving Company

Micheal Nash
Micheal Nash Published Date: May 13th, 2025
Micheal Nash
Micheal Nash Reviewer & Editor
red-flags-to-avoid-when-hiring-a-moving-company

You know what they say: If something seems too good to be true, it probably is.

That couldn’t be more accurate when it comes to hiring a moving company. We’ve all heard those nightmare stories: people get scammed, end up paying way more than expected, or have their precious belongings damaged or lost.

In fact, a report from the Federal Motor Carrier Safety Administration (FMCSA) revealed that in recent years, nearly 1 in 4 people reported having issues with moving scams.

That’s a staggering number!

Now, imagine this: You’re about to make a move, and the last thing you want is to fall victim to one of the many moving company scams.

So, how do you avoid being one of those statistics?

Simple — by spotting the red flags to avoid when hiring a moving company.

There are a few key signs that can make or break your moving experience. We'll discuss all of them so you can know exactly how to avoid moving scams and protect your belongings.

Unlicensed and Uninsured Movers

Let's start with the basics: Is the moving company licensed and insured?

If a company isn't properly licensed and insured, you could be in serious trouble. For interstate moves in the U.S., movers are required to be registered with the Federal Motor Carrier Safety Administration (FMCSA), and they must have a valid U.S. DOT number.

If you can’t find this information on their website or they refuse to provide it, that’s a big red flag.

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Why does this matter? Licensed movers are regulated by government agencies, which means they're held accountable for any damage, loss, or theft of your belongings.

If a moving company isn't licensed, you're basically handing your stuff over to someone who isn’t even required to follow any legal guidelines.

Plus, make sure they’re insured. Even the best movers can have accidents, so if your stuff gets damaged or lost, you’ll want to know your belongings are covered.

No Physical Address or Online Presence

You find a moving company online, and their website looks professional. Everything seems legit, but then, you try to dig deeper.

There is no physical address or phone number that actually connects to someone. If their only contact is an email, that's a major warning sign.

Why?

Scammers often use fake websites with no traceable business address. They operate without any real oversight, and the moment something goes wrong, they disappear.

You won’t be able to track them down or get any help if things fall apart. A legitimate moving company will have a physical address and a reliable way to reach them.

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Crazy Low Estimates

We all want to save money when we move. But if a company offers you a moving estimate that seems too good to be true, it probably is.

Some companies will lure you in with unbelievably low prices just to get their foot in the door.

But once they've packed your stuff into the truck, they’ll hit you with hidden fees, last-minute charges, or a much higher price than initially agreed.

Here’s the deal: binding vs non-binding estimates matter! If a company gives you a “non-binding estimate,” the price can increase based on the weight of your goods, time spent moving, and other factors.

But if the price is far too low at the beginning, be suspicious. A binding estimate ensures the price is fixed, and that's a much safer bet for you.

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Upfront Payments? Avoid Like the Plague!

Another red flag to watch out for is if a company asks for a large upfront deposit or full payment before the move.

Some sketchy movers will demand payment upfront, leaving you vulnerable to potential moving scams. Legitimate companies don’t ask for the entire cost of the move until everything is unloaded and delivered to your new home.

Here’s the rule of thumb: Don’t pay until the job is done. If they ask for anything more than a small deposit (usually no more than 20%), walk away.

Always pay with a credit card for protection—that way, you have more leverage if something goes wrong.

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No Written Contract or Blank Forms

Don't sign anything unless you're 100% sure of its terms. If a moving company gives you a blank contract or one that doesn't fully outline the terms, that's a huge red flag.

Scammers often use vague, incomplete contracts to charge you extra fees later on.

A professional moving company will provide a detailed written contract that specifies all the services, fees, terms, and conditions.

It should include a list of all your items, any special handling required, and the timeline for the move.

Always read the fine print, especially when it comes to moving contracts. Red flags include hidden charges, insurance coverage, and additional services.

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Lack of Transparency or Reviews

How do you know a moving company is legit?

Moving company reviews are your best bet here.

Check them out on trusted sites like Google, Better Business Bureau (BBB), or My Good Movers. If the company has mostly negative reviews or no reviews at all, that’s a sign something might be off.

Scammers don't want you to dig too deeply into their reputations, so they often avoid leaving an online trail.

How to avoid moving scams? Start by reading reviews, talking to previous customers, and asking for references from friends or family. A company with a good track record will have nothing to hide.

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Unmarked or Shady Moving Trucks

Professional movers usually have branded vehicles with their company logo and contact information clearly visible.

If the truck shows up looking sketchy—with no company name or a rented truck—that's a serious red flag.

A legit moving company will show up with well-maintained, branded trucks that reflect their professionalism.

If the truck is a total mystery, you might want to question what else is shady about the business.

Insurance and Valuation Coverage

When it comes to moving, things can and do get damaged. That’s why you need valuation coverage.

A good moving company will offer at least basic coverage for your belongings, and it should be clearly outlined in your contract.

If they don't offer it or try to charge you a ridiculous fee for it, consider it a warning sign.

Make sure you know exactly what you’re getting with your insurance and valuation coverage. And always ask: what happens if something breaks or goes missing during the move?

The last thing you want is to be stuck with a hefty repair or replacement bill in addition to your moving costs.

Be Clear on What You’re Paying For

Hidden fees can kill your moving budget. Some companies will charge you unexpectedly after the job is done for things like extra stairs, elevators, or even the distance from the truck to your front door. They can pile up quickly.

Ask for a full breakdown of costs, and make sure everything is clear before the move starts. Don't get stuck paying for unexpected charges that weren’t discussed upfront.

Refusal to Provide References? Run Away!

A reputable moving company should have references available upon request. If they refuse or hesitate to give you the names of previous clients, that's a bad sign.

A trustworthy company will be proud of its work and have customers willing to vouch for its professionalism. If it can't provide this, it's a major warning sign.

How to Protect Yourself from Moving Scams

Now that we've covered the red flags, let's discuss how to avoid moving scams and make your move go smoothly.

Get Multiple Estimates: Always get at least three written estimates before deciding on a company. Compare their services, prices, and terms.

Check the Company’s Credentials: Verify their license, insurance, and reputation through online reviews.

Ask Questions: Don’t hesitate to ask movers before hiring. Get details about their experience, insurance coverage, and any extra fees they charge.

Use a Credit Card: For extra protection, use a credit card to pay for the move. If anything goes wrong, you can dispute the charge.

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Final Thoughts

Hiring a moving company can be stressful, but by keeping these red flags in mind, you'll be much better equipped to spot scams and avoid headaches.

Remember, don’t rush into it. Take your time to research, get estimates, and ensure the company is trustworthy.

Your move doesn’t have to be a nightmare. With the right knowledge, you can enjoy a smooth transition to your new home!


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Frequently Asked Questions (FAQs)

Look out for unusually low estimates, demands for large upfront payments, and a lack of licensing and insurance. Reputable movers will offer written contracts, clear pricing, and provide proof of credentials. Always check online reviews and ask for references.

Make sure the moving contract includes detailed information on services, pricing, the company’s insurance, and any extra charges. It should specify the date of the move, the items being moved, and your rights if anything goes wrong. Never sign a blank or vague contract.

No, it’s not. A reliable moving company typically asks for a small deposit (no more than 20%) and expects the remainder upon delivery. Avoid any company that demands full payment upfront, as it could be a scam.

Some signs of a bad moving company include unprofessional staff, lack of clear communication, or unmarked moving trucks. Also, if they don’t provide a physical address or you notice too many negative reviews, be cautious.

Research is key! Always check for licenses and insurance, read moving company reviews, and get multiple estimates. A trustworthy company will be transparent about its pricing and services and will answer all your questions.

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