Sometimes even the people that are part of the trucking industry for many years can get confused about the classification of owner operators, and that is so because owner-operators can appear in many business models. Therefore, owner operators are franchising companies for numerous different industries.
To make it simpler, owner operators are the people that are self-employed as commercial truck drivers. In addition, they can also have a small business that they operate with.
Thanks to the Motor Carrier Act of 1980, owner-operators were put in a way better position than before. With this act owner operators were enabled to take control when it comes to setting load transportation prices, almost the same way that larger motor carriers were doing.
Well, in what the operations of owner-operators and large motor carriers differ is in paying higher insurance rate. And that is one of the main reasons why the rates of owner-operators are higher.
