Moving companies: How they work and how much they cost

Whether you're a homeowner moving within the same town or a renter packing up for a cross-country move, using a moving company can make the process more efficient and less stressful. 

While the cost can be higher than renting your own truck and bribing friends with pizza to help you out, you can save time, keep your possessions safe and owe fewer favors to your buddies if you use a professional moving company instead.

However, before hiring a moving company, consider familiarizing yourself with how they work. Moving company costs can still be a big personal finance decision and you want to make sure you get value from what you're paying for. 

If you're contemplating using a moving company you can get started with a free quote today. 

How do moving companies work?

While the core of how moving companies work tends to be relatively the same across companies — they transport your possessions from one home to another — the details can differ.

Some moving companies offer more comprehensive services, like packing, storage, junk removal, and even unpacking of your items. Others might be more limited and focus on getting your boxes from one place to the next. 

Moving companies can also differ in terms of where they operate. Some are available for both local moving and cross-country moving, whereas others might have more limited geographic coverage.

Professional moving companies should also be insured and licensed according to state and local laws. You might notice some differences in insurance coverage among movers. If you have home insurance, that doesn't always cover all moving losses, so you may want to weigh that risk against what moving companies offer.

Another difference to keep in mind is that some moving companies work on a flat rate, meaning you know the full price of the move — assuming they're transparent and don't have hidden fees. Other movers charge an hourly rate, so the cost depends on how long the move takes. Choosing between these depends on factors like the distance of the move and the rates you're offered.

How much do moving companies cost?

Moving company costs can vary depending on the length, complexity, and location of the move. You might spend a few hundred dollars to move from one studio apartment to another a few blocks away, whereas you might spend several thousand dollars on cross-country moving.

Not sure what to expect for your type of move? You can easily get a price quote now. Multiple companies can assist you.

For local moves of under 50 miles, the average hourly cost is around $109 per hour, according to Thumbtack. Long-distance moving expenses average about $120 per hour. But the number of hours required for the move, or the flat rate offered, depends on the details of your move.

So, consider getting estimates in writing from a few companies to get a sense of what you'll end up paying. You don't have to go through with hiring a moving company if the cost seems too high, but you can at least compare that to the cost of moving on your own.

How to find a moving company

To find a moving company, you can search online and/or ask for recommendations.

If you know other homeowners in your area who moved recently, for example, they might have some good insights to share. Perhaps they'd recommend the same moving company they used for their own move, or they can help you steer clear of ones that were inefficient, overpriced, or had other issues.

When searching online, be sure to look for reviews. Reading feedback from previous customers can help you understand in more detail how different moving companies work.

Shop around, too. You don't have to limit yourself to the first quote you get. Call or email several moving companies in your area to see how they compare. And to get a more accurate estimate, consider video chatting or having the company assess your moving situation in person. 

Also, aim to get the quote in writing so you have something to fall back on if the company later claims the price is different than what they said.

Pros of using a moving company

Using a professional moving company offers several advantages, such as:

• Time savings, as you don't have to spend time renting a truck and doing all the loading and unloading yourself. While you still might need to be present for the move, you could catch up on work, for example, while the movers do the literal heavy lifting.
• Ease of the move, not only do you not have to spend your own time doing the actual moving, you don't have to strain your back lifting boxes or furniture either.
• Less complexity, such as when storing your items during a cross-country move. If you need some time from when you leave your old place and can access your new home, a moving company that can hold onto your belongings safely can be a big relief. In contrast, doing it yourself could mean trying to rent your own storage space and going through another unloading and reloading process.

Cons of using a moving company

While hiring professional movers makes the process smoother in many ways, there are still some pitfalls to be mindful of, such as:

• High costs, as the direct moving expenses can be more than if you handled the move yourself. To limit the costs, clarify ahead of time things like extra mileage fees. Also, factor in costs for tips when building a budget for your move.
• Potential dishonesty, such as if the moving company refuses to deliver your items until you pay an additional fee. Having a contract in place and vetting companies, such as by reading reviews, can help you avoid these situations.
• Less flexibility, in the sense that if you're moving on your own, you might handle a little bit at a time, whereas with some moving companies, you might need to have everything packed up in advance and ready to go at a set time.

Be prepared when hiring a moving company

Overall, hiring a moving company can make the whole moving process easier, but you don't want to jump in blindly. Before choosing a moving company, shop around, read reviews, make sure candidates are properly licensed/insured, etc. That way, you can be more likely to find a moving company that meets your needs and does a good job handling your possessions. 

Finding the right moving company for your needs shouldn't be difficult. You can easily get started right now.