The 60-Second Comparison
| Factor | Company Driver | Owner-Operator |
|---|---|---|
| Gross pay | $55K-$80K/yr | $150K-$300K/yr gross |
| Take-home pay | $55K-$80K/yr | $40K-$100K/yr net |
| Startup cost | CDL school ($3K-$10K) | $15K-$50K+ cash needed |
| Insurance | Company pays | $12K-$25K/yr your cost |
| Fuel | Company pays | $50K-$80K/yr your cost |
| Maintenance | Company handles | $15K-$25K/yr your cost |
| Health insurance | Usually offered | You buy it yourself |
| Retirement | 401(k) often available | You fund it yourself |
| Schedule control | Limited | High (you choose loads) |
| Financial risk | Low | High |
| Income ceiling | Capped by CPM | Uncapped (but so are costs) |
The Company Driver Path
You drive someone else's truck. They handle the business. You get a paycheck.
What You Get
Predictable income
CPM (cents per mile) or salary. You know what's coming. No surprise $3,000 repair bills eating your month.
No capital needed
Just your CDL and a clean record. No down payment on a truck, no $20K insurance premium, no $5K in permits.
Benefits (usually)
Health insurance, dental, vision, 401(k), paid vacation. Owner-operators pay $500-$1,500/month for family health coverage alone.
No business headaches
No IFTA filings, no IRP registration, no UCR, no BOC-3, no drug testing consortium, no DOT compliance files to maintain.
Someone else handles breakdowns
Truck breaks down in Kansas at 2 AM? Call dispatch, they figure it out. You don't pay the $8,000 turbo replacement.
Easier to start
Get your CDL, pass a physical, clean background check. You could be driving in 6-8 weeks.
What You Give Up
Capped income
Most company drivers top out at $75K-$85K. The best carriers pay $90K+ but you're still on their schedule.
Limited control
They choose your loads, routes, and schedule. "We need you in Miami by Thursday" — whether you want to go or not.
No equity
10 years of driving and you own nothing. No truck, no authority, no business to sell. Your career depends on someone else's company.
Company politics
Dispatchers playing favorites, policy changes, forced dispatches, and terminal drama. The truck life isn't immune to office politics.
Realistic Company Driver Income
| Experience Level | CPM Range | Annual (120K miles) | + Benefits Value |
|---|---|---|---|
| Entry (0-1 yr) | $0.40-$0.50 | $48K-$60K | +$8K-$15K |
| Mid (2-5 yr) | $0.50-$0.65 | $60K-$78K | +$10K-$18K |
| Experienced (5+ yr) | $0.60-$0.80 | $72K-$96K | +$12K-$20K |
| Specialized/Hazmat | $0.70-$1.00+ | $84K-$120K | +$12K-$20K |
Benefits value includes health insurance (~$6K-$12K), retirement match (~$2K-$4K), paid time off (~$2K-$4K), and employer-paid taxes (FICA, workers comp, unemployment).
The Owner-Operator Path
You own the truck. You run the business. The ceiling is higher — but so is the floor.
What You Get
Higher income potential
Top owner-operators net $100K-$150K+. You can't reach that as a company driver without going into management.
Total control
Choose your loads, lanes, schedule, and home time. Don't want to run I-95 in winter? Don't bid on those loads.
Tax advantages
Fuel, maintenance, meals, truck payment, insurance, phone — all deductible. Per diem alone can save $10K-$15K in taxes.
Building equity
Every truck payment builds ownership. After 5 years, you have an asset worth $30K-$60K and a business with value.
Pride of ownership
Your name on the door. Your truck, your rules, your reputation. For many truckers, this is the real reason.
Scalable
Start with one truck, add another when ready. Some owner-operators grow into small fleet owners running 3-10 trucks.
What You Take On
All the risk
No loads this week? You still owe $2,500 for the truck payment, $1,000 for insurance, and $400 for permits. The bills don't stop.
Massive startup costs
$15K-$50K cash minimum before you haul your first load. And the first 90 days are the most expensive you'll ever run.
You ARE the business
Bookkeeping, compliance, maintenance scheduling, invoice chasing, tax planning — it's all you. You can't just drive anymore.
No safety net
No health insurance from an employer. No paid vacation. No sick days. Your truck sits, you don't eat.
The Real Numbers: Three Owner-Operator Scenarios
Same truck. Same market. Different outcomes based on how you run the business.
Runs 2,500 miles/week avg. 48 weeks/year. Has dedicated lanes. Minimal deadhead. 3+ years experience.
Runs 2,000 miles/week avg. 48 weeks/year. Mix of spot and contract freight. Some slow weeks.
New authority, older truck with problems, chasing cheap spot loads, reactive maintenance, high insurance due to no history. This is survivable for 1-2 years — but it breaks people.
What It Actually Costs to Start
| Expense | Low End | High End | When Due |
|---|---|---|---|
| Truck down payment | $5,000 | $25,000 | Before anything |
| Insurance (first payment) | $3,500 | $8,000 | Before authority activates |
| LLC formation + EIN | $100 | $500 | Week 1 |
| USDOT + MC number | $0 | $300 | Week 1 |
| BOC-3 filing | $30 | $50 | Week 1 |
| UCR registration | $176 | $176 | Week 1 |
| Drug testing consortium | $150 | $300 | Before first load |
| IFTA decals | $0 | $15 | Month 1 |
| IRP registration | $500 | $2,500 | Month 1 |
| ELD device | $200 | $500 | Day 1 |
| Truck lettering | $100 | $300 | Day 1 |
| Operating cash (first 90 days) | $5,000 | $15,000 | Ongoing |
| Total to start | $14,756 | $52,641 |
Insurance: The Biggest Difference
This is where the two paths diverge most dramatically.
Company Driver
- Company pays all commercial insurance
- Company handles FMCSA filings
- Workers comp covers you if hurt
- Company pays liability if you cause an accident
- Your cost: $0
Owner-Operator
- Auto liability: $8,000-$15,000/yr
- Physical damage: $2,000-$5,000/yr
- Cargo insurance: $400-$2,500/yr
- General liability: $500-$1,200/yr
- Occupational accident: $200-$400/mo
- Bobtail/NTL (if leased): $300-$800/yr
- Total: $12,000-$25,000/yr
And if you're a new authority (under 2 years), expect the high end of those ranges. Insurance carriers see new authorities as high-risk — because statistically, they are.
The Third Option: Leasing On
There's a middle path many truckers overlook: leasing your truck to an existing carrier.
How It Works
You own the truck but operate under the carrier's authority, insurance, and MC number. They handle compliance and often dispatch. You get a percentage of the freight rate (typically 70-85%).
Pros
- No need for your own authority ($0 in FMCSA setup)
- Carrier provides insurance (deducted from settlements)
- Simpler compliance (they handle most of it)
- Immediate access to freight
- Lower startup costs
Cons
- Keep only 70-85% of the load
- Carrier controls which loads you can run
- Insurance deductions may be high (sometimes $1,000+/week)
- Building their reputation, not yours
- Some lease-purchase programs are predatory
Watch Out For
- Lease-purchase traps: Inflated truck prices, balloon payments, forced dispatch, walk-away penalties
- Hidden deductions: Escrow, cargo insurance, fuel surcharge clawbacks, admin fees
- "Independent contractor" in name only: If they control your schedule, routes, and loads — you're an employee being misclassified
How to Decide: 7 Questions
Forget the hype. Answer these honestly:
Do you have $20K-$50K in savings?
Not equity in your house. Not "I can borrow it." Cash you can afford to lose if things go wrong in year one. If no — stay company until you do.
Can you handle 6 months without consistent income?
The first 90 days are brutal. Slow freight weeks happen. Breakdowns happen. If missing two paychecks would sink your family — the timing isn't right yet.
Do you actually like the business side?
Bookkeeping, negotiating rates, managing compliance, filing IFTA, tracking expenses. If you just want to drive — company driving is the better fit.
Do you have 2+ years of clean CDL experience?
Insurance for drivers with less than 2 years experience is 40-60% more expensive. That alone can be the difference between profit and loss in year one.
Is your credit score above 600?
Truck financing, insurance payment plans, and even some freight brokers check credit. Below 600, you'll pay more for everything — or get denied.
Do you have a support system?
Spouse/partner who understands the risk? Mechanic you trust? Accountant who knows trucking? Owner-operators who succeed rarely do it completely alone.
Have you run someone else's truck first?
The smartest path: drive company for 2-3 years, learn the industry, save money, then lease on for 1-2 years, learn the business side, then get your own authority. The truckers who skip steps are the ones we see closing their authority after 18 months.
Quick Score
You're in a strong position to go independent. Start planning your transition.
You're close but have gaps to fill. Consider leasing on while you shore up the weak areas.
Stay company for now. There's no shame in it — and rushing into ownership unprepared is the #1 reason new authorities fail.
Mistakes We See Constantly
Buying too much truck
A $120K truck with a $2,800/month payment needs to gross $15K+/month just to cover the truck. A reliable $40K-$60K truck lets you profit on lower revenue. Your ego doesn't need a brand-new Peterbilt — your bank account needs cash flow.
Not understanding insurance costs
New authority insurance is expensive — often $18K-$25K for the first year. If your business plan assumed $8K, your entire profit projection is wrong. Get an insurance quote before buying the truck.
No operating cash reserves
Spent everything on the truck down payment with $500 left. First month: fuel is $4K, truck payment is $2K, insurance is $1.5K. First broker payment arrives in 45 days. Math doesn't work.
Skipping the lease-on phase
Going straight from company driver to own authority means learning the business and the driving simultaneously — while hemorrhaging cash. The ones who lease on first have 2x the survival rate.
Comparing gross to salary
"I'll make $200K as an owner-op vs $65K company!" No. After expenses, you might net $45K — with no benefits, no PTO, and 70-hour weeks. Always compare apples to apples.
Ignoring health insurance
One ER visit without health insurance can cost $20K-$100K+. One surgery can bankrupt you. This is the hidden cost that destroys owner-operators who "feel healthy" and skip coverage.
The Ideal Timeline
If we were advising someone who came to us wanting to become an owner-operator, here's what we'd suggest:
Drive Company
Get your CDL, build experience, learn the industry, develop relationships. Save aggressively — target $30K-$50K in cash. Get your MVR spotless. Pay off personal debt.
Lease On
Buy a truck, lease to a reputable carrier. Learn the business side: expenses, taxes, maintenance, fuel optimization. Build your safety record under their authority. Keep saving.
Get Your Own Authority
Now you have: 5+ years clean CDL experience (cheap insurance), $30K+ in savings, business knowledge from leasing, industry relationships, and a truck that's partly or fully paid off. Your odds of success just tripled.
Frequently Asked Questions
Can I be an owner-operator without my own authority?
Yes — that's what leasing on is. You own the truck but operate under someone else's MC number and authority. You don't need your own USDOT, insurance filing, or compliance program. Many successful owner-operators run this way permanently.
How much do owner-operators really make?
Gross revenue of $150K-$300K is typical. But after all expenses (fuel, insurance, truck payment, maintenance, permits, taxes, health insurance), net take-home is usually $40K-$100K. The median is probably around $55K-$65K — similar to an experienced company driver when you factor in benefits.
Is it better to buy a new or used truck?
For most new owner-operators: a well-maintained used truck (3-5 years old, under 500K miles) is the smarter play. Lower payments, lower insurance, and if the business doesn't work out, you're not underwater on a $150K loan. Buy new when your business can comfortably afford it.
What's the failure rate for new trucking authorities?
Industry estimates suggest 80-90% of new trucking authorities fail within the first two years. The main killers: undercapitalization, unexpected insurance costs, mechanical breakdowns on older trucks, and simply not knowing how to run a business. The ones who survive year two usually make it long-term.
Should I lease-purchase through a carrier?
Be very careful. Some lease-purchase programs are legitimate paths to ownership. Many are designed so drivers never actually own the truck — they're essentially renting at inflated prices with strict terms that make it easy to lose everything. Read every word of the contract. Have a lawyer look at it. If the truck price is significantly above market value, walk away.
Making the Jump?
If you're ready to get your own authority, or you're planning your path and want to know what insurance will cost, we'll give you straight numbers. No pressure, no upsell — just the reality of what your operation will cost to insure.