Owner Operator Min Mileage Requirement

As far as I understand in N.C. to get and keep your IRP tag you have to have and keep continuous coverage from a third party liability coverage .you might buy your own IRP but on your registration is the company you’re leased to insurance company

 

They have continuous coverage.

 

Yes but as far as construction jobs for state projects is true but those are contracts.Ive never heard of but doesn’t mean some might have a contract to lease to a carrier those are almost always agreements.while there similar a contract is binding by law while agreements are what they are agreements which either party can walk away or cancel the agreements at anytime.

 

ok it sounds like then the company your leased to pays a premium for every truck and the company as a benefit to there contractor waive payment for say vacation?But in most cases if a company has 20 trucks they pay a premium for 20 trucks.Now the OP I understand what he’s saying about production.I mean even big companies like Mercer for example let go OO several years ago that they said weren’t productive.For companies that say allow you to choose loads and work when you want there is a line where you’re not creating enough revenue say you only want to work a week out of the month,the insurance they pay is costing them more then the profits there getting in return they will cancel the lease

 

I know that's how it works at most companies. Most companies are getting screwed on insurance costs. And most companies do charge back those costs to operators if they take lengthy amounts of time off. That's in my contract too but I don't get charged back for it because there is no cost to them if I take off long periods. If my truck runs zero miles the month of June they pay zero to the insurance company for cargo/liability on it. They don't cancel the coverage and it doesn't just go away. That's how it should be everywhere. That it isn't the norm is just an example of another screwed up trucking industry racket picking pockets.

 

This is something most small carriers (under 10 trucks) will never see. Once you hit a certain size and after a certain number of years in business you can get insurance where the premium is charged by the mile. It has to do to the liability exposure. Some insurance companies incentives you to do low miles by offering you a rate per mile coverage system. I've come across and talked to a few 15-40plus truck fleets that are on a per mile rate for insurance. My insurance broker told me once I get to 10 trucks she can start looking into those programs.

 

Cargo insurance is on the carrier

Disclosure of the billable to the customer is a legal requirement when someone is leased to a company.

 

Paperwork is easy. There's so darn much of it. Also finding loads can be a big time eater also.
For some it's easier, less stress, to hire(lease) the office work including scheduling.