Everything you need to know about leasing on to a motor carrier as an owner-operator — what it means, how it differs from running under your own authority, pros and cons, carrier selection, lease agreements, insurance, and compensation structures.
return ( What Does "Leasing On" Mean? Leasing on means you sign a lease agreement with a motor carrier to operate your truck (and trailer, if you have one) under their USDOT number and MC authority.
You're still an independent contractor — you own your truck, pay your own expenses, and handle your own taxes — but you haul loads under the carrier's authority and operating name.
Legally, when you're leased on, the carrier is the "motor carrier" responsible for the freight.
Their MC number goes on the bills of lading.
Their insurance covers the load.
Your truck displays their USDOT number and company name (or you carry a cab card showing the lease arrangement).
The arrangement is governed by 49 CFR Part 376 — the FMCSA's lease and interchange regulations.
This federal regulation establishes requirements for written leases, compensation, insurance, and charge-back practices.
Running Your Own Authority Under Your Own Authority You are the carrier of record You buy your own insurance ($12,000–$20,000+/year for new authorities) You find your own loads (load boards, brokers, direct shippers) You handle all compliance — UCR, IFTA, drug testing, ELD, record-keeping You keep 100% of the freight revenue (minus broker fees) Higher earning potential but higher risk and overhead Leased On to a Carrier The carrier provides operating authority The carrier provides liability and cargo insurance The carrier dispatches loads (or you find them and they book through their authority) The carrier handles compliance and back-office work You receive a percentage of the freight revenue or a flat rate per mile Lower overhead but lower gross revenue Pros of Leasing On Lower startup costs — You skip the $300 MC authority fee, $12,000+/year in liability insurance, BOC-3 filing, UCR, and most compliance costs.
Immediate freight access — Established carriers have existing shipper relationships and load networks.
You don't have to spend months building broker relationships or waiting out the 6-month new-authority period that many brokers impose.
Back-office support — Billing, collections, compliance, safety programs, and sometimes fuel card programs are handled by the carrier.
Insurance coverage — The carrier's liability and cargo insurance covers you while operating under their authority.
This alone saves you $1,000+/month compared to your own authority.
Safety record benefits — Your safety performance contributes to the carrier's CSA profile, not your own MC number.
If you're building toward your own authority later, this gives you time to build experience without risk to your own record.
Cons of Leasing On Revenue share — The carrier takes 15–35% of the freight revenue.
On a $3,000 load, that's $450–$1,050 going to the carrier instead of your pocket.
Less control — Depending on the carrier, you may have limited say in which loads you run, what lanes you operate in, or how loads are priced.
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MotorCarrierLeasing.com — 22529 Hwy 189, Elba, AL 36323 — 1-334-316-3198 — USDOT# 4256528
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