Updated 2026-11-01
Before you sign on with a motor carrier, read the insurance section of the lease as carefully as the pay terms. It decides which risks the carrier covers and which ones land on you.
What federal rules require
Federal truth-in-leasing rules at 49 CFR Part 376 govern leases between motor carriers and owner-operators. Among other things, the lease must state the carrier's legal obligation to maintain the public liability insurance required by federal law. It must also say who is responsible for any other insurance for the leased equipment, such as bobtail or non-trucking liability, and if the carrier will charge insurance costs back to you, the lease must specify the amount.
Questions to ask before you sign
- Which policy covers my liability when I am off dispatch, and do I have to buy it?
- Do I need physical damage coverage, and what deductible does the carrier accept?
- Is occupational accident coverage required, and can I buy my own plan?
- Will the carrier charge insurance back to me, and how much per settlement?
- Does the carrier need to be named as additional insured or certificate holder on my policies?
- What happens to coverage, and to any prepaid premium, if the lease ends?
Chargebacks
When a carrier offers insurance through its own program and deducts the premium from your settlements, the lease must disclose those charges. Ask for a copy of the policy or certificate showing your coverage, the limits and the deductibles. If the charge changes, the lease should explain how you are told.
Ending the lease
Leases usually require written notice to terminate. When the lease ends, the carrier's liability coverage for your truck ends as well. If you are moving to another carrier or your own authority, plan the new coverage so it starts the same day.
When to get help
If the lease language is unclear, ask the carrier to explain it in writing. An attorney familiar with transportation contracts can review a lease before you sign, and an insurance agent can compare the carrier's program with outside options.