Let’s start by defining who is an owner operator. In essence, it is a truck driver working for himself and transporting items for customers, in other words it is a self-employed driver who is not affiliated with any corporation. The clients are found either via a variety of methods, such as word of mouth or via the specialized websites, or they are regular customers to which the goods are shipped by the operator.
The truck and equipment are either owned or leased. Many drive a single truck, but they can also buy many vehicles and hire additional drivers.
After determining if the conditions are attainable, the process may start.
Steps to becoming an owner operator truck driver:
The following stage is to consider all the financial aspects of being an owner operator. The amount needed depends on whether the vehicle is leased or purchased. In addition, it is important to consider taxes, fees and other expenditures that may arise, and ensure that after all of these have been paid there is money left for living expenditure.
It is also important to note that while being your own boss may be tempting, financial obligations must be taken care of despite the success of the business.
Once the financial aspect of the business is considered, it is important to decide whether the truck and equipment will be purchased or leased. It's an amazing and scary experience to invest cash or take out a loan to buy a truck. It is important to consider the aspects that come with the choice. An informed purchase can be made once you've selected what you want to transport.
Owner operators frequently lease cars since the expenses of vehicle maintenance are handled by the leasing business and can offset some costs related to moving freight. If you are new to the trucking sector and are still learning the trucking operations, this might be beneficial.
You can earn more money if you work on your own power. Keep in mind, however, some of the advantages may be outweighed by the time and effort necessary to obtain loads to transport.
The final, and probably the most important, step would be to consider the insurance coverage. There are many different types of insurances and it is important to consider the most applicable. The type of the insurance will also depend on whether the truck is leased or owned. Should the truck be leased, the lease company may already have insurance for that vehicle but it may cover the minimum.
In most cases, the coverage is limited to main responsibility. As a result, additional protection may be needed, such as:
- Insurance that protects the driver if not currently employed by a motor carrier.
- Insurance that covers the expense of vehicle damage in the event of an accident.
- The insurance that protects the products being transported in the case of damage or theft.
- Insurance which protects the driver if the value of a wrecked vehicle is less than the lease balance.
It is important to analyze different insurance types and plans available on the market to ensure the best deal and cover. Additionally, it is important to know that the insurance chosen should be DOT verified.
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