Power Only Insurance Requirements
Running power only means hauling trailers you do not own — which creates unique insurance requirements. You need all the standard carrier coverages plus non-owned trailer insurance to protect yourself from liability for damage to someone else's trailer. This guide covers every policy you need, what it costs, and how to avoid costly coverage gaps.
$750K-$1M
Liability Required
$100K
Cargo Minimum
$50-$150
Non-Owned Trailer/Mo
Critical
Don't Skip It
O Trucking Editorial Team
Trucking Industry Experts
Fact-Checked by O Trucking Dispatch Team
5+ years advising carriers on insurance requirements, verifying coverage before booking loads, and managing broker insurance compliance
Sources:
This article was written by the O Trucking editorial team with 9+ years of combined trucking industry experience. Learn more about us.
O TruckingPower Only Insurance Requirements: What Coverage Do You Need? (2026)
Power Only Insurance Overview
Power-only carriers need the same baseline insurance that every motor carrier needs (liability and cargo), plus one additional policy that is specific to hauling equipment you do not own: non-owned trailer coverage. Some brokers also require trailer interchange insurance, which is a related but slightly different policy.
Here is the complete coverage stack for a power-only carrier:
| Coverage Type | Required? | Typical Limits | Monthly Cost |
|---|---|---|---|
| Primary Liability | Yes (FMCSA) | $750K-$1M | $600-$1,200 |
| Cargo Insurance | Yes (Brokers) | $100K | $40-$100 |
| Non-Owned Trailer | Highly Rec'd | $30K-$100K | $50-$150 |
| Physical Damage (Tractor) | If Financed | ACV of truck | $100-$300 |
| Bobtail / NTL | Recommended | $750K-$1M | $30-$60 |
Primary Liability Insurance
Primary liability is required by FMCSA for all motor carriers operating interstate. It covers bodily injury and property damage to others if you cause an accident. The FMCSA minimum is $750,000, but most brokers require $1,000,000 before they will book you.
Primary liability is the same whether you run power only or standard trucking. The trailer type or ownership does not change this requirement. Expect to pay $600-$1,200 per month depending on your driving record, experience, and location.
Cargo Insurance
Cargo insurance covers damage to the freight you are hauling. Even though you do not own the trailer, you are responsible for the cargo while it is in your care, custody, and control. If the freight is damaged during transit — whether from an accident, theft, or negligence — your cargo policy pays the claim.
Most brokers require $100,000 in cargo coverage as a minimum. Some high-value freight (electronics, pharmaceuticals) may require higher limits. Cargo insurance typically costs $40-$100 per month and is the same cost whether you run power only or standard trucking.
Non-Owned Trailer Coverage (The Key Policy)
This is the policy that makes power-only insurance unique. Non-owned trailer coverage (also called trailer interchange insurance or borrowed trailer coverage) protects you from financial liability if a trailer you are hauling — but do not own — is damaged while in your possession.
Without this coverage, if you back into a pole and dent a shipper's trailer, or if the trailer catches fire, or if it is damaged in an accident, you are personally liable for the repair or replacement cost. Trailers cost $25,000-$60,000 new. Even a moderate repair can run $5,000-$15,000.
Typical limits — $30,000 to $100,000 per trailer. Most brokers require at least $30,000; some require $50,000 or $100,000 for newer or specialized trailers.
Cost — $50-$150 per month depending on your coverage limits, deductible, driving record, and insurance provider. Some policies charge per trailer; others are blanket coverage for any non-owned trailer you haul.
Deductible — Typically $1,000-$2,500. Lower deductibles mean higher premiums. Choose a deductible you can afford to pay out of pocket if a claim occurs.
What it covers — Physical damage to the non-owned trailer from collision, fire, theft, vandalism, and weather events while in your custody. Does NOT cover mechanical breakdown, wear and tear, or pre-existing damage.
Non-Owned Trailer Insurance Is NOT Optional
Physical Damage Insurance (Your Tractor)
Physical damage coverage protects your own tractor from collision, comprehensive, fire, theft, and vandalism. This is the same policy whether you run power only or standard trucking — it covers your truck, not the trailer. If you have a loan or lease on your tractor, the lender will require physical damage coverage. If you own the truck outright, it is optional but strongly recommended for any truck worth over $20,000. Cost: $100-$300/month depending on truck value and your record. See our owner-operator insurance guide for details.
Total Insurance Costs for Power Only
Monthly Insurance Budget: Power Only Carrier
Power Only vs Standard Trucking Insurance Costs
The insurance cost difference between power only and standard trucking is modest but real:
Power only saves on trailer physical damage — Standard carriers need physical damage insurance on their trailer ($100-$200/mo). Power-only carriers do not, since they do not own a trailer.
Power only adds non-owned trailer coverage — This costs $50-$150/mo — generally less than trailer physical damage insurance on your own trailer.
Net difference — Power-only carriers typically save $50-$100/month on total insurance costs compared to standard trucking carriers. Not a huge difference, but it adds up over a year.
Ask Your Insurance Provider About Power-Only-Specific Policies
How Our Team Verifies Insurance Compliance
At O Trucking LLC, we verify insurance on every carrier we dispatch:
Insurance verification before booking
Before we dispatch any power-only carrier, we verify that their Certificate of Insurance (COI) includes primary liability, cargo, and non-owned trailer coverage at the limits required by the broker. If your coverage has gaps, we identify them before they cause problems on a load.
Broker insurance requirement matching
Different brokers have different insurance requirements. Some require $50,000 non-owned trailer; others require $100,000. We match you with loads where your coverage meets the broker's requirements, avoiding booking rejections and compliance issues.
Renewal tracking
Insurance lapses are a common problem that can shut down your authority. We track your policy renewal dates and remind you before they expire, so you never have a gap in coverage that could cost you loads or trigger FMCSA enforcement.
Need a Dispatch Team That Understands Power Only Insurance?
Our dispatchers verify your insurance compliance, match you with loads that fit your coverage, and make sure you never book a load where your insurance does not meet the broker's requirements.