A leased owner-operator is getting their own authority
Lease on vs own authority
The difference is whose MC number the load moves under, and so whose liability policy answers for it. Leased on, a written lease gives the motor carrier exclusive possession and control of your truck, and the load moves under the carrier's authority, which FMCSA grants only with the carrier's insurance on file. Under your own authority you are the motor carrier: FMCSA will not grant the authority until your insurer has filed proof of the federal minimum, the authority stays in effect only while that insurance does, and the cargo limit a broker asks for is yours to buy.
Updated . Written by Andre Beukers, principal at Redoubt, a commercial insurance agency in Salt Lake City, not a government office.
How does the insurance differ, leased on or under your own authority?
Leased on, 376.12(j)(1) requires the lease to state the carrier's legal obligation to maintain insurance "for the protection of the public" and to "specify who is responsible for providing any other insurance coverage for the operation of the leased equipment, such as bobtail insurance." Under 376.12(j)(3) the lease also sets the conditions on which cargo or property damage can be deducted from your settlements.
Under your own authority the filing and the policy behind it are in your name. FMCSA "will not grant operating authority registration until the registrant has in effect the minimum levels of financial responsibility on file with FMCSA," and your insurer, as FMCSA's "financial responsibility provider," files that proof on your behalf. FMCSA's floor under 49 CFR 387.9 is $750,000 for a for-hire carrier of nonhazardous property in interstate commerce with a truck of 10,001 lb GVWR or more. FMCSA's filing chart lists a BMC-91 or BMC-91X as the filing and $0 of cargo for that class; eCFR marks the sections behind the chart and those forms, 49 CFR 387.303 and 387.313, suspended indefinitely, and FMCSA's page still applies them. Brokers set their own floors: TQL lists a "Minimum $1 million auto liability insurance" and a "Minimum $100,000 cargo insurance policy," and Arrive Logistics asks for $100,000 cargo, $1 million auto and $1 million general liability.
The authority then lives on the policy. 49 U.S.C. 13906(a)(1) says "A registration remains in effect only as long as the registrant continues to satisfy the security requirements of this paragraph."
| Item | Leased on | Own authority |
|---|---|---|
| Whose authority the load moves under | The carrier's, which has exclusive possession and control of the truck | Yours |
| Liability insurance for the public | The carrier's | Your own policy, at or above FMCSA's 49 CFR 387.9 floor |
| Proof on file with FMCSA | The carrier's, as the registrant under 49 U.S.C. 13906 | Your insurer's filing on your behalf, before FMCSA grants your authority |
| Cargo | The lease says when cargo damage comes out of your settlements | FMCSA's chart lists $0 for general freight; TQL and Arrive ask for $100,000 |
| Physical damage on your truck | Whoever the lease names; Landstar says its BCOs pay for it | Yours to decide; FMCSA's chart sets no figure |
| Pay | What the lease states, for example a percentage of revenue | The rate you book |
| Name and USDOT number on the door | The carrier's | Yours |
Sources: 14, 15, 16, 17, 21, 18, 19, 20, 23, 24, 22, 10, 28, 12, 9
Frequently asked questions
Can I rent someone else's MC number instead of leasing on?
No. FMCSA's March 19, 2026 bulletin permits leasing equipment to a motor carrier under Part 376 and prohibits the sale, purchase or lease of a USDOT number or operating authority itself.
Sources
Where these answers come from
Each entry carries the exact words of the source so you can check it yourself. Forms, rules and carrier pages change; read the current version before acting.
- 1. FMCSA, Get Operating Authority (Docket Number), overview
“Transport federally-regulated commodities owned by others or arranging for their transport, (for a fee or other compensation, in interstate commerce)”
fmcsa.dot.gov, accessed October 3, 2026. A list item under "In general, companies that do the following are required to have interstate Operating Authority (Docket number) in addition to a USDOT number". Read in a browser; fmcsa.dot.gov returns 403 to curl. Page last updated April 20, 2026. - 2. FMCSA, Get Operating Authority (Docket Number), types of authority
“The type(s) of Operating Authority requested will impact the type and level of insurance that is required by FMCSA.”
fmcsa.dot.gov, accessed October 3, 2026. Read in a browser; fmcsa.dot.gov returns 403 to curl. - 3. FMCSA, Get Operating Authority (Docket Number), filing fees table
“Permanent Authority $300.00 Notice of Name Change $14.00 Reinstate Authority $80.00”
fmcsa.dot.gov, accessed October 3, 2026. Cells of the Filing Fees table, read across. The table is followed by "NOTE: Separate fees must be submitted for each kind of authority sought." Page last updated April 20, 2026, before Motus replaced URS on May 19, 2026; the page text says what FMCSA listed on that date. Read in a browser; fmcsa.dot.gov returns 403 to curl. - 4. 49 CFR 376.2(a), definition of authorized carrier, eCFR
“Authorized carrier. A person or persons authorized to engage in the transportation of property as a motor carrier under the provisions of 49 U.S.C. 13901 and 13902.”
ecfr.gov, accessed October 3, 2026 - 5. 49 CFR 376.2(e), definition of lease, eCFR
“Lease. A contract or arrangement in which the owner grants the use of equipment, with or without driver, for a specified period to an authorized carrier for use in the regulated transportation of property, in exchange for compensation.”
ecfr.gov, accessed October 3, 2026 - 6. FMCSA bulletin, DO NOT Sell, Purchase, or Lease a USDOT or MC Number, March 19, 2026
“Equipment leasing arrangements between motor carriers and owner-operators remain permissible and are distinct from the prohibited sale, purchase, or lease of USDOT Numbers or operating authority registration.”
fmcsa.dot.gov, accessed October 3, 2026. Read in a browser; fmcsa.dot.gov returns 403 to curl. The bulletin names 49 CFR Part 376 and Part 390 Subpart G as the compliant leasing arrangements. - 7. FMCSA crash data collection training, Lesson 2, Motor Carrier Identification, Owner-Operators
“If they have their own operating authority, they may haul loads as a for-hire motor carrier using their vehicle. Alternatively, they can provide their vehicle and driving services to another motor carrier under a lease for a contracted period of time and operate under that carrier's authority.”
ai.fmcsa.dot.gov, accessed October 3, 2026 - 8. 49 CFR 376.11(c), identification of leased equipment, eCFR
“The authorized carrier acquiring the use of equipment under this section shall identify the equipment as being in its service as follows:”
ecfr.gov, accessed October 3, 2026. Paragraph (c)(1) points to the marking rules in Part 390; (c)(2) requires a copy of the lease or a statement on the equipment. - 9. 49 CFR 390.21T(b), marking of self-propelled CMVs, eCFR
“The legal name or a single trade name of the motor carrier operating the self-propelled CMV, as listed on the motor carrier identification report (Form MCS-150) and submitted in accordance with § 390.19T.”
ecfr.gov, accessed October 3, 2026. Paragraph (b)(2) adds the USDOT number; (b)(3) requires "operated by" before the operating carrier's name when another name appears. eCFR marks the companion § 390.21 suspended indefinitely; § 390.21T is the text in effect. - 10. 49 CFR 376.12(c)(1), exclusive possession and responsibilities, eCFR
“The lease shall provide that the authorized carrier lessee shall have exclusive possession, control, and use of the equipment for the duration of the lease. The lease shall further provide that the authorized carrier lessee shall assume complete responsibility for the operation of the equipment for the duration of the lease.”
ecfr.gov, accessed October 3, 2026 - 11. 49 CFR 376.12(b), duration to be specific, eCFR
“The lease shall specify the time and date or the circumstances on which the lease begins and ends.”
ecfr.gov, accessed October 3, 2026 - 12. 49 CFR 376.12(d), compensation to be specified, eCFR
“The amount to be paid may be expressed as a percentage of gross revenue, a flat rate per mile, a variable rate depending on the direction traveled or the type of commodity transported, or by any other method of compensation mutually agreed upon by the parties to the lease.”
ecfr.gov, accessed October 3, 2026. The paragraph opens: the amount "shall be clearly stated on the face of the lease or in an addendum which is attached to the lease." - 13. 49 CFR 376.12(h), charge-back items, eCFR
“The lease shall clearly specify all items that may be initially paid for by the authorized carrier, but ultimately deducted from the lessor's compensation at the time of payment or settlement, together with a recitation as to how the amount of each item is to be computed.”
ecfr.gov, accessed October 3, 2026 - 14. 49 CFR 376.12(j)(1), insurance, eCFR
“The lease shall clearly specify the legal obligation of the authorized carrier to maintain insurance coverage for the protection of the public pursuant to FMCSA regulations under 49 U.S.C. 13906. The lease shall further specify who is responsible for providing any other insurance coverage for the operation of the leased equipment, such as bobtail insurance.”
ecfr.gov, accessed October 3, 2026. The paragraph continues: if the carrier charges any of this insurance back to the lessor, the lease must specify the amount. - 15. 49 CFR 376.12(j)(3), deductions for cargo or property damage, eCFR
“The lease shall clearly specify the conditions under which deductions for cargo or property damage may be made from the lessor's settlements.”
ecfr.gov, accessed October 3, 2026. The paragraph also requires a written explanation and itemization delivered before any deduction is made. - 16. FMCSA, Insurance Filing Requirements, overview
“FMCSA will not grant operating authority registration until the registrant has in effect the minimum levels of financial responsibility on file with FMCSA.”
fmcsa.dot.gov, accessed October 3, 2026. Read in a browser; fmcsa.dot.gov returns 403 to curl. Page last updated March 26, 2026. - 17. FMCSA, Insurance Filing Requirements, who should file proof of insurance and when
“Once an entity applies for Operating Authority (MC/FF/MX), a financial responsibility provider must file the appropriate insurance form(s) on behalf of the applicant.”
fmcsa.dot.gov, accessed October 3, 2026. Read in a browser; the accordion text was read from the page source. - 18. FMCSA, Insurance Filing Requirements chart, Motor Carrier of Property, for-hire non-hazardous row at 10,001 pounds and up
“For-Hire Property Carriers (Non-Hazardous) GVWR ≥ 10,001 pounds $750,000 $0 $0 BMC-91, or BMC-91X, or BMC-82”
fmcsa.dot.gov, accessed October 3, 2026. Cells of one table row, read across: BIPD, cargo, surety bond or trust fund, forms. The chart cites 49 CFR 387.303, which eCFR marks suspended indefinitely; FMCSA's page still applies it. The chart has no physical damage column. - 19. 49 CFR 387.303, minimum limits, effective date note, eCFR
“At 84 FR 51433, Sept. 30, 2019, the suspension was lifted and amendments were made to § 387.303. In that same document, § 387.303 was again suspended indefinitely.”
ecfr.gov, accessed October 3, 2026. Pulled from the eCFR versioner API at 2026-09-30. FMCSA's Insurance Filing Requirements chart still cites and applies 387.303. - 20. 49 CFR 387.313, forms and procedures, effective date note, eCFR
“At 84 FR 51434, Sept. 30, 2019, the suspension was lifted and amendments were made to § 387.313. In that same document, § 387.313 was again suspended indefinitely.”
ecfr.gov, accessed October 3, 2026. Pulled from the eCFR versioner API at 2026-09-30. 387.313(a)(3) is where the BMC 91 and BMC 91X certificates are described; FMCSA's filing page still lists both. - 21. 49 CFR 387.9, schedule of limits, row 1, eCFR
“For-hire (In interstate or foreign commerce, with a gross vehicle weight rating of 10,001 or more pounds) Property (nonhazardous) $750,000”
ecfr.gov, accessed October 3, 2026. Pulled from the eCFR versioner API at 2026-09-30. - 22. 49 U.S.C. 13906(a)(1), security of motor carriers (2023 edition, govinfo)
“A registration remains in effect only as long as the registrant continues to satisfy the security requirements of this paragraph.”
govinfo.gov, accessed October 3, 2026. The paragraph opens: the Secretary may register a motor carrier "only if the registrant files with the Secretary a bond, insurance policy, or other type of security approved by the Secretary." uscode.house.gov was under maintenance on the pull date. - 23. TQL, Carrier FAQs, what do I need to start hauling for TQL
“To haul for TQL we require: Valid MC or US DOT number Minimum $1 million auto liability insurance Minimum $100,000 cargo insurance policy”
tql.com, accessed October 3, 2026. A broker's own requirement for its carriers, as TQL states it. List items run together as the page prints them. - 24. Arrive Logistics, Carriers page, Arrive Carrier Requirements
“Cert of Insurance: $100k cargo, $1M Auto, & $1M commercial general liability coverage Active Common or Contract Authority (365+ days)”
arrivelogistics.com, accessed October 3, 2026. A broker's own requirement for its carriers, as Arrive states it. Two list items run together. - 25. Landstar System, Form 10-K for fiscal 2025, Item 1, Business (SEC EDGAR, filed February 24, 2026)
“independent contractors who provide truck capacity to the Company under exclusive lease arrangements (the “BCO Independent Contractors”), unrelated trucking companies who provide truck capacity to the Company under non-exclusive contractual arrangements (the “Truck Brokerage Carriers”)”
sec.gov, accessed October 3, 2026. Landstar describing its own capacity providers. Read in a browser; sec.gov refuses curl without a declared user agent. - 27. Landstar System, Form 10-K for fiscal 2025, BCO compensation
“This percentage generally ranges from 62% to 70% where the BCO Independent Contractor provides only a tractor and 73% to 77% where the BCO Independent Contractor provides both a tractor and trailing equipment.”
sec.gov, accessed October 3, 2026. The percentage is of revenue generated by the loads the BCO hauls, per the preceding sentence. Landstar's statement about its own leases. - 28. Landstar System, Form 10-K for fiscal 2025, expenses borne by BCOs
“The BCO Independent Contractor must pay substantially all of the expenses of operating his/her equipment, including driver wages and benefits, fuel, physical damage insurance, maintenance, highway use taxes and debt service, if applicable.”
sec.gov, accessed October 3, 2026 - 29. Landstar System, Form 10-K for fiscal 2025, Insurance Segment
“Revenue at the insurance segment represents reinsurance premiums from third party insurance companies that provide insurance programs to BCO Independent Contractors where all or a portion of the risk of loss is ultimately borne by Signature.”
sec.gov, accessed October 3, 2026. The same section names Signature Insurance Company as "a wholly owned offshore insurance subsidiary" of Landstar. Landstar's statement about its own business; pulled by curl with a declared user agent. - 30. Landstar, Carriers page (truck carrier network)
“As a Landstar-approved capacity provider, you will have access to that load board 24/7 to select the freight that meets your business needs.”
landstar.com, accessed October 3, 2026. The page publishes no insurance minimums for carriers. It says: "Call us for more details about how to become a Landstar qualified carrier at 800-435-1791." - 31. FMCSA FAQ, Can I lease my services and operate under another entity's operating authority until my own is active?
“Yes, leasing motor carrier services is permissible if you comply with the requirements under FMCSR Section 376.11.”
fmcsa.dot.gov, accessed October 3, 2026. Read in a browser; fmcsa.dot.gov returns 403 to curl. Last updated May 23, 2023. - 32. FMCSA regulatory guidance, 49 CFR 390.5T, Question 17, owner-operators with their own operating authority
“The existence of operating authority has no bearing upon the issue. The motor carrier is, therefore, responsible for compliance with the FMCSRs by its driver employees, including those who are owner-operators.”
fmcsa.dot.gov, accessed October 3, 2026. Guidance issued April 4, 1997, when authority was issued by the ICC or the Surface Transportation Board. Read in a browser. - 34. Redoubt placement record, 2026-09-28: a market's reply on a tractor leased to another carrier
“We cannot write vehicles leased onto another carrier.”
Redoubt agency records, accessed September 28, 2026. Internal email, quoted in part; the market is not named here. - 35. Redoubt placement record, 2026-09-28: a wholesaler on a second policy for a leased-on unit
“If the unit is already under insured under someone else’s authority and he has bobtail or Non-Trucking Liability in place adding another policy doesn’t really make sense.”
Redoubt agency records, accessed September 28, 2026. Internal email from the wholesaler to Redoubt.
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Elsewhere on the site
How to lease on to a trucking companySigning on with a carrier, and what the lease asks of you.What is bobtail insurance?Bobtail and non-trucking liability for owner-operators who stay leased on.MC number insurance requirementsThe federal limits and who they apply to, in full.FMCSA insurance filingBMC-91 against BMC-91X, who files, and the deadlines.What is MCS-90?The endorsement your own-authority policy carries, and what it does not cover.Do you need cargo insurance?Why FMCSA sets no cargo figure for general freight and brokers set their own.Brokers that work with new authorityWhat brokers ask of an MC in its first year.BMC-91 filingThe insurer's filing that activates and keeps the MC number, in the certificate of insurance guide.Commercial trucking insurancePrimary liability, cargo and physical damage for owner-operators and small fleets.
Talk to Redoubt
Leaving a lease for your own authority?
Text Redoubt your USDOT and MC numbers, the date your lease ends and the insurance terms in the first broker contract you plan to sign. We will tell you what the policy and the filing have to show and what has to happen before your first load.
This is general insurance information, not legal advice or a coverage determination. The policy forms, the endorsements the carrier issues, and the requirement in writing from whoever is asking control.