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What own authority vs leased-on means in trucking

Own authority means your business is the motor carrier: it holds its own carrier number and, in California, its own motor carrier permit, and its own insurance is filed. Leased-on means an owner-operator runs the truck under another motor carrier's authority and permit.

Vehicle Code section 34620(a) says a motor carrier of property may not operate a commercial motor vehicle on a public highway in California without registering its carrier identification number with the DMV and holding a valid motor carrier permit. Section 34620(b) also bars anyone from hiring a motor carrier of property that lacks a valid permit. Section 34601 defines who counts as a motor carrier of property, and section 34631.5 sets the liability filing behind the permit.

A leased-on driver usually rides on the carrier's liability while dispatched and buys non-trucking liability, physical damage, and sometimes cargo on their own. The comparison is in leased-on vs own authority, and the start-up checklist is new authority trucking insurance.

Questions

What is own authority?

Your business is the motor carrier, with its own carrier number, its own California motor carrier permit, and its own insurance filing.

What does leased-on mean?

An owner-operator runs under another carrier's authority and permit, usually covered by that carrier's liability while under dispatch.

Does California require a permit?

Yes. Vehicle Code section 34620 requires a motor carrier of property to hold a valid DMV motor carrier permit to operate a commercial motor vehicle on public highways.

Sources

Related: Glossary · Stockton office · Trucking, tow, and delivery · Esta página en español.

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