Owner Operator Insurance, Leased On or Your Own Authority
The McClure Agency is an independent agency that writes owner operator truck insurance both ways you can run: leased onto a motor carrier or under your own authority. We figure out which coverages are yours to buy, shop them across 30+ markets, and keep one agent on your account from quote to renewal.
There is no single "owner operator policy"
Insurance for owner operators comes down to one question: whose authority are you running under? If you are leased onto a motor carrier, their policy handles the big coverage while you are under dispatch, and your job is to fill the gaps it leaves. If you run your own authority, you are the motor carrier, and every line of coverage is yours to buy.
Those two answers buy almost opposite things. The expensive mistakes come from operators caught in between: leased on paper but never listed on the carrier's policy, or paying for non-trucking liability on top of their own primary. Our owner operator requirements and cost guide walks through the split in more detail.
The coverages owner operators buy
Not every owner operator needs every card below. The tag on each one tells you who it is for.
Primary auto liability
Pays for injuries and property damage your truck causes to others, and makes your authority legal to operate. The federal minimum for general freight is $750,000, but nearly every broker and shipper requires $1,000,000.
Own authorityNon-trucking liability (NTL)
Covers you when you drive off dispatch and outside the business of trucking, like taking the tractor home or to the shop. Nearly every lease requires it. Some leases call it bobtail, but the forms trigger differently.
Leased onPhysical damage
Covers your own truck, and your trailer if you own one, for collision, fire, theft, and weather. Lenders require it on financed units. Leased on or not, carry it in your own name so you control your own claims.
BothMotor truck cargo
Pays for the freight on your trailer if it is damaged or stolen. Brokers commonly require a $100,000 limit for general freight, and reefer or high-value loads need more. Leased on, you are usually covered under the carrier's cargo policy, as long as your unit is listed on it.
Own authorityOccupational accident
The one coverage that protects you, the driver. Leased contractors usually are not covered by workers comp, so occ/acc pays medical costs and replaces income if you get hurt on the job. Many leases require it or deduct the carrier's program from settlements.
Often required by leasesGeneral liability
Covers the business beyond the truck, like a slip-and-fall claim tied to your yard. It usually costs a few hundred dollars a year and comes up when a shipper or facility asks for it.
When a contract asksLeased on vs. your own authority
Same truck, same driver, two completely different insurance programs. Here is who carries what on each side.
Leased onto a carrier
Their authority, their dispatch, their primary policy
- The carrier's primary liability and cargo cover you while you are under dispatch, but only if your driver, tractor, and trailer are scheduled on their policies. Get that confirmed in writing from their insurance agent.
- You buy non-trucking liability for off-dispatch driving, physical damage on your own truck, and usually occupational accident.
- Read the lease. It spells out what coverage you must carry, the limits, and what the carrier charges back through settlement deductions for insurance it provides.
Your own authority
Your MC number, your freight, your whole policy
- You buy the full package: primary liability, motor truck cargo, physical damage, and general liability where a contract calls for it.
- Your insurer files a BMC-91X with FMCSA to prove your liability coverage. Your authority does not go active without it, and a lapse gets reported.
- Your primary liability covers you on dispatch and off, so you generally do not need non-trucking liability on top of it.
The rule of thumb: leased on, buy the gaps. Own authority, buy the stack. The mistake to avoid is running with own-authority exposure on a leased-on budget. We break down the tradeoffs in leasing on vs. your own authority, and the off-dispatch forms in bobtail vs. non-trucking liability vs. unladen.
What drives your owner operator insurance price
Owner operators often assume the truck sets the price. It is mostly you, how long your authority has been around, and how you run.
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Years of authority.
The biggest single lever. Underwriters price on history, and a new authority has none, so new-venture pricing can run 30 to 50 percent higher than the same truck with two or more clean years.
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Your driving record.
Years of verifiable CDL experience and a clean MVR open up the best markets. A recent major violation can double a quote or make it hard to place at all, and a large at-fault claim tends to follow you for three to five years.
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Radius and freight.
Local and regional runs price below long-haul, and general freight prices better than reefer, autos, or high-theft loads.
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Credit-based insurance score.
Many carriers lean on it, and for big direct writers like Progressive and GEICO it is a primary rating factor. We also hold markets that do not use credit at all and price on your authority, driving record, radius, and loss history instead.
What does owner operator insurance cost in 2026?
Typical ranges for a single power unit, pulled from our 2026 pricing data. Your quote depends on the factors above, but this is the neighborhood.
| Coverage | Typical range | Notes |
|---|---|---|
| New authority, 1 truck (liability + cargo) | $8,000 – $15,000 / yr | Before physical damage. Liability is usually 60 to 70 percent of the package. |
| Established owner operator (2+ clean years) | $5,500 – $11,000 / yr | Liability plus cargo, before physical damage. Rates ease as your authority ages. |
| Physical damage | 3% – 6% of truck value / yr | On the stated value of your equipment, so a new tractor costs more to cover than a paid-off one. |
| Motor truck cargo ($100,000 limit) | $400 – $1,500 / yr | More for reefer and high-theft freight. |
| Non-trucking liability / bobtail | $40 – $60 / month | The core line for leased-on operators. |
| General liability | A few hundred / yr | When a shipper, facility, or contract requires it. |
Almost nobody pays the year up front. All-in, a single-truck operation typically runs $500 to $2,500 a month financed. The down payment on a packaged policy is usually about 1 to 3 times the monthly payment, while monoline policies often take more than 3 times the monthly. Occupational accident pricing depends on the limits and benefits you pick, so we quote it separately. These are typical ranges, not a quote. For the full breakdown, see our 2026 commercial truck insurance cost data.
Switching from leased on to your own authority
Everything the carrier used to carry becomes yours. Once you apply for your own MC number, you need primary liability filed with FMCSA on a BMC-91X, a BOC-3 naming your process agents, and your own cargo coverage before brokers will load you. FMCSA will not activate the authority until the filing, the BOC-3, and the 21-day protest period have all cleared, so get your insurance application in while the protest period runs.
Two things catch people. Your driving years still count, but the authority is new, so expect new-venture pricing the first year. And keep your non-trucking liability in force until your new primary is bound, then drop it so you are not paying twice. Our new authority insurance requirements guide covers the filings step by step.
Owner operator insurance brokers who know the work
Anyone can sell a truck policy. Getting an owner operator set up right takes reading the lease, knowing the filings, and having more than one market to call.
We read your lease
Send us your lease agreement and we match your coverage to what it requires, NTL where it means NTL and the limits it names. We also help you confirm with the carrier's agent that your driver and unit are on their schedules. Pair that with your own physical damage and non-trucking liability and there is no gap.
Credit and non-credit markets
We are independent, so we run your operation through markets that rate on credit and markets that do not. If a direct writer priced you high because of your score, that is exactly the quote worth re-shopping across our commercial truck insurance markets.
We handle the filings
BMC-91X filings and certificates for your brokers and shippers, handled by us, not left on your desk. When you are ready to go from leased on to your own authority, we already know your operation. Start with the application and we take it from there.
Owner operator insurance FAQ
What insurance does an owner operator need?
It depends on how you run. If you are leased onto a motor carrier, the carrier's primary liability and cargo cover you while you are under dispatch, so you typically buy non-trucking liability, physical damage on your own truck, and often occupational accident. If you run under your own authority, you are the motor carrier, so you buy the full package: primary liability (usually $1,000,000), motor truck cargo, physical damage, and general liability where a contract requires it, with your insurer filing the BMC-91X.
Do I need non-trucking liability if I'm leased on?
Almost certainly. Nearly every lease requires it, because the carrier's policy is built for driving in the business of trucking, under dispatch. Non-trucking liability covers the driving outside that, like taking the tractor home or to the shop on your own time. It typically runs $40 to $60 a month. Some leases say "bobtail" when they mean non-trucking liability, and the two forms trigger differently, so match the form to what your lease requires and how you drive. Our bobtail vs. non-trucking liability guide lays out the difference.
How much does owner operator insurance cost?
For a single truck under your own authority in 2026, liability plus cargo typically runs $8,000 to $15,000 a year on a new authority and $5,500 to $11,000 once you have two or more clean years. Physical damage adds about 3 to 6 percent of the truck's stated value per year. Financed monthly, a single truck usually lands between $500 and $2,500 a month all-in. Leased on, you are mainly buying non-trucking liability at $40 to $60 a month plus physical damage. These are typical ranges, not a quote.
Do I need non-trucking liability on my own authority?
Generally, no. Under your own authority your primary liability is your own policy, on dispatch and off, so buying non-trucking liability on top of it usually means paying twice for a narrower slice of coverage you already have. Confirm how your policy treats personal use of the truck rather than assuming, but do not let anyone stack NTL onto your own primary without a reason.
Does my credit score affect owner operator insurance?
At many carriers, yes. Big direct writers like Progressive and GEICO use a credit-based insurance score as a primary rating factor, so rough or thin credit can push a quote up even when your record is clean. Not every market rates on credit. As an independent agency we hold markets that do not use credit at all and price on your authority age, driving record, radius, and loss history instead. If a direct quote came back high and your record is clean, it is worth re-shopping.
What changes when I switch from leased on to my own authority?
Everything the carrier used to carry becomes yours. You will need your own primary liability filed with FMCSA on a BMC-91X, cargo, a BOC-3 for process agents, and your own physical damage if you did not already carry it. Your years behind the wheel still count, but the authority itself is new, so expect new-venture pricing the first year. Line up coverage while the 21-day protest period runs, and do not cancel your non-trucking liability until your new primary policy is bound and in force.
Start your owner operator application
About five minutes, leased on or your own authority, and it lands with a real broker, not a call center. Numbers back fast.