Owner Operator leased on but

What does the contract say?

by regulation there has to be a detailed contract.

 

There are a lot of different deals out there. At 17.5%, who’s providing the trailer? Who’s providing the fuel card? There are a lot of questions. The reality is there are a ton of “owner operators” that just aren’t intelligent enough to be on their own.
It could also be an insurance thing. Someone gets a $30-40k new authority insurance quote and instead leases to someone with history and a mileage based policy, maybe based out of a cheap state and insurance is less than $10k. $30k difference in insurance is a $200k annual breakeven.

 

If you’re leased on to a reputable carrier the only insurance you should be paying for is your non-trucking liability. You shouldn’t be paying for their liability and cargo, that’s why you’re giving up a percentage.

 

And some percentage means different things. 10%-15%means finding your loads., pays commercial insurance.
15-20% means you get dispatch and company can pay $500 rebate for your insurance,

20-25% you get dispatch, company will pay $1000 rebate from your insurance.

The rebates aren’t mandatory but sometimes some will do that, so say insurance payment is $1500, you’ll pay on one $1000, company pays $500, other percentage, you pay the $500, company pays the $1000.

You don’t pay the liability or cargo on company, just your truck, same as if you lease on to any major carrier, mine was like $300/week insurance at Landstar and thinking it was $350/week insurance payment at Gulf States, which included bobtail.

 

Most of the time the trailer issues when a carrier wants to charge the Owner Operator a trailer rental free but still take 20% Plus insurance fees ELD fees, Trailer rental insurance, tolls, fuel (only a 5% discount card at one fuel franchise only) is a scam to generate off of leased on o/o,'s who don't know better. Its a real bad situation when they never show the rate cons they're giving you & use their 'buddies/favorite' o/o's for those short haul $3500 loads whiles you get the LTL loads with 8 daily stops for $1400 total.

True, its a money making scheme for some carriers who only run a lease on o/o's even if their insurance rates are charged back to the o/o's but the carrier has a higher than normal insurance rate.

 

[QUOTE="Trucker K, post: 12420057, member: 279634]



True, its a money making scheme for some carriers who only run a lease on o/o's even if their insurance rates are charged back to the o/o's but the carrier has a higher than normal insurance rate.[/QUOTE]
A money making scheme? Why else would they be in business?

 

Most everyone charges insurance for their truck.
Why would you expect the company to pay for your insurance, granted it the companies liability insurance nor the cargo, but the cost of the trucks insurance.

The 20% wouldn’t cover all the fees, ELD, tolls, and why pay for their fuel? Maintenance?
Then you’d just put another company truck and give 25-30% instead of 80/20.

Granted there’s a bunch who charge extra, and play favorites, but a few are the old way, like if you want to run, here’s the load, make it happen, safely, no tickets, jut get it there, and give a heads up and you’ll have another reload waiting.

 

I’ve leased on where they charge 15%. I paid for everything, insurance, plates, fuel etc. their 15% covers dispatch, ifta, factoring, and using their fuel card discount.

It isn’t bad I don’t think… if they dispatch real good and have some customers it’s profitable for everyone. If you’re ambitious though you can get your own authority and the increased insurance rates are paid for by not paying the 15%.

 

How about the trailer? Your own or did the 15% pay for that too?

 

Physical damage for the tractor if you wanted it