Binding vs. Non-Binding
Binding vs. Non-Binding Moving Estimates
Sometimes understanding binding vs non-binding moving estimates can be challenging. One must understand the key differences between a binding and non-binding estimate. Those difference can also be difficult to remember. Well, do not despair any longer. Below are the key differences between these two interstate moving estimates.
The Non-Binding Estimate
When it comes to interstate estimates, this one is the most common. The price gets projected by the moving companies published tariff and it gets presented to the customer. It is not a guarantee and there is no contract. It is what the moving company projects as the final cost. That projection’s based on two key factors:
- The inventory.
- The services.
Say at the end of the move, the services total less than the estimate. That means the customer is free to pay less than the total written on the estimate. But keep in mind that the opposite situation can occur. If the services end up more than the estimate, the customer has to pay more.
Non-binding estimates are best for people who want to pay as little as possible. That is why they are more common than binding estimates. There are two key components in interstate estimates.
- The number of packing materials.
- The weight of the goods.
Companies conduct estimates based on what they believe the final weight is going to be. That number depends on what gets listed in a customer’s inventory. Trucks gets weighed once all items have gotten loaded.
Customers often have one major concern when it comes to non-binding estimates. They are afraid that their estimate will not be accurate. That is why companies must offer plenty of assurances. They must convey to customers that the estimates are accurate. A great way to do so is to be as transparent as possible. This will boost the customer’s trust in the company. Also, keep the following statistic in mind. A moving company’s tariff can’t make a customer pay 110% more than the total of the non-binding estimate. When? Before the interstate delivery takes place. But the customer can pay charges exceeding 110%. And that cannot take place until thirty days after the delivery.
The Binding Estimate
Now it is time to learn about the less popular estimate, the binding estimate. It means that a customer has to pay the transportation price written in the estimate. This has to occur even if the final weight is greater or less than the original estimate.
What is the benefit of the binding estimate? It is that the transportation price is 100% guaranteed. This gives customers relief in knowing the final cost before the move gets completed. But binding estimates can still result in customers paying more. Most binding estimates have a greater bottom line compared to non-binding ones.
With binding estimates, the transportation section is the only part that is binding. This is the bulk of the estimate—the weight of the shipment. Here is an example. Let’s say a customer’s estimate revolves around self-packing. That is when the customer packs the items on his or her own. But the customer backs out on the day of the move. He or she now wants the moving company to pack. Packing is then charged as another service. It gets added to the final bill as a binding transportation cost. Moving company must confirm what type of moving insurance is agreed on contract such as the basic 60 cents per pound insurance or full value. Also arbitration must be active due to the STB update law arbitration program DOT.