Owner-Operator Truck Insurance: What You Need and Who Pays
An owner-operator running under their own MC authority must carry at least $750,000 in liability for general freight in trucks of 10,001 lb GVWR or more (49 CFR 387.9), filed with FMCSA. If you are leased on to a carrier, the carrier must carry that public liability, and federal leasing rules (49 CFR 376.12(j)) require the lease to spell out who provides other coverage, such as bobtail, and what you will be charged back.
By TruckerStack Editorial, AK Digital Marketing LLC · Checked against official sources on 2026-11-04 · Editorial policy · Not insurance, legal or financial advice.
Two paths, two insurance setups
| Own authority (your MC) | Leased on to a carrier | |
|---|---|---|
| Who carries public liability | You, at least the federal minimum | The carrier lessee (376.12(j)(1)) |
| FMCSA filing | Your insurer files BMC-91 or BMC-91X | On the carrier's authority |
| Bobtail / non-trucking liability | Usually not needed: your primary policy covers your operation | The lease must say who provides it |
| Cargo | You buy it (brokers require it) | Per lease; deductions must be itemized (376.12(j)(3)) |
| Physical damage | You (lender may require) | Usually you; check the lease |
Under your own authority
FMCSA will not grant operating authority until the required minimum is on file. After you get your docket number, your insurer has to file the form. If nothing is filed within 20 days of publication in the FMCSA Register, FMCSA serves a decision giving you 60 days to comply before the application is dismissed (FMCSA Insurance Filing Requirements). Minimums:
| Interstate for-hire freight | Federal minimum |
|---|---|
| General freight, GVWR 10,001 lb or more | $750,000 |
| Oil (49 CFR 172.101 listed) | $1,000,000 |
| Certain hazmat (e.g. Div 1.1–1.3, bulk 2.3 Zone A) | $5,000,000 |
| General freight, GVWR under 10,001 lb (for-hire) | $300,000 |
Sources: 49 CFR 387.9 and 49 CFR 387.303 (under-10,001 lb tier).
Other federal rules that matter once you are running:
- Keep proof on hand: the MCS-90 endorsement (or MCS-82 for a surety bond) must be kept at your principal place of business, and it is public information you must show on reasonable request (49 CFR 387.7).
- Continuous coverage: policies stay in effect until terminated, and cancellation requires 35 days' written notice (49 CFR 387.7(b)). Coverage must remain in effect at all times (49 CFR 387.301(c)).
- Lapses can cost you your authority: FMCSA says registrants must keep insurance and BOC-3 on file to avoid revocation proceedings. Steps: USDOT, MC, BOC-3 & UCR.
Leased on: what the lease must say about insurance
When you lease your truck to an authorized carrier, 49 CFR 376.12 sets mandatory lease terms. The carrier must have exclusive possession, control and use of the equipment and assume complete responsibility for its operation during the lease (376.12(c)(1)). On insurance, paragraph (j) requires the lease to:
- State the carrier's legal obligation to maintain public-protection insurance under 49 U.S.C. 13906.
- Specify who provides any other insurance for the leased equipment, such as bobtail insurance.
- State the amount charged back to you if the carrier bills you for any of this insurance.
- If you buy insurance through the carrier, provide a copy of each policy on request and a certificate showing insurer, policy number, effective dates, coverage amounts and types, your cost and the deductible for each coverage (376.12(j)(2)).
- Spell out when cargo or property damage deductions can be taken from settlements, and give you a written explanation and itemization before any deduction (376.12(j)(3)).
Related lease protections: chargeback items must be listed with how each is computed (376.12(h)). You cannot be required to buy products, equipment or services from the carrier as a condition of the lease (376.12(i)). If escrow is required, the lease must state the amount and the items it can be applied to, and the escrow must be returned within 45 days of termination (376.12(k)).
Coverages owner-operators carry
- Primary auto liability: the coverage FMCSA requires; your insurer files the BMC-91/91X so it shows on FMCSA Licensing & Insurance.
- Motor truck cargo: not federally required for most freight, but most brokers ask for it in their contracts.
- Physical damage: covers your own truck/trailer; lenders usually require it.
- Non-trucking / bobtail liability: for leased-on owner-operators when not under dispatch.
- General liability, trailer interchange, occupational accident: required by some shippers, docks or carriers you lease to.
Occupational accident coverage is common for leased independent contractors who are not covered by a carrier's workers' compensation. Whether workers' comp applies depends on state law and your contract, so confirm it with your agent and the carrier.
Switching from leased to your own authority
- Get your MC number and line up a policy before you leave the lease, so the filing posts quickly.
- Ask the carrier for written confirmation of the lease end date. Under 376.12(b) the lease must state when it ends, and the carrier's identification has to come off your truck.
- Cancel non-trucking liability only once your primary policy is effective.
- Confirm your filing shows on FMCSA Licensing & Insurance or in our DOT lookup before you book loads.
- Expect brokers to ask for a cargo certificate. See cargo insurance for truckers.
What affects owner-operator premiums
Premiums are set by each insurer and we do not publish price estimates. What moves a quote: authority age (new MCs are rated higher), driver MVR and CDL experience, radius and lanes, commodity, vehicle value and GVWR, garaging ZIP, CSA/inspection history (check yours in our DOT lookup), deductibles and limits above the minimum that brokers often require.
Model the premium per mile in the cost per mile calculator before choosing between leasing on and running your own authority.
Related
- Commercial truck insurance hub
- Insurance minimums table
- Authority & insurance checker
- Check any carrier's insurance on file
- Cargo insurance for truckers
- ELDs for owner-operators
FAQ
How much insurance does an owner-operator need?
Under your own authority, at least $750,000 liability for non-hazardous freight in vehicles of 10,001 lb GVWR or more (49 CFR 387.9), $300,000 if under 10,001 lb, more for oil or hazmat. Brokers usually also require cargo coverage.
Do leased owner-operators need their own liability insurance?
The carrier lessee must maintain the public liability coverage; the lease must say who provides other coverage such as bobtail and what is charged back (49 CFR 376.12(j)).
Can a carrier charge me for insurance?
Yes, if the lease specifies the amount charged back. If you buy insurance through the carrier, you are entitled to a certificate and, on request, a copy of the policy (49 CFR 376.12(j)(2)).
Can my insurer cancel my FMCSA filing suddenly?
Federally required policies remain in effect until terminated, with 35 days' written notice of cancellation (49 CFR 387.7(b)).
What is bobtail insurance?
Coverage for a leased owner-operator's truck when it is not being operated for the carrier. The federal leasing rule names it as an example of insurance the lease must assign to one party.