Should You Get Your Own Authority or Stay Leased On?
The Pros, Cons, and Real Costs Every Truck Driver Should Know
For many truckers, going from leased-on to running under your own authority feels like the big next step.
It promises freedom, higher rates, and full control over your business. But with more independence comes more risk — and a lot more responsibility.
So, is it worth it? Let’s break it down.
🧾 What It Means to “Have Your Own Authority”
Getting your own authority means registering with the FMCSA to operate as a for-hire carrier. You’ll need:
A USDOT and MC number
Proof of insurance (auto liability, cargo, etc.)
A BOC-3 filing and UCR registration
IFTA, IRP, and other state permits
Ongoing compliance and recordkeeping
Once approved, you can book loads directly, negotiate your own rates, and run as an independent carrier.
🔁 Staying Leased On: The Simpler Path
When you lease on to a motor carrier, you operate under their authority. They handle:
Load booking (often through a dispatcher)
Insurance and permits
Billing and collections
Compliance and audits
You get paid a percentage of each load (usually 70–85%), and they keep the rest.
It’s easier — but you’re giving up control and a chunk of your income.
💸 Real-World Costs of Going Independent
Running under your own authority isn’t cheap. Expect:
$10,000–$25,000/year in insurance
Quarterly IFTA tax filings
$1,000–$3,000 in licensing and permit fees
Higher fuel and factoring costs if you don’t have volume
And don’t forget: You have to find your own loads — often from brokers — which takes time and negotiation skills.
✅ So, What’s the Right Move?
Ask yourself these questions:
Are you ready to handle the business side — paperwork, taxes, compliance, dispatching?
Do you have cash flow or savings to handle startup and early expenses?
Are you confident in your ability to find loads consistently?
Do you want to build a scalable trucking company, or are you happy as a solo operator?
If you’re just starting out or value simplicity, staying leased on may be best.
If you're experienced, motivated, and ready to grow, getting your own authority could unlock bigger profits — and long-term freedom.
🧠 Final Thought
There’s no one-size-fits-all answer. Some truckers thrive with their own authority. Others burn out from the stress and red tape.
Whichever route you take, know your numbers, understand your risks, and build a strong foundation — especially when it comes to insurance, compliance, and cash flow.
Need help quoting insurance or getting started with your own authority?
👉 Reach out to Trucking IQ — we help drivers make smarter, safer, and more profitable decisions on the road.