Lease On vs. Your Own Authority: Which Is Right for You?
By Authority Launcher · Updated October 29, 2026
Quick answer: When you lease on, your truck runs under a carrier's USDOT and MC number. The carrier handles the authority, primary liability insurance filing and usually dispatch, and pays you a percentage of the load or a rate per mile. With your own authority, you keep the full load rate but you pay for and manage everything: insurance, compliance, finding freight and getting paid. Many owner-operators lease on first, then get their own authority once they have savings and a track record.
Side-by-side comparison
| Leased on | Own authority | |
|---|---|---|
| USDOT and MC number | Carrier's | Yours ($300 per authority type to FMCSA) |
| Primary liability insurance filing | Usually carrier's | Yours ($750,000 minimum for most general freight) |
| Freight | Carrier dispatches | You find it (brokers, shippers, load boards) |
| Typical pay | Percentage of load or per mile (commonly about $1.60 to $2.20 per mile) | Full load rate (commonly about $2.00 to $3.50+ per mile when negotiated well) |
| Getting paid | Weekly settlements from the carrier | Brokers often pay in 30 to 90 days unless you factor or use quick-pay |
| Compliance and audits | Carrier carries most of it | Yours, including the New Entrant Safety Audit |
Pay ranges are industry estimates and vary widely by freight, lane and season.
What to check before you lease on
- How pay is calculated, and whether fuel surcharge, detention and accessorials are passed through to you.
- Chargebacks and fees deducted from your settlement (insurance, plates, ELD, trailer rental).
- Who pays for physical damage and non-trucking liability (bobtail) coverage.
- How and when you can leave, and what happens to escrow.
When does your own authority make sense?
- You have one to two months of operating cash saved, beyond your down payments.
- You know your cost per mile and can turn down loads that don't cover it.
- You have, or can build, steady freight relationships.
- Your driving record will get you a reasonable insurance quote.
How to switch from leased on to your own authority
- Apply for your own USDOT number and MC authority in FMCSA's Motus system while you're still leased on.
- Get insurance quotes early, then have your BOC-3 and insurance filed during the 10-day protest period.
- Plan your exit from the lease with your carrier so you're not left without income.
- Start running under your own MC number only once it shows active on SAFER.
Frequently asked questions
Is leasing on safer than getting my own authority?
It's lower risk in that the carrier handles the authority, much of the insurance and freight. You still own the truck and its costs, so read the lease agreement carefully.
Can I keep my own authority while I'm leased on?
You can hold an authority, but you can't use it for loads while your truck is leased to another carrier unless your lease allows it. Many people apply while leased on and switch once their authority is active.
Related: Company driver to owner-operator · How to get an MC number
Ready to start? Answer a few plain-English questions and we'll pre-fill every answer FMCSA asks for, show your fees up front, and walk you through filing in Motus. It's free to file it yourself.