Insurance for Owner Operators Leased to a Carrier.
Your carrier provides coverage while you're under their dispatch. But your lease agreement requires you to carry your own policy — for your equipment, your personal use, and your income protection.
Coverage breakdown
Understanding What Your Lease Requires
Your carrier's policy and your own coverage serve different purposes. Here's exactly how the split works — and what falls on you.
While under dispatch — carrier covers
Per your lease agreement — your policy
Coverages for Leased Owner Operators
The coverages your lease requires — and the ones that protect your income and equipment when your carrier's policy doesn't.
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Non-Trucking Liability
Lease RequiredRequired by most carrier lease agreements (per FMCSA leasing regulations at 49 CFR Part 376). Covers your liability when operating your truck for personal use and not under dispatch for your carrier as defined by your owner operator lease agreement. This protects you for use of your truck outside of the scope of your lease agreement. Your carrier's policy does not apply in these situations. For a detailed guide on what NTL covers and when the carrier's coverage stops, read our non-trucking liability insurance guide.
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Physical Damage
RecommendedYour carrier's insurance may not cover your truck or trailer. Physical damage protects your equipment against collision, theft, fire, and vandalism. Required by your lender if financed and critical protection even if it's paid off. Your truck is your asset.
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Roadside Assistance
RecommendedA breakdown on the side of the highway costs you time, loads, and money. Roadside assistance covers towing, tire changes, fuel delivery, and emergency labor when you're stuck. Stops a blown tire or dead battery from losing you money.
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Rental Reimbursement
RecommendedIf your truck is in the shop after a covered loss, you're not earning. Rental reimbursement covers the cost of a substitute vehicle while your rig is being repaired — keeping you on the road and your income moving while the claim is settled.
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Occupational Accident
RecommendedAs an independent contractor, you're not covered by your carrier's workers' compensation. If you're injured and can't drive, there's no employer coverage to fall back on. Occupational accident covers medical expenses, temporary and permanent disability income replacement, and accidental death and dismemberment. One of the most overlooked coverages in trucking — until you need it.
You Own the Truck.
Your Carrier Owns the Authority.
If you drive under a carrier's operating authority as an independent contractor, this coverage is built for your situation, not your carrier's. You're responsible for your equipment, your personal liability, and your income. They're not.
This is the most common setup in trucking. We find you an agent that specializes in leased owner-operator coverage across all major carriers and operation types. If you're thinking about getting your own MC number and running freight under your own authority, see what own authority insurance involves before you make the switch.
Built for operators running
- Dry Van
- Flatbed
- Reefer
- Tanker
- Auto Hauler
- Hotshot
What Leased-On Insurance Costs in 2026
Most leased-on owner operators spend $4,400–$7,400 per year for their full coverage package. Here's how each piece breaks down.
Or roughly $370–$620 per month financed. That's well below the $12,000–$20,000 an own-authority operator pays — because your carrier's policy covers primary liability and cargo while you're under dispatch. That coverage stops the moment dispatch ends.
What Drives Your Number
- Truck value (physical damage rate)
- Operating state
- Driving record
- Coverage limits selected
Last reviewed May 2026.
Questions About Leased-On Coverage
Straight answers about the coverage your lease agreement requires and why you need it.
Non-trucking liability (NTL) provides liability coverage when you are operating your truck for personal use and not under dispatch for your carrier as defined by your owner operator lease agreement. Per most owner-operator lease agreements, NTL is a required coverage because your carrier's insurance — mandated under 49 CFR Part 387 — only applies when you are under their dispatch actively hauling their freight. NTL covers you any time you are operating outside that scope.
Probably not. Your carrier's primary liability covers third-party claims — bodily injuries or property damage to others — while you are under their dispatch. It does not cover damage to your own truck or trailer. Physical damage coverage is your responsibility and protects your equipment from collision, theft, fire, and other losses. If your truck is financed or leased, your lender requires physical damage coverage. If it's paid off, you still need it — your truck is your business.
As an independent contractor, you are not covered by your carrier's workers' compensation insurance. If you're injured and unable to work, you have no income and no employer-provided coverage to fall back on. Occupational accident coverage provides medical expense reimbursement, temporary and permanent disability income replacement, and accidental death and dismemberment benefits. It's one of the most important — and often overlooked — coverages for leased owner operators.
Most owner-operator lease agreements specifically require you to carry non-trucking liability insurance and may also require physical damage coverage for your truck and trailer. Some carriers specify minimum limits in the lease. Review your lease agreement carefully — driving without the required coverages is a breach of your lease agreement and could result in termination. If you're unsure what your lease requires, submit your information and an agent will help you sort it out.
Coverage requirements during orientation vary by carrier. Some carriers extend their insurance coverage during the orientation period; others require you to have your own non-trucking liability in place before your first day. Do not assume you're covered during orientation without verifying it directly with your carrier. Submit your information before your orientation date — an agent can typically have coverage in place same day so you're protected from day one.