Don’t Get Scammed: Your Ultimate Guide to Verifying Moving Company Insurance (2024)

Learn how to protect your belongings by verifying your local moving company’s insurance coverage with our comprehensive authentication guide.

Whether you’re planning a cross-town move or relocating to a new city, finding reliable packing and moving services near me is likely at the top of your search history.

But beyond reading reviews and comparing quotes, there’s one crucial step many people overlook: verifying their moving company’s insurance coverage.

Let’s dive into why this matters and how to protect yourself from potential disasters.

Understanding Moving Insurance Basics

Before we delve into the verification process, let’s understand what we’re actually looking for.

Moving company insurance comes in several layers, and knowing these is your first line of defense against potential scams.

Insurance Type

Coverage Level

Typical Cost

Legal Requirement

Released Value

$0.60 per pound per item

Included

Mandatory

Full Value

Full replacement cost

Additional fee

Optional

Separate Liability

Varies

Varies

Required by state

Cargo Insurance

Up to $1M

Included

Required for interstate

Types of Moving Company Insurance Coverage

1. Released Value Protection

This is the most basic coverage required by federal law. However, be aware that this basic coverage only provides minimal protection — typically around $0.60 per pound per article. That means if your 50-pound TV worth $1,000 gets damaged, you’d only receive $30 in compensation.

2. Full Value Protection

This is the comprehensive coverage you actually want. Under this protection, movers must either:

• Repair the damaged item
• Replace it with a similar item
• Pay for its current market value

According to the American Moving and Storage Association, full value protection typically costs between 1–2% of your shipment’s value.

Essential Documentation to Request

When verifying insurance coverage, always request and verify these three crucial documents:

1. Certificate of Insurance (COI)

• Current date (within last 30 days)
• Company name matches exactly
• Coverage amounts clearly stated

1. USDOT Number

• Active status
• Matches company name
• Insurance history available

1. State-Specific Licenses

• Current validity
• Proper jurisdiction
• Matching business details

Step-by-Step Verification Process

Step 1: Initial Request

Start by requesting a Certificate of Insurance directly from the moving company. Important: Never accept a photocopy or scan without verifying it independently.

Step 2: Verify the Insurance Provider

1. Contact the insurance company directly
2. Provide the policy number
3. Confirm:

• Policy status (active/inactive)
• Coverage dates
• Coverage amounts
• Named insured matches your moving company

Step 3: Check USDOT Registration

Visit the FMCSA website (Federal Motor Carrier Safety Administration) and:

1. Enter the company’s USDOT number
2. Verify active insurance
3. Check safety ratings

According to FMCSA data, 32% of moving companies fail to maintain proper insurance levels, making this step crucial.

Verification Step

Where to Check

What to Look For

Red Flags

Insurance Status

Insurance Provider

Active Policy

Expired dates

USDOT Number

FMCSA Website

Current Registration

Inactive status

State License

State Authority

Valid License

Missing permits

Company Name

All Documents

Exact Match

Name variations

Red Flags to Watch For

Be immediately suspicious if you encounter any of these warning signs:

1. Reluctance to provide documentation
2. Insurance certificates that look photocopied or altered
3. Extremely low quotes compared to competitors
4. Pressure to sign contracts quickly
5. No physical business address

Industry Statistics on Moving Scams

• 33% of moving complaints involve insurance disputes
• Over 4,000 moving fraud cases reported annually
• Average loss in moving scams: $8,000
• 71% of victims never recover their losses

Additional Protection Options

Consider these supplementary protection measures:

1. Third-Party Moving Insurance

• Typically covers full replacement value
• Independent of moving company
• Often more comprehensive coverage

1. Homeowner’s Insurance Extension

• Check if your policy covers moves
• Usually requires specific riders
• May have lower deductibles

What to Do If Something Goes Wrong

1. Document Everything

• Take photos before and after
• Keep all communication records
• Save receipts and contracts

1. File Official Complaints

• FMCSA
• State consumer protection office
• Better Business Bureau

1. Seek Legal Assistance

• Contact consumer protection attorney
• File small claims court case
• Report to state attorney general

Important Contact Information

Organization

Purpose

Contact Method

FMCSA

Federal Complaints

1–888-DOT-SAFT

BBB

Business Reports

bbb.org

State AG

Legal Action

varies by state

Insurance Commission

Coverage Verification

state website