If you lease onto a motor carrier, most of your liability coverage rides on that carrier’s policy and its FMCSA filing while you are under dispatch. Run under your own authority and you buy that coverage and file it yourself. Leasing on fits a driver who wants fewer moving parts. Own authority fits an operator ready to carry the full stack, and the control that comes with it. Here is who carries what under each model.
Who carries what under each model
The clearest way to compare the two is coverage by coverage. What a lease carries for you varies, so treat this as the pattern, not a rule for your contract.
| Coverage | Leased on | Own authority |
|---|---|---|
| Primary liability | Carrier’s policy and filing, while under dispatch | You buy and file it, generally on a BMC-91 or 91X |
| Non-trucking liability or bobtail | You carry it for off-dispatch use | Folded into your own primary program |
| Physical damage on the truck | Often you, depending on the lease | You |
| Motor truck cargo | Sometimes the carrier, often you | You, with filings where required |
| Occupational accident or work comp | You, as the lease requires | You |
What leasing on covers
Under a lease, the carrier’s primary liability policy generally responds while you are under dispatch, hauling their freight. That filing is what satisfies the authority the carrier runs under. It is real coverage, and it is the reason leasing on feels simpler: one large piece of the program is handled while you are working for the carrier.
What it does not do is follow you off dispatch. The moment you are not hauling their load, that policy generally steps back, which is why bobtail or non-trucking liability sits with you. The lease draws that line, and the line is exactly where leased operators get surprised.
What own authority puts on you
Run your own authority and the carrier is no longer filing on your behalf. You buy primary liability and file proof of it, usually on a BMC-91 or 91X, and you keep that filing active without a lapse. Cargo filings may apply depending on what you haul and who you contract with. Physical damage, cargo, and any occupational coverage are yours to place and maintain.
Nothing is carried for you anymore. That is the tradeoff for keeping more of each load and choosing your own freight.
The cost drivers, not the dollar amounts
The comparison is not about a single price. It is about which cost drivers move under each model. Under a lease, part of your coverage cost is embedded in the deal, sometimes as deductions, so it can be hard to see the full number. Under your own authority, every coverage is a line you pay and file directly.
What drives the total either way tends to be the same set of factors: your driving and safety record, radius and commodities, equipment values, the limits and filings required, and your loss history. New authority generally reads as higher risk to underwriters until a track record exists, which is one reason a fresh switch can cost more before it settles.
Which model fits whom
Leasing on often fits a driver who values simplicity and a steady dispatch, and who is comfortable that the carrier carries the primary filing. Own authority often fits an operator who wants control of freight and rates and is ready to buy, file, and maintain the full program without a lapse. Neither is automatically cheaper. The right read is which responsibilities you want to hold and which you want handled.
Questions to ask your advisor
- Which coverages does my lease actually carry for me, and which are mine?
- If I move to my own authority, what do I have to buy and file that I do not carry now?
- How do my filings stay active without a lapse under each model?
- Where are the gaps between dispatch and personal use in my current setup?
- What cost drivers change for me specifically if I switch?
Deciding between leasing on and your own authority is an insurance decision as much as a business one. A review lays the two side by side so you can see who carries what.
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