You wouldn’t hand your house keys to a stranger without checking credentials and reliability. So, why trust a moving company without making sure they’re licensed and insured?
Too often, people assume any mover with a truck qualifies to transport their belongings. Unfortunately, not all moving companies operate legally or carry the right coverage. Choose the wrong one, and you may have to pay for lost items, damage, or even injuries.
With this guide, you can avoid bad actors and scams and find moving companies with a great reputation. It breaks down what “licensed and insured” really means, why it matters to you, and how to verify credentials before signing any paperwork. Think of it as your moving insurance before you start packing your first box.
What Does “Licensed” Mean for Movers?
A truck and a website don’t make a mover legal. Licensed means the company registers with the right agencies and follows the law. That way, you know they’re operating within legal bounds and have accountability. The status of the license varies depending on whether you’re moving within the same state (intrastate) or across state lines (interstate).
Federal Licensing (USDOT and MC Numbers)
Moving companies operating across state lines must register with the Federal Motor Carrier Safety Administration (FMCSA). This agency gives movers a United States Department of Transportation (US DOT) number. It’s like a mover’s federal ID. If the company carries household goods across state lines, it should also have a Motor Carrier (MC) number.
You can verify these numbers via the FMCSA’s mover lookup tool, so if you’re planning a move that crosses state lines, you should look up your movers before you book.
State-Level Licensing
For in-state moves, there’s no need for federal licensing, but state-level agencies may still have license requirements. Check your state’s transportation or consumer affairs website to see what licensing rules apply where you live. California, Texas, and New York all have their own departments of transportation or consumer affairs offices that regulate movers. In these cases, movers must meet certain safety, insurance, and pricing standards.
What Does “Insured” Mean for Movers?
You’ve probably seen moving companies claim they’re “insured,” but you don’t always know what that covers. Insured movers carry policies that protect themselves, their workers, and (to an extent) your belongings. But the types of coverage vary. Some don’t protect you as much as you’d think.
Common types of mover insurance include:
- General liability: Covers accidents like a mover dropping a dolly and denting your floor
- Cargo insurance: Covers damage or loss to your belongings while they’re in transit. Not all movers carry this by default, so make sure to ask.
- Workers’ compensation: Covers movers if they get hurt on your property, so you don’t have to pay medical bills.
You can verify a mover’s insurance through a document that proves their insurance, such as a Certificate of Insurance (COI). It outlines exactly what’s covered.
However, just because you’ve looked at a mover’s COI doesn’t mean you’re fully protected. Their policies might not pay for the full value of what you’ve lost or what’s been damaged. You might want to look into purchasing additional moving insurance, like valuation coverage or third-party protection, to get total coverage. You can learn more in our Moving Insurance: A Comprehensive Guide.
Why Licensing and Insurance Matter
When you hire licensed and insured movers, you’re taking steps to protect your home, your belongings, and your bank account. If something goes wrong during your move — and it often does — licenses and insurance can turn a big problem into a small one.
“If your movers aren’t licensed and don’t have insurance, there’s not much you can do. Without proper insurance, there’s no way to get your money back if someone steals your belongings or anything breaks during transit.”
Proper licensing ensures your movers operate legally in your area. It also holds them accountable to state or federal standards for safety, maintenance, and complaint handling.
Insurance, on the other hand, offers financial protection for you and the movers. If a mover gets hurt or your dishes break, the insurance company decides who pays.
Apartment buildings and COI requirements
Many apartment buildings, condos, and HOAs require a COI from your movers before they’ll allow access to service elevators or loading docks. If your movers can’t provide one, you may lose access to elevators and parking on your moving day.
Avoiding scams and shady operators
Cheap, unlicensed movers may look like a deal, but in the end, they can cost you much more than you save. While moving scams don’t happen as often as they used to, successful scams cost 33% more than they did two years ago. Licensed movers have fewer complaints from their customers, and when complaints do crop up, customers have a clear path to a resolution.
What Happens If Your Movers Aren’t Licensed or Insured?
If your movers aren’t licensed and don’t have insurance, there’s not much you can do. Without proper insurance, there’s no way to get your money back if someone steals your belongings or anything breaks during transit. If a mover slips on icy steps or gets hurt, and there’s no workers’ compensation coverage, you might even have to cover medical expenses. Without a license, you can’t report scammers or recover any losses.
Even if the upfront quote seems appealing, going with a sketchy company can cost you far more in the end. Licensing and insurance are your first line of defense against disasters, delays, and outright fraud.
How to Verify If Movers Are Licensed and Insured
Don’t just trust their word. Always check a mover’s license and insurance to stay safe. The good news? Checking doesn’t take long, and it could save you thousands in damages or lost items. Here’s how to do it:
- Check the FMCSA database for interstate moves.
- Check state websites for in-state companies.
- Ask for their COI.
A reputable company won’t hesitate to show you a COI or answer any questions about their policies (their reputation is on the line, after all!), so if a mover dodges your request or gives excuses, walk away. There are hundreds of movers available in most major metros, so there’s no reason to work with a company that can’t show the basics — proof of insurance and licensing.
Signs of Unlicensed Movers
Unlicensed movers often operate in plain sight, using websites and fake reviews. But if you know what to look for, you can pick out the scams pretty quickly. Here are some common red flags:
- No US DOT or state license number
- No physical business address
- Cash-only payments
- Large upfront deposits
- Vague paperwork
- Suspiciously low estimates
- No proof of insurance
- Unmarked trucks and rented equipment
- Little or no online presence
- Pressure tactics
Signs of Uninsured Movers
- They can’t show a COI
- No mention of coverage options
- They dodge questions
- Cash-only and no receipts
- They don’t follow the rules
- No insurance page on their website
- Vague or no reviews
If you’re worried about who to hire, check with HireAHelper. Our platform does the vetting for you, connecting customers with licensed and insured companies, so you can skip to comparing prices and finalizing your moving date.
Do All Movers Need to Be Licensed and Insured?
Yes, but not always in the same way. All long-distance (interstate) movers must have an FMCSA license and must carry insurance for your belongings, their workers, and accidents. For local (intrastate) movers, the rules vary by state. Always check your state’s specific laws.
“Many apartment buildings, condos, and HOAs require a COI from your movers before they’ll allow access to service elevators or loading docks.”
Solo operators or small teams should still carry basic liability and cargo coverage. If they operate professionally, they’ll provide their COI upon request. Some reputable smaller movers might partner with platforms like HireAHelper, which verifies mover credentials and provides guaranteed added protection. This proves useful when hiring independent help for loading/unloading services.
But even if your movers are fully licensed and insured, their liability coverage might not fully protect you in the event of loss or damage. Supplemental moving insurance is something worth considering, especially for high-value items.
Tips for Choosing the Right Movers
Hiring licensed and insured movers is step one. But how do you narrow down your choices to the best one for your specific needs? Whether you’re considering a full-service or labor-only move, making a thoughtful choice upfront will save you time and potential financial headaches down the line.
Start by verifying credentials.
Always ask for a US DOT number or check your state’s database for local companies. Then, request a COI and confirm they have the coverage you need.
If you’re moving inexpensive furniture and items that only have sentimental value, the mover might not need high coverage limits. If you have antiques or other expensive items, you’ll want to make sure the insurance limits are high enough, or you’ll want to get separate coverage. If a mover can’t provide clear documentation at this step, move on.
Next, do your research
Check multiple online reviews, especially those that mention how the company handles damage claims or last-minute issues. Ask for references if you’re unsure. Compare quotes, but don’t base your decision on price alone, especially since shockingly low ones mean you might be getting scammed. Look at what’s included, like valuation coverage or equipment fees.
Use trusted platforms
HireAHelper pre-screens movers, displays real-time customer reviews, and lets you hire help by the hour. It’s a solid way to ensure you’re working with reliable professionals without the risk of shady operators.
Think of it like hiring someone to take care of your most personal belongings. Trust, transparency, and track record matter.
Frequently Asked Questions
What is a “licensed mover”?
A licensed mover is a moving company that has registered with the appropriate federal or state authorities. For interstate moves, this means having a valid US DOT number from the FMCSA. For intrastate (local) moves, licensing depends on the state’s requirements, which may include registration with the state’s department of transportation or another regulatory agency.
What is an “insured mover”?
An insured mover has insurance to cover damage, loss, or injuries during your move. This may include general liability insurance, cargo insurance, and workers’ compensation. Reputable movers should offer proof of coverage when you ask.
Do movers have their own insurance?
Yes, licensed movers are typically required to carry insurance coverage. However, what’s included can vary. Basic valuation coverage (released value protection) is usually free, but it offers very limited protection to you, at around $0.60/lbs. To protect high-value items, you may need to purchase extra coverage or even a separate policy.
Do I need to tell my insurance company if I move?
Yes. You should notify your renters’ or homeowners’ insurance provider when you move, as your policy may not automatically cover belongings in transit. Some policies offer limited relocation coverage, but for complete protection, especially during a long-distance move, separate moving insurance is often recommended.
How do you know if your mover offers insurance?
Ask! You’ll want to see the insurance the company already has, along with any extra coverage they offer for you. Remember, the COI is solely a type of liability insurance to protect the business — not you. It’s important to understand which coverage is available to protect you and your belongings.And be aware that any reputable company will be happy to show you a COI or explain their policies. If a company acts cagey about its protection, find another one.