please explain Owner Operator why lease to a company?

this might help answer your question... I was just quoted, this week, an isurance rate for Cargo $100,000 and Liabilty $1,000,000. This is the required insurance before most, if not all, brokers will load you. The rate is $15,000/yr.

If you go to JB Hunt for the extra .11/mile and run 100,000 miles you are still .03 cents short just covering your insurance for the year. And you gave up your freedom to haul for anyone else. I think your Excel spreadsheet is missing some real data.

 

I was wondering if I was the only one paying far less! I was leased on to a smaller company (60 trucks) and paying all this anyway and getting 88%. So I was basically giving them 12% to book my loads. Actually my insurance cost would be a little less with my own authority as bobtail isn't necessary. $9400 a year leased on and $8200 my authority. I paid the plates leased on as well. They registered my truck and took it out of my settlement.
So the only question for me is can I book loads for close to as much as they did. Mind you they booked broker loads only. I did ok with them and think I can do just as well and not pay them 12% to put their name on my truck. Even if I pay 5% to factor, which 3 brokers I have offer quickpay at 1.5%-2% and could keep me running nearly all the time themselves and no need to factor their loads.

 

Where in God's name did you get quoted $15,000?

 

Good Lord $15000.00, my insurance is 6500.00/yr. With a top provider. To the OP you are confusing lease with contract as one and the same but they are not. In this market a one truck operator with his own authority has a tough go these days except in a few areas. I have done $4 plus per all miles on 70000 miles in the oilfields but nothing like that last very long. I would suggest you lease until you learn the biz A LOT better./SIZE]

 

yeah my insurance is about 9k a year and I am in Louisiana which has the highest insurance rates in the country

 

How long have you folks had you authority? Was it way higher than you are paying now? I'm hoping for a significant decrease in insurance after my second year.

 

I have had my authority for 3 years don't expect any decreases only increases when I first got my authority it was 7k the following year it was still 7k the next year with no other marks it was going to jump to 11k so I shopped around and got it for 9k

 

Here's something that will make you feel great.. My first year was at 13k and second current is 13.5k clean license clean record no accidents no dui. Looking around for a new company after this year for sure.

 

My authority is 10 yrs old and my insurance has gone down every year. My deductible started at $1000 but now is 200 and a $5000.00 tow allowance, I'm with great west casualty and my IRP's run me 1870.00 for the lower 48.