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What insurance should an owner-operator consider?
Coverage depends on operations and contracts, including liability, cargo, physical damage, and other exposures. Use a qualified insurance professional to identify gaps and exclusions.
How much should I reserve for maintenance?
Use equipment age, condition, service history, and expected work to build a realistic reserve. Include downtime and major repairs, not just routine oil changes.
What is a rate confirmation?
It records agreed shipment terms such as payment and accessorial conditions. Verify parties and details before accepting and retain the complete agreement.
How do I evaluate a load’s profitability?
Consider all miles, time, fuel, tolls, waiting, unloading, and the next load position. A high loaded-mile rate can hide costly deadhead.
What should I review before leasing a truck?
Review payments, maintenance, insurance, deductions, termination, purchase options, and realistic freight revenue. Obtain independent advice before accepting a long-term obligation.
How do I calculate cost per mile?
Divide relevant operating costs by actual miles over a meaningful period. Include fixed costs, empty miles, maintenance reserves, and your own compensation needs.
Is gross revenue the same as profit?
No. Subtract business expenses and account for taxes and reserves. A strong revenue week can still lose money after costs.
What is operating authority?
It is a specific federal authorization required for certain operations. Requirements depend on the business, cargo, and route; verify your needs with FMCSA.
Do all owner-operators need their own authority?
No. Some operate under a carrier’s authority under a lease. Understand which party handles compliance, insurance, dispatch, and payment.
What is the difference between a company driver and owner-operator?
Company drivers generally work as employees; owner-operators operate a business with equipment and contractual obligations. Ownership does not automatically mean independent operating authority.