Are you an owner-operator leased onto a motor carrier and need insurance? We can help you with fast quotes!
Finding the cheapest leased owner operator insurance policy that meets all the requirements of your lease is what we do. We can connect you with up to 3 insurance companies that specialize in leased owner operator insurance.
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What is a Leased Owner Operator?
A Leased Owner Operator is a trucker that is an independent contractor and operates their truck under another Motor Carrier’s authority.
Leased on Owner Operators are also referred to as “Truckers that are leased onto a Motor Carrier” or simply described as a Lease Operator.
In any case there are many benefits to being a leased owner operator, such as cheaper insurance, and it’s not surprising that many choose this path.
How much does Leased Owner-Operator Insurance cost?
On average, Leased Owner Operators Insurance costs between $3,000 and $6,000 a year.
This premium usually includes Physical Damage and Non-Trucking Liability Insurance. Every policy is different, of course.
How much you can expect to pay depends mainly on the value of your truck and the insurance company you go with.
Yearly Cost Breakdown for typical coverages
| Coverage | Cost | Description |
|---|---|---|
| Physical Damage | $2,000 – $4,000 | Pays for repairs to your 18-wheeler truck and trailer if it’s damaged from collision, vandalism, theft, or other incidents. The premium is based on the value of your truck. |
| Non-Trucking Liability | $500 – $700 | Covers your tractor when it isn’t attached to a trailer and under dispatch from your Motor Carrier. |
| Occupational Accident Insurance | Varies | Protects independent contractors from work-related hazards in place of worker’s comp. Many motor carriers provide this coverage or require you to purchase your own. |
| General Liability | $500 – $800 | You may want general liability depending on what’s not covered by the Motor Carrier’s policy |
Protect your Semi Truck with insurance coverages designed for Leased Owner-Operators
There are specific insurance coverages you need to protect your truck and your rig street legal.
Physical Damage Insurance for your Truck and Trailer
Cost: Between $2,000 and $4,000 a year
Physical Damage Insurance is essential for leased owner-operators. If your truck is damaged, this coverage pays for its repairs, ensuring you can keep driving no matter what happens on the road. It consists of two parts:
- Collision Insurance – Pays for damage to your truck if it collides with another vehicle.
- Comprehensive Insurance – Pays for other damage, including vandalism, fire, and theft.
The cost of Physical Damage Insurance scales with the value of your truck. Insurance companies typically charge between $30 and $50 per year, per thousand dollars of your truck’s value.
Bobtail Insurance / Non-Trucking Liability Insurance
Cost: Between $500 and $700 a year
Typical primary liability policies, that your Motor Carrier will have in place, don’t cover your tractor when you are off duty. Bobtail Insurance / Non-Trucking Liability (NTL) insurance covers you when using your truck for non-work related purposes.
These policies are a must for owner-operators because they not only provide extra protection but NTL is required by law.
Coverages provided by the Motor Carrier (usually)
The motor carrier you’re leased onto may provide certain insurance coverages, so it’s important to review your lease agreement carefully to see what’s included. Here are some common coverages the motor carrier provides
Primary Liability Insurance
Pays for damage that you cause to other peoples property or injuries to other people while operating your truck. Shifting this expense is one of the main reason truckers lease to a motor carrier.
Cargo Insurance
Covers damage to the cargo you haul. This is an essential part of commercial truck insurance, and is also paid for by the trucking company you sign with.
Occupational Accident Insurance
Covers injuries you sustain while on the job. Many times this type of insurance is paid for by the Motor Carrier as a perk to attract O/Os.
Best Owner Operator Companies to Lease Onto
When searching for the best lease owner operator programs, beyond comparing the pay per mile, it’s necessary to compare the fine print of the lease agreement.
Some of the major companies with lease programs for owner operators are below. ATS has a great review of lease operator companies. Here are are some popular trucking companies with a lease-on business model:
- CRST
- J.B. Hunt
- J&R
- Nova Lines
- PAM Transport
- Prime, Inc.
- Roehl Transport
- Schneider
- Swift
Questions to ask about the lease agreement insurance requirements
Remember though, to read the lease agreement. As you are comparing your options, make sure to read the insurance section carefully. Here are some questions to ask:
1) Do you pay for Occupational Accident Insurance, or do I? If I pay, what are the requirements?
2) Do you require Bobtail Insurance or Non-Trucking Liability Insurance? If so, what are the limits and requirements?
3) Do you maintain excess liability? What happens if I have an accident and the loss exceeds your primary liability limits?
4) Do you provide general liability insurance? Or do I need that? What about trailer interchange insurance?
5) After a property damage loss, how are potential disputes about liability coverage handled.
6) Who provides coverage of non-owned trailers?
How to Find Affordable Leased Operator Truck Insurance
Insurance isn’t cheap, but smart truckers who shop around can save money.
We can help by connecting you with up to three insurance companies that will provide three different quotes. We have done the legwork and our service makes Its easier to shop more of the companies that specialize in leased owner operator truck insurance.
Comparison shopping like this ensures you get the best policy at the best price. Reducing expenses makes your trucking business more profitable.
Just fill out one form, or call us, and we’ll handle the rest.
