Moving Brokers vs. Carriers (2024 Guide)
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To operate legally, long-distance movers must have authorization through the Federal Motor Carrier Safety Administration (FMCSA) as either a moving broker or carrier. Which type of mover you work with can make a big difference in your moving experience, from the overall cost and available services to your peace of mind.
It’s not always apparent whether a company is a broker or carrier, especially since both types of companies may advertise similar services. Our guide explains how to tell the difference between moving brokers versus carriers and why it matters. We also provide tips for protecting yourself from common moving scams.
Key Differences Between Moving Brokers and Carriers
Both brokers and carriers must be registered with the FMCSA for interstate moves. However, their licenses differ. They may also differ in pricing, services, vetting, and transparency.
The table below outlines the key differences between moving brokers and moving carriers.
| Factor | Moving Brokers | Carriers |
|---|---|---|
|
Employ teams of movers |
No |
Yes |
|
Operate fleets of moving trucks |
No |
Yes |
|
Are authorized to transport household goods |
No |
Yes |
|
Are required to offer valuation coverage |
No |
Yes |
|
Must be registered with the FMCSA |
Yes |
Yes |
|
Outsource services to third-party companies |
Yes |
No* |
*Some carriers have hybrid authorization through the FMCSA to also operate as a moving broker. In these cases, the mover can outsource services under its broker authority.
Brokers act as intermediaries, matching customers with licensed carriers. They don’t transport goods themselves, but they don’t always make this fact clear on their websites. A company operating as a broker employs salespeople who act as middlemen between customers and licensed moving companies. Brokers can have dozens to thousands of professional movers in their networks and can negotiate prices among these partners when bidding out your moving services.
An advantage of using a broker is that you will typically receive lower moving estimates due to competitive bids. Because many brokers have extensive partner networks, you can also expect wide coverage areas and a prompt booking process. But remember that a broker is not authorized to transport household goods with its own trucks or teams.
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.
Moving carriers are operational van lines that provide interstate moving services with their own trucks, sales teams, and moving staff. In other words, they will physically handle your belongings themselves. A company with authority as an exclusive carrier with the FMCSA will not outsource moving services to third-party providers. This also means that any add-on services offered by the company, such as car shipping or cleaning services, are handled by the company.
A carrier is required by law to offer at least two types of moving insurance for consumer protection, including free released value protection. When working with a carrier, you know your estimate is coming from the company that will actually perform your services. Any customer reviews are relevant to the company itself, making it easier to research and understand the pros and cons of individual carriers.
An important consideration is that some professional moving companies have hybrid authorization as carriers and brokers. This may seem confusing, but it simply means that the company conducts some moving services themselves and outsources others. This allows them to take on more moves or offer specialized services they don’t have in-house.
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. See below to learn how.
- Check their website: Brokers must state that they do not transport household goods in their advertising materials, but many skirt this regulation by burying it in the fine print or website footers. Carefully read through the company’s website to find this language—it can often be found at the bottom of the page.
- Look them up: Interstate brokers and carriers must be registered with the FMCSA, and the company must include its U.S. Department of Transportation (USDOT) number in its marketing material. To confirm whether a company is a moving broker or carrier, type their USDOT number into the FMCSA’s Safety and Fitness Electronic Records (SAFER) System and review their company snapshot. Under “entity type,” you should see either “broker” or “carrier.”
Should I Hire a Carrier or a Broker?
The best choice between a broker and a carrier depends entirely on your individual needs and priorities. Consider these factors to make your decision:
- Budget: If budget is your top priority, a broker might secure a lower initial price. However, remember to factor in the risk of hidden fees and later price increases.
- Control and reliability: If you want more control over the moving process and value reliable moving estimates, a carrier is usually the safer choice.
- Complexity of your move: For complex moves, a broker’s vast network and ability to coordinate multiple services may be helpful.
- Timeline: Brokers can tap into their extensive network of movers to find someone with availability for a last-minute or expedited move.
Brokers can offer access to a wide range of movers and streamlined booking processes—especially if your move is complex or last-minute. Reputable brokers can also help you compare prices and find the best deal. However, brokers have less control over service quality, since they aren’t handling your move themselves. You also face a greater chance of unexpected price hikes and scams if the broker doesn’t properly vet its partner movers.
Carriers generally give you more direct control and accountability, as you’re dealing with the company that will actually handle your belongings. Estimates from carriers tend to be more reliable, and you may have a better sense of the moving crew’s quality. However, carriers might be slightly more expensive initially, and they may have more limited availability compared to a broker’s network of movers.
How Do I Stay Protected?
Working with a moving broker can put you at a higher risk of moving scams if the broker doesn’t properly vet its partners. However, you can take steps to protect your move:
Our Conclusion
Brokers can sometimes offer lower moving costs and wider service availability, but be aware of the potential for inconsistent service and surprise fees. Carriers often provide better reliability and accountability, as you’re dealing directly with the company responsible for your move.
Regardless of whether you opt for a broker or carrier, the most important step is thorough research. Verify the company’s registration with the FMCSA, check complaint histories, and read reviews. Always insist on a binding estimate in writing, and familiarize yourself with your rights as a consumer. These precautions can help ensure a smooth and stress-free move.
FAQ About Moving Brokers vs. Carriers
Are moving brokers a scam?
Moving brokers are not inherently a scam. However, the industry has had issues with disreputable brokers engaging in deceptive practices. Thoroughly research any broker before hiring them and be wary of suspiciously low estimates.
Is it safer to use a carrier?
It may be safer to use a carrier when you’re moving—but only if you do your research and hire a reputable company. Carriers generally offer greater accountability since you deal directly with the company handling your move. This often translates to more reliable service, but it doesn’t guarantee a perfect experience.
Are brokers always cheaper than carriers?
Brokers may secure a lower initial price, but carriers’ estimates are typically more reliable and less prone to sudden increases. Factor in the potential for hidden fees or price hikes when comparing a broker’s quote to a carrier’s.
Why did the broker quote me one price, but the carrier wants more?
Brokers often provide low initial estimates to secure business, but the actual carrier may charge more after assessing the size and weight of your belongings. This is a major complaint against brokers, so always seek binding estimates.
Additional Resources
Here are a few official government resources to consult to learn more about moving brokers versus carriers.
- FMCSA’s Movers vs. Brokers fact sheet
- FMCSA’s Spot the Red Flags guide
- DOT Inspector General Protect Your Move video
- Consumer Protection Regulations for the transportation of household goods in interstate commerce
- FMCSA’s Your Rights and Responsibilities When You Move handbook
- FMCSA’s Moving Checklist
- FMCSA’s Ready to Move brochure
To share feedback or ask a question about this article, send a note to our Reviews Team at reviews@thisoldhousereviews.com.
