Texas Moving Company Licensing: Key Requirements

If you're starting a moving company in Texas, you need to follow specific licensing rules to operate legally. Here's a quick summary of what you need to know:

• State Certification: Obtain a TxDMV license by registering your business, providing proof of insurance, and meeting vehicle and driver requirements.
• Insurance Coverage: Maintain commercial auto, cargo, general liability, and workers' compensation insurance.
• Tariff Rules: Submit and update transparent pricing documents (tariffs) for approval by the TxDMV.
• Customer Protection: Provide written contracts, liability coverage options, and the "Your Rights and Responsibilities When You Move in Texas" brochure.
• Local Permits: Check city or county requirements for additional permits or zoning rules.

Staying compliant involves renewing your license annually, keeping insurance current, and addressing customer complaints promptly. Tools like MOD24 can help simplify compliance management.

Want to dive deeper? Keep reading for step-by-step guidance on licensing, insurance, tariffs, and customer protection requirements.

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Texas Licensing Process

In Texas, moving companies must go through three main steps: registering their business, getting certified by the TxDMV, and securing any necessary local permits.

Business Registration

Before you can apply for moving permits, you’ll need to handle a few key tasks:

• Register your business name and structure with the Texas Secretary of State
• Get a Federal Employer Identification Number (EIN) from the IRS
• Sign up for state tax accounts through the Texas Comptroller
• Arrange for business insurance and workers' compensation coverage

This process usually takes about 2–3 weeks. Once that’s done, you can move on to getting certified by the TxDMV.

TxDMV Certification

To apply for TxDMV certification, you’ll need to submit:

• Proof of your business registration
• Vehicle registration documents
• Driver qualification files
• Proof of insurance coverage
• Payment of the required fees

Once your application is approved, you’ll need to:

• Display your TxDMV number on all vehicles
• Include the TxDMV number on business documents
• Keep your contact information up to date with the TxDMV

To maintain your certification, ensure you:

• Keep vehicle maintenance records
• Update driver files regularly
• Maintain continuous insurance coverage
• Comply with state tariff regulations

After completing state certification, check if additional local permits are required.

Local Permit Requirements

Reach out to your city or county to find out if there are extra permits or zoning rules you need to follow.

Insurance and Tariff Rules

Required Insurance Types

Texas moving companies are required to carry specific types of insurance to protect both their business and their customers. The TxDMV mandates the following:

• Commercial Auto Liability: Coverage of at least $300,000 for vehicles under 26,000 lbs and $500,000 for vehicles 26,000 lbs or more.
• Cargo Insurance: A minimum of $5,000 per vehicle and $10,000 per occurrence.
• General Liability: Coverage of at least $300,000 for property damage and bodily injury.
• Workers' Compensation: Necessary for companies with employees.

Make sure to use only carriers approved in Texas and update Form TxDMV-SAF-1 whenever there are changes to your insurance policies.

Tariff Requirements

In addition to insurance, the TxDMV requires moving companies to maintain clear and approved tariff documentation to ensure fair and transparent pricing. Your tariff must detail the following:

• Base Rates: Pricing for both local and long-distance moves.
• Additional Services: Costs for packing, storage, and any special handling.
• Fuel Surcharge and Payment Terms: Include the fuel surcharge formula and clear payment policies.
• Claims Process: Steps for addressing claims related to loss or damage.

To comply with these requirements, companies must:

• Submit their tariff to the TxDMV for approval before starting operations.
• Keep the current tariff available on-site.
• Provide customers with a copy of the tariff upon request.
• Update tariffs at least once a year or whenever rates change.
• Ensure pricing remains consistent with the filed tariffs.

If you make any changes to your rates, notify the TxDMV at least 10 days in advance. You’re also required to maintain a record of tariff history for at least two years, which must be available for inspection by the TxDMV. Regularly reviewing tariffs - ideally every quarter - can help ensure that your pricing aligns with your operating costs and market trends. Failure to comply with these rules can result in penalties of up to $5,000 per violation and even license suspension.

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Customer Protection Requirements

Contract Requirements

In Texas, moving companies are required to provide customers with written contracts, known as bills of lading, before starting any move. These contracts must include the following details:

• Company information and TxDMV license number
• A clear pricing breakdown
• Estimated delivery times and payment terms
• Valuation coverage options
• An inventory list of items being moved
• Signatures from both the customer and the company

Contracts must be written in straightforward language and provided at least 24 hours before the move. This ensures both parties have a clear understanding of the terms and safeguards customer rights.

Customer Rights Document

Moving companies must also provide customers with the TxDMV's "Your Rights and Responsibilities When You Move in Texas" brochure. This document is crucial for informing customers of their legal protections and must be:

• Provided during the first contact or estimate
• Available in English and Spanish
• Offered in digital or printed formats
• Accompanied by a signed acknowledgment from the customer

The brochure highlights key protections, including:

• The right to receive a written estimate
• The right to file complaints with the TxDMV
• The right to dispute charges
• The mover's liability responsibilities
• Procedures for filing claims

Liability Coverage Options

To give customers added protection, moving companies must offer different liability coverage options. These options provide flexibility and ensure customers can choose the level of coverage that suits their needs:

Coverage Type	Protection Level	Cost	Coverage Details
Basic Liability	$0.60 per pound per item	Included in base rate	Covers minimal loss or damage based on item weight
Full Replacement Value	Actual item value	Additional fee	Covers repair or replacement at current market value
Declared Value	Customer-specified amount	Variable rate	Based on the declared worth of the entire shipment

These options must be explained in writing, and the customer's choice must be confirmed with a signature. Companies are required to keep records of selected coverage options for at least two years after the move. Liability coverage details should also be clearly displayed in estimates, contracts, on company websites, and in physical offices.

Maintaining License Compliance

License Renewal Process

In Texas, moving companies need to keep their licenses up to date with the TxDMV to stay within legal guidelines. This includes renewing licenses and ensuring all credentials are current. Keeping documentation accurate and updated helps avoid compliance issues and ensures smoother handling of customer concerns.

Customer Complaint Procedures

Once credentials are updated, it's important to have a clear system for handling customer complaints. This means documenting, investigating, and resolving issues quickly. Addressing complaints efficiently not only protects customers but also helps meet regulatory requirements. Staying on top of license renewals and resolving complaints promptly can help companies avoid penalties and maintain steady operations.

MOD24 Platform Features

MOD24 simplifies the process of verifying and tracking regulatory credentials with its digital tools, ensuring compliance is easier to maintain.

MOD24 Company Listings

MOD24 ensures that only licensed and insured movers are listed on its platform. Verified moving companies can showcase their:

• TxDMV status
• Insurance coverage
• Local permits
• Customer reviews

"Every local and long-distance moving helper featured on Mod24 is licensed, verified, and insured. Our commitment is to deliver a professional customer experience, regardless of your relocation destination. With Mod24, a secure and simple move is assured for all."

The platform has earned a 4.6 out of 5 rating from 370 reviews, highlighting its reliability. This verified data integrates seamlessly with MOD24's compliance tools to help companies maintain regulatory standards.

MOD24 Compliance Tools

MOD24 provides tools to help moving companies stay on top of state requirements, managing everything from license renewals to customer feedback in a single system.

Feature	Purpose	Benefit
License Verification	Displays TxDMV status	Builds trust with customers
Insurance Tracking	Monitors coverage status	Ensures regulatory compliance
Review Management	Tracks customer feedback	Enhances service quality
Premium Support	Handles compliance issues	Maintains high standards

With MOD24, moving companies can easily track deadlines, organize documentation, and monitor customer satisfaction. The platform also offers premium support to address compliance-related concerns - all in one place.

Summary

Moving companies in Texas must follow specific licensing rules to operate legally. Here's a breakdown of the main requirements:

Category	Key Details	Renewal Frequency
TxDMV Certification	Includes USDOT and TxDMV Numbers	Annually
Insurance Coverage	Minimum $5,000 cargo and $300,000 liability	Ongoing
Local Permits	City-specific business permits	Varies by location
Customer Protection	Rights documentation and contract compliance	Continuous

The Texas Department of Motor Vehicles (TxDMV) oversees licensed movers, conducting audits to ensure compliance with these rules.

Tools like MOD24 simplify tracking for moving companies by monitoring licensing status, insurance details, and customer reviews. This helps businesses stay compliant and maintain customer trust.

Staying licensed involves regular attention to key tasks, such as:

• Updating insurance policies
• Renewing permits on time
• Filing current tariffs
• Resolving customer complaints
• Keeping documentation up to date