Is It Important for My Moving Company to Be Licensed & Insured?

You’re about to move to a new home and you’ve decided to hire a moving company to help you out. Now, all that’s left is choosing a moving company. Unfortunately, not all movers are true professionals. Some are inept and some may even be outright scams. When hiring professional movers in Minnesota, there are a few things you should check for to make sure you’re dealing with a legitimate moving company. Two of the biggest things to look for are licensing and insurance.

It’s very important for any moving company that you choose to work with to have the proper licensing to operate and insurance to protect your valuables. If you want to learn more about what this entails and why it matters, keep reading.

Why Professional Movers Need Licensing & Insurance

Any moving company that moves their clients’ valuables across state lines is required to be licensed by the U.S. Department of Transportation (USDOT). A division of USDOT known as the Federal Motor Carrier Safety Administration (FMCSA) directly oversees the licensing of moving companies. In Minnesota, professional movers also need to be registered with the Minnesota Department of Transportation (MNDOT), even for local moves. One of your first steps when choosing a moving company should be to ensure that they are licensed to operate by both USDOT and MNDOT. If they aren’t, you’re probably dealing with a shady company.

A licensed moving company isn’t guaranteed to provide great service, but it is proof that they’re a legal operation and can be held accountable if something does go wrong. Licensed movers need to meet a number of standards if they want to keep their license, so you won’t have to worry about them stealing your valuables or holding them for ransom. Another benefit of working with a licensed moving company in Minnesota is that they’re required to be insured.

By FMCSA law, licensed moving companies must offer two types of insurance on your valuables: released value coverage and full value protection. Released value coverage is a free insurance option which requires movers to reimburse you 60 cents per pound on items damaged. This option may be safe if you’re just making a short cross-town move but remember that this isn’t a very good deal; if, for example, a desktop computer or a piece of precious glassware breaks in transit, you’ll only be reimbursed a few dollars.

For most moves, it’s much safer to upgrade to full value protection insurance. When you choose this type of moving insurance, your insured moving company will be required to reimburse you for the full value of any item that is broken in transit. If you’re moving a lot of expensive valuables like furniture and electronics, it’s a wise choice to pay for full value protection. Even the best movers can encounter unexpected bumps in the road, and sometimes that’s all it takes for a load shift to ruin some of your belongings.

Work With a Licensed & Insured Moving Company

If you’re ready to partner with a moving company that is properly licensed and insured, Metro Movers is here to help. Give us a call today if you’d like our help with a local move in the Twin Cities metro or a long-distance move across the country!

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