Binding vs. Non-Binding Moving Estimates: What’s the Difference?

That is the basic difference. The details below explain what happens when your inventory changes, why the 110% rule applies only to non-binding estimates, and what to look for in your own paperwork.

Binding estimate

Under 49 CFR 375.401, a binding estimate is an agreement made in advance with the shipper. It guarantees the total cost of the move based on the quantities and services shown on the estimate.

The key phrase is quantities and services shown.

If the shipment stays within that scope, the mover is bound by the estimate for those goods and services.

If additional household goods or services appear before loading, 49 CFR 375.403 explains how the mover can respond. The mover can reaffirm the original binding estimate, prepare a new binding estimate before loading, or agree in writing with the shipper to treat the original binding estimate as non-binding.

Non-binding estimate

A non-binding estimate is the mover’s estimate of what the move will cost.

It is not the final guaranteed price. Federal rules say final charges are based on the actual weight of the shipment, the services provided, and the applicable tariff provisions.

A non-binding estimate still must be reasonably accurate, in writing, and clearly describe the shipment and services.

The 110% rule only applies to non-binding estimates

For a non-binding estimate, the mover generally must deliver the shipment when the customer pays no more than 110 percent of the estimate for the services and quantities covered by that estimate. A binding estimate has no such rule, because its amount is the amount.

The rule limits what can be demanded at delivery rather than what the move costs, so “110%” should not be read as “the final bill can never be more than 10% higher.”

Read more: The 110% Rule for Interstate Moving Estimates.

What if your inventory or services change before loading?

The federal rules put special emphasis on changes before loading.

If the mover believes you are tendering additional goods or requesting additional services not identified in the estimate, the paperwork should be resolved before the shipment is loaded.

The simple version: if your inventory or service plan changes, do not wait until the truck is loaded to bring it up.

What if the estimate says “not to exceed”?

Federal Part 375 defines binding and non-binding estimates. A phrase such as “binding not-to-exceed” is the mover’s own wording for a price ceiling, so read the provision in your document and check what it says about added goods, added services, and weight.

How to identify your estimate type

Look for the label on the face of the estimate and then confirm the surrounding wording.

For a binding estimate, look for language that says the mover and shipper are bound by the charges for the quantities and services shown.

For a non-binding estimate, look for language explaining that the estimate is not binding and that final charges depend on actual weight, services, and tariff provisions.

If the estimate type is only stated verbally, ask for the written document to make it clear. The rest of the required contents are in What Should Be Included in an Interstate Moving Estimate?.