Bobtail insurance costs $25–$75 per month for a typical owner-operator under permanent lease, or about $300–$900 per year. It covers your tractor when you are driving without a trailer attached and without being dispatched under the motor carrier's authority — for example, after dropping a load and heading home. The motor carrier's primary commercial auto policy does not cover you in those moments. Bobtail is frequently bundled with non-trucking liability (NTL), which extends similar protection to personal-use trips even with a trailer attached. Carriers that specialize: Progressive Commercial, Great West Casualty, OOIDA Truck Insurance, Northland, Sentry Select, and ARI.
Bobtail insurance fills a narrow but critical gap: it protects an owner-operator's tractor during the hours each week the rig is being driven but is not in dispatch for the motor carrier they lease to. The carrier's primary commercial auto policy covers the truck only while it is actively pulling a load or moving under dispatched authority. The minute you drop a trailer and drive home — or to the maintenance shop, the fuel island, or a personal errand — the carrier's policy excludes you. Bobtail insurance is the standalone policy that fills that exclusion. Source: Progressive Commercial 2026, Great West Casualty 2026, OOIDA Truck Insurance, IRMI Bobtail Liability reference, FMCSA 49 CFR 387 filings.
bobtail premium
lease to a motor carrier
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- Why owner-operators need bobtail insurance
- Bobtail vs non-trucking liability (NTL) — the two are often confused
- How much does bobtail insurance cost?
- What bobtail coverage includes (and excludes)
- Bobtail vs primary commercial auto vs occupational accident
- Federal compliance: MCS-90, DOT, and state requirements
- Carriers that specialize in bobtail insurance
- How to get bobtail insurance
Why owner-operators need bobtail insurance
About 92% of US owner-operators lease their truck to a motor carrier rather than running independently under their own authority. Under that lease, the carrier provides a primary commercial auto liability policy — but that policy is written to cover the tractor only while it is in-dispatch: pulling the carrier's load or moving under the carrier's operating authority. The instant the trailer is dropped and the truck is being driven for any other purpose, the carrier's policy excludes the trip entirely.
- Dropping a trailer and driving home — bobtail trips (no trailer, no dispatch). Carrier policy excluded.
- Driving to the maintenance shop — bobtail or with-trailer-but-not-dispatched. Carrier policy excluded.
- Personal errands in the tractor — picking up groceries, running to a doctor's appointment. Carrier policy excluded.
- Repositioning between loads — empty trailer, not yet under dispatch for the next load. Often excluded depending on lease terms.
- Hostling or yard moves at a private facility — depends on lease. Bobtail typically covers; primary auto often does not.
- Driving the tractor to a vacation or relocation — never covered by primary auto. Bobtail covers liability only, not collision.
- A catastrophic accident while bobtailing — bodily injury and property-damage lawsuits routinely settle in the $250K–$2M range. Without bobtail, those are personal-asset exposure.
- State minimum financial responsibility — most states require the registered owner of a tractor to carry liability coverage continuously. Bobtail satisfies that during non-dispatch hours.
Bobtail vs non-trucking liability (NTL) — the two are often confused
These terms get used interchangeably in conversation, but they describe two slightly different exposures. Most modern policies bundle them. Knowing the distinction matters when you read the declarations page.
Bobtail Liability (Deadhead)
Covers the tractor while it is being driven without a trailer attached. Term originated from the slang for a tractor without a trailer ("bobtail"). Coverage attaches whenever there's no trailer behind the cab, regardless of whether you're dispatched.
Non-Trucking Liability (NTL)
Covers the tractor — with or without a trailer — when it is being driven for non-business use and is not in dispatch for the motor carrier. The trip purpose, not the presence of a trailer, is what triggers coverage. Often called "permissive use" coverage.
Combined Bobtail + NTL (most common)
Most specialty trucking carriers issue a single policy that bundles both. Declarations page will say "Bobtail / Non-Trucking Liability" or "Deadhead and NTL." This is the practical default for leased owner-operators and what most lease agreements require.
How much does bobtail insurance cost?
| Operator profile | Annual premium range |
|---|---|
| Owner-operator, permanent lease, clean MVR, 5+ yr CDL | $300–$600 |
| Owner-operator, permanent lease, 1 minor MVR incident | $500–$900 |
| Owner-operator, trip lease (multiple carriers) | $800–$1,500 |
| Owner-operator, <3 years CDL experience | $900–$1,800 |
| Owner-operator with major MVR incident (DUI, at-fault major) | $1,800–$4,500 |
| Hazmat-endorsed bobtail (+ NTL combined) | +20-40% vs standard |
| Higher liability limit ($2M CSL) | +15-30% vs $1M |
| High-cost garaging state (CA, NY, NJ, FL metro) | +10-30% vs national average |
What drives bobtail premium
- Years of CDL experience — 5+ years gets the best tiering; less than 3 years sees significant surcharge.
- MVR (motor vehicle record) — moving violations within 3 years and at-fault accidents within 5 years are heavily rated.
- Garaging state — high-litigation states (CA, NY, NJ, FL) carry premium loads; lower-litigation rural states are cheaper.
- Lease arrangement — permanent lease to a single motor carrier prices lower than trip-leasing to multiple carriers because exposure is more predictable.
- Liability limit selected — $1M CSL is standard; $2M+ available; lower limits ($500K) sometimes offered but rarely accepted by motor carriers.
- Truck value / age — bobtail is liability-only, so truck value drives less of the premium than for primary auto. Comprehensive/collision are separately scheduled.
- Bundled NTL — adding NTL to bobtail typically adds 15-25% but is recommended for most leased owner-operators.
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What bobtail coverage includes (and excludes)
A bobtail policy is fundamentally a liability-only policy — it pays third parties for bodily injury or property damage you cause while the truck is being driven outside of dispatch. It does not pay for damage to your own tractor; that's a separate physical-damage policy (often called "occupational accident" or simply "tractor comprehensive/collision").
- Covered: third-party bodily injury (medical bills, lost wages, pain and suffering settlements) from a bobtail-trip accident.
- Covered: third-party property damage (other vehicle, guardrail, building, fence) caused while bobtailing.
- Covered: legal defense costs in lawsuits arising from a covered bobtail trip.
- Covered: medical payments for the operator and passengers — often a small sub-limit ($1K-$5K).
- Not covered: damage to your tractor — needs separate physical damage / comprehensive coverage.
- Not covered: trips made while in dispatch for the motor carrier — those go through the carrier's primary policy, not bobtail.
- Not covered: cargo of any kind — bobtail is by definition without trailer; cargo coverage is a separate policy (motor truck cargo or trip cargo).
- Not covered: workers compensation — owner-operators in most states are not employees and don't qualify; occupational accident is the alternative product.
Bobtail vs primary commercial auto vs occupational accident
Owner-operators commonly carry three distinct policies that get confused with each other. The decision rule is which trip type is happening at the moment of the incident.
| Policy | What it covers | Who pays for it |
|---|---|---|
| Primary commercial auto | Liability while the tractor is in dispatch and pulling the carrier's load | Motor carrier (under the lease) |
| Bobtail / NTL | Liability when the tractor is being driven outside of dispatch (with or without trailer, business or personal use) | Owner-operator (you) |
| Occupational accident | Medical + disability + accidental death for the driver themselves (substitutes for workers comp where independent-contractor status precludes WC eligibility) | Owner-operator (you) |
| Physical damage | Damage to the tractor itself — comprehensive + collision, regardless of trip type | Owner-operator (you) |
| Cargo (motor truck cargo) | Damage to the freight you're hauling under dispatch | Motor carrier or owner-operator (depends on lease) |
A driver who carries only primary commercial auto + occupational accident — but no bobtail — has a coverage gap any time the tractor is moving outside dispatch. That's the gap bobtail fills.
Federal compliance: MCS-90, DOT, and state requirements
Bobtail is a state-regulated product but interacts with several federal Motor Carrier Safety Administration (FMCSA) requirements. The most important is the MCS-90 endorsement.
| Filing | What it is | When required |
|---|---|---|
| MCS-90 Endorsement | Federal financial responsibility endorsement attached to the primary commercial auto policy (typically the motor carrier's). Acts as a public guarantee. | Any interstate for-hire trucking under FMCSA. Bobtail does NOT itself carry MCS-90 — it sits beneath the carrier's MCS-90. |
| DOT Number | Federal registration number issued by FMCSA | Owner-operators leased to a motor carrier typically use the carrier's DOT number; independent operators register their own. |
| MC Authority | Operating authority from FMCSA — separate from DOT number | Independent operators carrying their own authority. Leased owner-operators run under the carrier's MC. |
| State minimum financial responsibility | State-issued minimum liability requirement for any registered tractor | Every state. Bobtail satisfies this during non-dispatch hours; carrier's primary policy satisfies it during dispatch. |
| IFTA / IRP | Apportioned plates + fuel-tax filings for multi-state operation | Multi-state operators >26,001 lbs GVWR. Not directly related to bobtail but commonly bundled paperwork. |
Common bobtail claims and risk scenarios
Carriers that specialize in bobtail insurance
| Carrier | Specialty | Best for |
|---|---|---|
| Progressive Commercial | Bobtail + NTL bundled, broad eligibility | Solo owner-operators, leased; price-driven shoppers |
| Great West Casualty | Specialty trucking, owner-operator focus | Established owner-operators with clean MVR |
| OOIDA Truck Insurance | Owner-Operator Independent Drivers Association member program | OOIDA members; competitive pricing |
| Northland Insurance | Specialty trucking through Travelers | Owner-operators wanting carrier strength |
| Sentry Select / Dairyland | Owner-operator and small-fleet commercial | Mid-tier risk owner-operators |
| ARI / Atlantic Casualty / Lancer | Hard-to-place specialty markets | Operators with prior losses or MVR issues |
| Carrier's own program (lease) | Some motor carriers offer in-house bobtail via payroll deduction | Convenience, but rarely lowest cost |
How to get bobtail insurance
- Confirm your lease arrangement — permanent lease to a single motor carrier vs trip-leasing to multiple. Have a copy of your IC operating agreement or lease addendum ready.
- Gather documentation — CDL, MVR pull (most carriers will pull their own), DOT number, MC number (carrier's or yours), truck VIN + year + make + model, lien-holder information if financed.
- Decide liability limit — $1M CSL is standard; many motor carriers require $1M minimum in the lease; some require $2M.
- Decide bundle — bobtail only, or bobtail + NTL combined. NTL is recommended for almost every leased operator.
- Compare 3+ specialty carriers — Progressive Commercial, Great West, OOIDA, and Northland typically beat generalist commercial auto carriers on owner-operator policies by 15-30%.
- Submit lease verification to motor carrier — most carriers require a certificate of insurance naming them and showing bobtail + NTL coverage before they'll add you to their authority.
- Bind and bridge — clean MVR + permanent lease typically binds in 24-72 hours. Hard-to-place (loss history, MVR issues) can take 1-2 weeks through specialty markets.
State-by-state notes for owner-operators
| State | Notable bobtail / owner-operator considerations |
|---|---|
| California | $1M CSL effectively required by most major carriers. AB 5 worker-classification rules complicate IC status; lease arrangements scrutinized. |
| Texas | Owner-operator friendly. $750K minimum financial responsibility intrastate; $1M CSL recommended for interstate. |
| Florida | $300K minimum but motor carriers typically require $1M. High garaging-rate adjustments in Miami-Dade and Broward metro. |
| Illinois | $1M CSL common; Chicago metro garaging adds premium. PUC registration may apply for intrastate-only operators. |
| Georgia | $750K minimum; $1M-$2M CSL typical for interstate. Atlanta metro garaging premium. |
| Pennsylvania | $750K minimum interstate; PUC tariff filings if operating intrastate for hire. Trucking-corridor garaging premium near I-78/I-80. |
| Ohio | Owner-operator friendly. $750K minimum interstate; $1M typical. |
| New York | $1M+ CSL effectively required. NYC garaging significantly increases premium. State DMV strict on continuous-coverage. |
| New Jersey | High garaging-rate state. $1M CSL standard. |
| Arizona | $750K minimum interstate. ADOT compliance straightforward. |
Frequently Asked Questions
Do I need bobtail insurance if my motor carrier provides primary commercial auto?
Yes — the carrier's primary policy only covers the tractor while it is in dispatch for them. The moment you drop a trailer or drive for any non-dispatch purpose, that policy excludes the trip. Bobtail (and bundled NTL) fills that gap. Most modern lease agreements actually require you to carry bobtail.
What's the difference between bobtail and non-trucking liability (NTL)?
Bobtail covers the tractor when driven without a trailer; NTL covers the tractor for non-business trips regardless of whether a trailer is attached. They overlap heavily and most specialty carriers bundle them as a single "bobtail / NTL" or "deadhead" policy. Check your declarations page — it should say both terms.
How much does bobtail insurance cost per month?
$25–$75 per month for a typical owner-operator under permanent lease with a clean MVR — about $300–$900 per year. Trip-lease operators and drivers with MVR issues pay more. The premium is small relative to primary commercial auto because coverage only attaches when the truck is NOT in dispatch.
Does bobtail cover damage to my truck?
No. Bobtail is liability-only — it pays third parties for bodily injury and property damage you cause. Damage to your tractor itself needs a separate physical damage policy (often called comprehensive/collision or scheduled physical damage). Many specialty carriers will sell both as a combined package.
Do I need bobtail if I run under my own authority (not leased)?
Not in the same form. Independent owner-operators carrying their own authority typically have one primary commercial auto policy that covers all driving, in-dispatch or not. The bobtail / NTL distinction matters specifically when you are leased to a motor carrier and operating under their primary policy during dispatched runs.
Does bobtail insurance include cargo coverage?
No. Bobtail is, by definition, coverage for trips with no trailer (or for NTL trips that are non-business). Cargo coverage is a separate policy — motor truck cargo for full-time hauling, or trip cargo for one-load arrangements. Carriers like Progressive Commercial and Great West sell cargo alongside bobtail in bundled packages.
Can I get bobtail insurance with a DUI on my record?
Yes, but expect significantly higher premiums and a smaller pool of willing carriers. Specialty markets like ARI, Lancer, and Atlantic Casualty write "hard-to-place" risks. A DUI within 3-5 years generally doubles or triples the premium and may push you out of standard carriers entirely.
Does bobtail satisfy MCS-90 federal financial responsibility?
No. MCS-90 is a federal endorsement attached to the motor carrier's primary commercial auto policy (or to an independent operator's primary). Bobtail is a supplemental policy that fills the non-dispatch gap; it does not itself carry MCS-90. When you're in dispatch, the carrier's MCS-90-endorsed primary policy applies; when you're out of dispatch, bobtail / NTL applies.
How long does it take to bind bobtail insurance?
For an owner-operator with a clean MVR, permanent lease, and clean lease verification: 24-72 hours typical. Hard-to-place risks (DUI, prior losses, <3 years CDL) can take 1-2 weeks through specialty markets. Some carriers (Progressive Commercial) issue same-day binders online if you qualify for their standard tier.
What happens if I bobtail without insurance and get in an accident?
The motor carrier's primary policy will deny the claim because the trip wasn't in dispatch. State minimum financial responsibility requirements typically still apply — if you're caught without coverage, you face license suspension, registration suspension, and personal financial liability for the entire claim. A serious bobtail accident can easily settle in the $250K–$2M range, which is personal-asset exposure without coverage.
Quick glossary — bobtail & owner-operator terms
- Bobtail
- A tractor (the truck cab) being driven without a trailer attached. Bobtail insurance covers third-party liability during these trips.
- Deadhead
- Driving with an empty trailer attached. Often used interchangeably with bobtail in casual speech, but technically distinct (deadhead = empty trailer; bobtail = no trailer).
- Non-Trucking Liability (NTL)
- Coverage for the tractor when driven for non-business purposes outside of dispatch, regardless of whether a trailer is attached. Often bundled with bobtail.
- In Dispatch
- The legal status of a tractor that is actively engaged in transporting a load under the motor carrier's authority. Primary commercial auto covers this; bobtail and NTL do not.
- Permanent Lease
- An owner-operator agreement assigning the tractor exclusively to one motor carrier on an ongoing basis. Most common arrangement (~92% of leased owner-operators).
- Trip Lease
- An owner-operator agreement to haul one specific load for a motor carrier, then release. Multiple trip leases to different carriers complicate bobtail pricing.
- IC Operating Agreement
- The independent-contractor lease agreement between owner-operator and motor carrier. Defines who insures what and which trips are "in dispatch."
- MCS-90 Endorsement
- Federal financial responsibility endorsement on the motor carrier's primary commercial auto policy. Bobtail does not carry MCS-90 itself — it sits beneath the carrier's MCS-90.
- Occupational Accident
- A workers-comp-substitute product for owner-operators who don't qualify for workers comp because they're independent contractors. Pays driver medical + disability.
- Permissive Use
- Alternate name for NTL coverage — the carrier's policy "permits" the operator to use the tractor for non-business trips and provides liability protection for them.