Leasing onto an established carrier is one of the smartest ways to run a truck without buying your own authority: their filings, their liability, their freight relationships, and a settlement check every week. But "leased on" done wrong is also one of the fastest ways to get burned, hauling under a lease that doesn't protect you, for a carrier that mishandles your money, with insurance gaps you don't find until there's a claim. The difference comes down to three things: the lease agreement, the company you sign with, and how you're insured. Here's how to get all three right.

If you're still deciding between leasing on and running your own authority, start with leasing on vs. your own authority: who insures what. This article is about doing the leased-on path properly.

What a proper lease agreement has to include

A motor-carrier lease isn't a handshake. Federal law (49 CFR Part 376) spells out what a compliant lease between an authorized carrier and an owner-operator must contain. If a carrier hands you a lease that's missing these, that tells you something about the carrier. The pieces that matter most:

  • Exclusive possession and responsibility. The lease must state that the carrier has exclusive possession, control, and use of the equipment and complete responsibility for its operation for the term of the lease. This is the clause that puts their authority and their insurance behind you while you're working.
  • Clear compensation, and your right to see the numbers. The lease must state how and how much you're paid. If you're paid a percentage of revenue, you have the right to see the rated freight bill (or a document with the same rating info) for the loads you hauled. A carrier that won't show you what the load actually paid is a carrier to walk away from.
  • Who pays for what. Fuel, tolls, permits, base plates, maintenance: the lease must spell out which costs are yours and which are theirs. No vague "expenses deducted as applicable."
  • Insurance responsibility, in writing. The lease must identify who provides each type of insurance and what it costs, including any coverage the carrier provides on your behalf and charges back to you. (More on how you specifically should be covered below.)
  • Itemized chargebacks, with proof. Anything the carrier can deduct from your settlement must be listed, and you must be able to get the documents that back up each deduction. Undisclosed chargebacks aren't allowed.
  • No forced purchases. The carrier cannot require you to buy or rent their products, equipment, or services as a condition of the lease.
  • Escrow handled correctly. If they hold an escrow (maintenance, tire fund, etc.), the lease must say what it can be used for, give you an accounting, and return the balance within 45 days of termination.
  • Receipts for the equipment. You get a receipt when the carrier takes possession, and one when it's returned. That receipt is what starts and ends their responsibility for the truck.
The McClure Agency coverage cheat sheet titled 'Leasing On? Here's How Insurance Actually Works.' It explains that you must be listed on the motor carrier's auto liability and cargo policies (being an additional insured is not the same), that you typically need your own bobtail/non-trucking liability which McClure sells for about $40 to $50 a month, and that physical damage protects your own truck. A side panel breaks down what auto liability, cargo, non-trucking liability, and physical damage each cover.
How the coverage actually stacks up when you're leased on. Save it for when you're reviewing a lease.
Sample lease agreement template (FMCSA 49 CFR Part 376)A fill-in starting point covering the provisions a compliant lease must address. Use it to understand a lease you're handed, or to see what yours is missing.
Download the template (PDF)

This template is not legal advice. We're an insurance agency, not a law firm. The sample is an educational starting point only. Lease rules are federal (49 CFR Part 376) and your state's law and your specific deal can change what you need. Have a qualified transportation attorney review any lease before you sign it. We make no warranty that the template is complete or right for your situation.

What to look for in a lease company

The lease can be perfect on paper and the carrier can still be the problem. Before you sign, vet the company the way they vet you:

  • Are they real and in good standing? Check their authority and safety record (a quick DOT lookup shows active authority, out-of-service orders, and their safety picture). A carrier with shaky authority is a carrier whose authority you're now running under.
  • Will they actually schedule you? Ask directly: will my driver, tractor, and trailer be listed on your auto liability and cargo policies, and can your insurance agent confirm it in writing? If they dodge this, that's the whole ballgame. Being handed a certificate is not the same as being on the policy.
  • How do settlements work? Transparent, itemized settlements with access to the rated freight bills. Vague deductions and "trust us" math are a red flag.
  • What are the chargebacks, really? Reasonable, disclosed, and documented. Watch for stacked fees, inflated insurance chargebacks, and mandatory purchases dressed up as "programs."
  • How's the escrow handled? Clear purpose, real accounting, and a 45-day return after you leave. Escrow that's hard to get back is a warning sign.
  • What's their pay history and reputation? Ask other leased operators. Slow pay, surprise deductions, and high turnover tell you what your experience will be.
  • How easy is it to leave? A fair termination clause matters. If getting out is designed to be painful, ask why.

How you should be insured when you're leased on

This is the part operators get wrong most, and it's the part we fix every day. Even when the carrier's program is behind you, some coverage is still yours to carry, and you want it that way. The cheat sheet above lays it out; here's the short version:

  • Be on the carrier's auto liability and cargo policies, actually scheduled. Not an additional insured, scheduled: your specific driver and units on their policy, confirmed by their agent in writing. (Why "additional insured" isn't coverage is covered in leasing on vs. your own authority.)
  • Carry your own non-trucking (bobtail) liability. It covers you when you're driving but not under dispatch, the gap the carrier's policy is not built to cover. We write it for about $40 to $50 a month, and nearly every lease requires it.
  • Carry your own physical damage, in your name. Your truck is the asset your whole business sits on. On your own policy, you control the claim, not the carrier. Never rely on the carrier's physical-damage program if you can hold your own.

Get this right and you're not just compliant, you're runnable everywhere: your certificate matches your operation, and brokers and shippers (Amazon especially) don't flag you at pickup. Get it wrong and a lapse or a scheduling gap can get your authority and even your driver blacklisted, which we get into in the leasing-vs-authority guide.

How McClure helps

We set leased-on operators up the right way, every day. We verify with the carrier's agent that your driver and equipment are actually scheduled on their liability and cargo, write your non-trucking liability at around $40 to $50 a month, and put physical damage in your name so your truck's claims stay yours to control. Bring us the lease you're being offered and we'll tell you exactly where you stand and what to carry. Start here or run a DOT lookup on the carrier first.