Owner-Operator Trucking Insurance
Own authority or leased on? See which coverages owner-operators usually compare, what affects the premium, and what to prepare before requesting a quote.
What owner-operators usually need to insure, and how running under your own authority differs from leasing on to a carrier.
Who this guide is for
An owner-operator owns (or finances) the truck and runs it as a business, either under their own operating authority or leased on to another motor carrier. The right insurance mix depends mostly on which of those two ways you work.
Own authority versus leased on
Running under your own authority makes you the motor carrier. You normally carry primary liability on your own policy, usually cargo coverage that brokers and shippers ask for, and physical damage if you want the truck and trailer protected. For-hire interstate carriers also need their insurer to file proof of liability coverage with the FMCSA.
Leasing on means you run under another carrier’s authority. That carrier typically provides primary liability while you are under dispatch, and your lease agreement lists what you must carry yourself. Owner-operators in this position often look at non-trucking liability (bobtail), physical damage and occupational accident coverage.
Coverages owner-operators usually compare
Which of these are available to you depends on your operation, driving history and the carrier’s underwriting.
- Primary auto liability injury and property damage you cause to others while hauling under your own authority.
- Motor truck cargo loss of or damage to the freight you haul.
- Physical damage collision and comprehensive for your own truck and trailer.
- Non-trucking liability (bobtail) liability when the tractor is not under dispatch, depending on the policy.
- Occupational accident benefits if you are injured while working; owner-operators are generally not covered by workers’ compensation.
What affects the premium
- Driving record and CDL experience violations and accidents can raise the price.
- Time in business a track record helps; new ventures often pay more.
- Cargo and radius what you haul, and whether you run local or long haul.
- Equipment age, type and value of the truck and trailer.
- Limits and deductibles higher limits cost more; higher deductibles usually lower the premium.
What to have ready for a quote
- Owner details full name, email and DOT number (if you have one).
- Operation cargo type, and local or interstate.
- Driver CDL number, date of birth and full name.
- Equipment truck and trailer year, make, model and VIN.
- Coverage wanted liability and cargo limits, and the value per unit if you want physical damage.
Questions
Do I need my own DOT number as an owner-operator?
It depends on your vehicle weight, cargo and whether you operate across state lines, and on whether you run under your own authority or another carrier’s. Check with the FMCSA, and include your DOT number when you request a quote if you have one.
If I lease on to a carrier, do I still need my own insurance?
Often yes. The carrier’s policy usually responds while you are under dispatch, but your lease agreement normally lists coverages you must carry, such as bobtail, physical damage or occupational accident. Read the lease and ask us if anything is unclear.
Can I get a quote if I am not sure which coverages I need?
Yes. Send your details through the quote form or call us, and an account executive can walk through the options with you.