How to Quickly Know if You're talking to a Broker or a Carrier
Moving Broker or Carrier? (2024 Update)
In this comprehensive guide, we outline the essential distinctions between moving brokers and carriers to assist you in making an educated choice for your upcoming move.
Moving companies typically provide comparable services through either a full-service or self-service approach. Yet, an aspect that is frequently overlooked but crucial in making a well-informed choice when selecting a mover is determining whether they function as a broker or carrier. The Federal Motor Carrier Safety Administration (FMCSA), a division of the U.S. Department of Transportation (USDOT), oversees the regulation of the interstate moving and trucking sectors. Long-distance movers must possess FMCSA authorization as either a moving broker or carrier to operate lawfully.
It’s not always apparent whether a company is a broker or carrier at first contact, but this page will help you identify each type of mover and understand the differences between them.
Moving Brokers
One perceived benefit of working with a broker is that you are likely to obtain more competitive moving quotes. With well-established partner networks, brokers offer broad coverage and efficient booking services. However, it's important to note that brokers are not permitted to transport household items using their own vehicles or personnel.
Moving brokers are not moving companies themselves, although this distinction may not always be explicitly stated on their websites. These brokers operate by engaging sales representatives who serve as intermediaries connecting customers with licensed moving companies. With networks ranging from dozens to thousands of professional movers, brokers have the ability to negotiate prices with their partners when obtaining quotes for your moving needs.
As evidenced in customer testimonials across the web, a major drawback to using a broker is that not all brokerages properly vet the moving companies in their networks. At best, this results in inconsistent quality of service. At worst, it can lead to customers being scammed by disreputable movers. Another common issue we see is brokers providing low estimates that increase drastically when the moving company that picks up your contract sees your inventory.
How Do I Know Whether I’m Hiring a Moving Broker or Carrier?
Among the first steps you should take when considering hiring a mover is confirming whether the company is a moving broker or carrier. We’ve outlined the process below.
- Interstate brokers and carriers are required to be registered with the FMCSA, and the company must display its DOT number in all marketing materials.
- Brokers are required to explicitly mention in their promotional materials that they do not handle the transportation of household goods. However, some brokers manage to circumvent this rule by discreetly including it within their content. To uncover this disclaimer, it is advisable to thoroughly review the company's website, as it is frequently located towards the bottom of the page.
- To determine if a company is a moving broker or carrier, utilize the
FMCSA’s Company Snapshot tool to access registration details by entering the company’s DOT number.
How Do I Stay Protected?
If you choose to go with a moving broker for your relocation needs, there are several ways to avoid having a poor moving experience or being the victim of a scam.
Search by the company’s name when using the FMCSA’s Company Snapshot tool to see if a purported carrier also has a secondary registration as a broker.
Request an in-home consultation (also known as a physical survey) for an accurate assessment of your home’s inventory. Make sure the move estimator takes their time surveying each area of your home.
Ask the broker for a list of the moving companies with which it has a written agreement to outsource services. Reputable brokers will provide this information in accordance with FMCSA regulations.
Read through the FMCSA’s “Your Rights and Responsibilities When You Move” booklet and its “Ready to Move” checklist.
Check the broker’s complaint history on the FMCSA.
Read reviews from third-party sources.
Be wary of large deposit requirements and ask for more details about what your payment covers before booking your move.
Distinguishing Moving Brokers from Carriers
In the following comparison, we highlight the significant distinctions between moving brokers and moving carriers. Additionally, we offer comprehensive overviews to assist you in differentiating between these two types of enterprises and understanding the importance of these disparities.
| Identifying Feature | Broker | Coleman - Allied |
|---|---|---|
| Local Agency at origin AND Destination | Employs teams of pro movers in over 400 locations | |
| Requires $$$ Deposit to Reserve | Typically 20-30% down | No Upfront Deposit |
| Operates Fleets of Trucks | None | More than 3,500 vehicles operated by trained and certified Allied Van Lines drivers |
| Authorized to transport household goods | Not Authorized. Subcontracts to unknown 3rd party | Authorized by the FCMSA, USDOT as Carrier |
| Offers Full Replacement Value Coverage over Goods | No. Maximum coverage of 60 cents per pound. Example: 6,000lb move covered $3,600 max. Per item example: $1500 sofa @200lbs = $120 coverage. | Yes. Total coverage of $8/lb minimum total loss and item replacement value coverage. Example: 6,000lb move covered for $50,000. Per item example: $1500 sofa @200lbs = only $1500 coverage. |
| Must be registered with the FCMSA | YES - Click here to see if registered. | YES - Click here to view |