They are always giving the harder operations to their leased owner operators than company drivers.
8. Keep Maintenance And Overhead To A Minimum
The best way that a leased owner operator can keep maintenance and overhead to a minimum is through driving slowly and carefully.
Let’s keep it simple, a leased owner operator is not paid by the miles that he is driving on a daily basis. Straight proportionally that indicated that there is no reason for a leased owner operator not to respect the rules given by the FMCSA and DOT.
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In average, it is the best for leased owner operators to drive between 57 to 60 miles per hour. That way they will stay compliant with all the rules and regulations, but as well they will conserve your brakes in favor of using your engine brake.
Tip: Regular oil changes and grease jobs are the cheapest mechanics you can hire.
9. You Should Know How To Maintain Your Equipment
The most constant owner operator theme is how to maintain your equipment.
So, in that direction keep in mind that you won’t have to necessarily do the overall work. But in addition you will have to know what the mechanic is doing.
Thereupon, if a leased owner operator does not have the required knowledge he can get ripped off by reputable dealers.
Tip: Try to find a shop whose mechanics behave as if your truck is a person.
10. If You Become A Leased Owner Operator Remember: Trucking Companies Are Facing Endless Freight
Actually trucking companies have endless freight that needs to be hauled and are always looking for truck drivers to haul it.
Straight proportionally, you as a leased owner operator should remember not to feel obligated to accept a load from a broker or agent. Brokers and agents every now and then are claiming that they won’t come back to you. Nevertheless, leave those thought aside, because you are not obligated to serve them.
On the other hand, if you want to earn more money, while at the same time you have the means and a schedule that will allow you to haul more loads, then you can take into consideration to get in touch with brokers at the same time.
11. Truck Dealerships Are The Best Places That Leased Owner Operator Can Go
Truck dealerships are the best places where a leased owner operator can go because these places have all the tools needed to properly diagnose problems with the truck.
Moreover, truck dealerships can fix it everything, bumper to bumper.
12. Which Insurance Coverage Do Leased Owner Operator Needs
A leased owner operator needs to have certain insurance coverage that will keep him safe and his truck legal on the highways.
Thereupon, there are few types of coverage that truck drivers need:
1. Physical Damage Insurance
The physical damage insurance is essential for leased owner operators. If you have this insurance coverage and you find yourself in a situation where your truck is damaged- then you won’t have to worry since this type of insurance will pay for all repairs.
Moreover, the physical damage insurance consists of two parts:
- Collision Insurance;
- Comprehensive Insurance;
2. Non-trucking liability insurance
In general liability policies are not covering your tractor when it is detached from the trailer. This insurance will cover you when you are using the truck for personal purposes.
3. Other Coverage
- Primary Liability Insurance- covers damage done to other people’s property;
- General Liability Insurance- covers damage done when you are not behind the wheel;
- Cargo Insurance- covers damage done to the cargo you haul;
- Occupational Accident Insurance- covers injuries you sustain on the job;
13. Leased Owner Operator Permitting Requirements
When a leased owner operator signs a lease agreement to operate for a motor carrier, then the motor carrier becomes the authorized carrier, whereas the leased owner operator will be operating under the motor carrier’s authority, USDOT number as well as a public liability insurance.
The lease agreement that leased owner operators have to sign should:
- Identify all the equipment that is involved in the lease procedure;
- TO be in written, and to clearly identify the parties involved, as well as signed by the equipment owner and the authorized carrier;
- State that the carrier has exclusive possession and control of the leased vehicle;
- Specify the carrier’s legal obligation to have and maintain cargo insurance and public liability insurance pursuant to current state and federal regulations;
- Describe terms under which the loading and the unloading will be performed;
- Define who is responsible for repairing and maintaining the equipment;
- Contain terms and conditions under which the operations will be performed (permit costs, base plates, licenses, fuel costs, fuel tax reporting);
14. Check The Truck That You Want To Lease And Be Prepared For The Payoff
Right before you make a contract and lease a truck, you will have to check out every detail about the truck.
Tip for future leased owner operator: Always ask to see the maintenance records, altogether with an inquire about major repairs.
By checking out these things, the truck driver who wants to lease the truck can get the real picture about the truck. A leased owner operator should always determine if the mileage makes sense for the year of the truck.
Remember: Numerous leases on a particular truck should be one thing to you- A RED FLAG!
On the other side, future leased owner operators should have in mind the lease-purchase plans.
The truck driver should calculate what you will owe in comparison to the truck’s actual estimated value.
15. Leasing A Class 8 Truck: Pros And Cons
Leasing a commercial vehicle/class 8 truck is pretty much similar to paying monthly rent.
Moreover, the money that leased owner operator is paying to the trucking company on a monthly basis is just for the use of commercial vehicle/class 8 truck.