Own authority or lease onto a carrier?
Five questions about where you are, then what each path means for the insurance you'd buy.
Where you are
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Questions people ask5 short answers
Is it cheaper to lease onto a carrier than run my own authority?
For insurance, usually yes at the start. Leased on, the carrier's policy covers primary liability and usually cargo, and you buy non-trucking liability, physical damage and often occupational accident. On your own authority you buy liability, cargo and physical damage yourself, priced as a new venture the first year.
What insurance do I need if I'm leased on?
Most leases require non-trucking liability (or bobtail), physical damage if your truck is financed, and often occupational accident. Read your lease for the exact requirements and limits.
What insurance do I need for my own authority?
Primary auto liability filed with FMCSA ($750,000 federal minimum for general freight; most brokers want $1,000,000), motor truck cargo (usually $100,000), physical damage, and often general liability.
How long should I stay leased on before getting my own authority?
Long enough to have 2 years of CDL experience, a clean record and money set aside. Those are what most new-venture insurers look for, and they decide whether your own authority is affordable.
Can the carrier I'm leased to charge me for their insurance?
Yes, many charge some of it back to owner-operators. Federal leasing rules make the carrier responsible for liability, but the lease sets what you pay. Read it before you sign.
Who built this
I'm Alex Kuchkarov, an independent trucking insurance broker. I insure owner-operators on both paths, and the honest answer depends less on ambition and more on experience, record and cash. Insurance is usually what decides it.
This page is educational. It is not a quote, a policy or an underwriting decision. Help from a person is always here if you want it; it isn't required.