Limitations Of Local Moving Services: Understanding Why A Moving Company May Limit Their Service Area

Posted on: 30 July 2019

There are moving companies of all kinds. There are long distance moving services and local moving services. There are interstate moving services and international moving services. What really sets these companies apart is their choice to be just a local moving company. Sometimes that choice has a lot to do with factors that consumers are not aware of, and it helps to understand why your favorite moving company will only move locally. 

Operational Costs

It is far less expensive to only move customers locally. The gas usage for moving trucks and the time paid out to movers make local moving the least expensive moving service to operate on a daily basis. By refraining from moving anyone farther than ten to twenty miles from the company's office hub, the company can continue to operate within a workable budget that keeps the company running. 

Interstate Licensing and Regulation Fees

The moving companies that are able to move your belongings over state lines and as far as you want to move within the continental U.S. all have to pay special fees to abide within the boundaries of state traffic and roadway laws. The company does not usually charge customers these fees directly, since they pay the fees on an annual or semi-annual basis. Instead, these fees are considered when setting the overall cost of the service. For smaller moving companies, these fees may be more than the moving company can pay upfront, which is why they may choose to stay local and not expand into long distance moving services. 

Business and Truck Insurance

When moving companies (or any company for that matter) applies for business insurance, the insurance company wants to know about the type of business in operation. The greater the risks the company takes to operate and provide goods or services, the more insurance that company will need to protect its business assets. Owners of local moving companies present insurance companies with their business plans to operate only within a twenty-mile radius (or so), which can result in a much lower risk of possible lawsuits, as well as fewer potential hazards on the road. Ergo, the insurance companies are inclined to provide local moving companies with less expensive insurance, which helps these movers prosper. Additionally, truck insurance for each of the moving trucks owned by this company has to be purchased, so their overall cost of insurance is less if they are not going to be going too far from home. 

If you are moving, consider contact a local moving service, like Tony's Sons Moving and Storage.