If you’re sitting behind the wheel on your 10 hour break, weighing whether to keep running under your own MC or lease onto someone else’s authority, you’re not alone. 2025 has put a lot of pressure on small carriers and owner-operators to reevaluate everything. Margins are tighter. Freight is slimmer. Insurance rates are through the roof. And let’s not even talk about compliance.
So what do you do? Do you go all-in on building your business with your own authority—or do you cut bait, lower your overhead, and lease onto a more stable platform?
Let’s break this down like we’re at the diner counter—not like we’re reading from a textbook.
Running under your own authority means you own the business end-to-end. You’re responsible for:
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Booking your own freight
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Managing your own compliance (DOT, FMCSA, drug testing, recordkeeping, etc.)
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Paying your own insurance (cargo, liability, physical damage, etc.)
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Handling all collections, billing, and disputes
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Dealing with audits, inspections, renewals, and paperwork
Upside? Full control. You book the freight you want, run the lanes you prefer, and keep 100% of the rate. You can build direct customer relationships and set your own business direction.
Downside? Everything that goes wrong is on you. You’re now a compliance manager, safety director, accountant, and negotiator on top of being a driver.
Leasing on means you operate under someone else’s MC number. You’re technically contracted to their company, even though you might run your own truck, pick some of your loads, and work independently.
They typically handle:
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Insurance
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Compliance and safety management
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Factoring/invoicing/collections
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Fuel cards and discounts
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Possibly freight or dedicated lanes
In exchange, you pay a cut—usually anywhere from 15% to 30% of the load rate.
Upside? Lower administrative burden. You can focus on driving and making money without managing the headaches behind the scenes.
Downside? Less control. They might push loads on you, skim the better-paying freight, or limit your access to certain brokers or shippers. Also, your business credit and history don’t grow as fast because technically, you’re running under their flag.
If you’re struggling to find consistent freight, having your own authority might feel like having a boat with a hole in it. Load boards are flooded. Margins are tight. Even established carriers are seeing more unpaid invoices and harder rate negotiations.
When leased on, you might have access to better-paying, more consistent freight through that company’s network. But at what cost? That cut might be the difference between surviving and stalling out. But depending on the company, you might not….
Keeping your own authority means you’re footing the insurance bill. And if you’re a new entrant or had a recent claim? Good luck. Premiums in 2025 are climbing—some carriers are paying over $25,000 annually per truck.
When you lease on, the parent company absorbs those costs. You might still pay a share, but it’s rarely the full freight. This is a big factor for those running lean.
The FMCSA crackdown on fraud, ELD violations, and safety scores means your authority better be squeaky clean. If your inspections, time in authority, or insurance lapses look bad, you won’t get freight. Period.
Leasing on gives you a shield—you’re covered under someone else’s MC scorecard. But that shield can also limit your access to premium customers or growth opportunities.
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You’ve built broker and shipper relationships that give you regular freight
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You want to eventually add trucks and grow into a fleet
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You have the back-office support or software to handle compliance, dispatch, and safety
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Your CSA and inspection scores are solid
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You’re financially in the green and you can see improvements in profits
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You’re spending more time stressing over paperwork than hauling
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You can’t get insurance quotes you can afford
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Your MC has aged out of new entrant but still hasn’t built a good safety score
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Your cash flow is suffering due to unpaid invoices or bad freight
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You’re burned out and need breathing room
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You’re trying to lease on to dodge compliance entirely—bad idea
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You think leasing on guarantees better freight—it doesn’t
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You think your authority is bulletproof when your CSA score is in the red—it isn’t
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You’re ignoring insurance renewal costs until the week they’re due—you’re setting yourself up for disaster
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Am I better at driving—or at running a business?
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Do I want to grow into a fleet—or just run one truck and stay profitable?
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Am I protecting my bottom line—or just trying to protect my pride?
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Do I know my real cost per mile under each scenario?
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What happens if rates drop another 10%? Can I still survive under my current setup?
There’s a toxic pride in trucking that says, “If you shut your authority down, you failed.”
That’s nonsense.
Smart business owners pivot when the math changes. Shutting down your authority in 2025 might be the smartest move you can make if it means surviving the storm and coming back stronger. On the flip side, going back to your own authority after rebuilding your reserves while leased on? That’s a smart play, too.
It’s not about ego. It’s about execution.
Q: Can I pause my authority instead of shutting it down?
A: In a sense, you can go inactive with FMCSA and keep it in good standing, but you’ll still need to maintain insurance and UCR registration if you plan to resume within a year.
Q: Do brokers stop working with you if you leave and come back later?
A: Not if you left on good terms. Keep your relationships alive. Let them know you’re pivoting to weather the storm—not closing up shop permanently.
Q: Is leasing on always cheaper?
A: Not always. Some leased-on setups take 30% of the gross. Depending on your revenue and costs, that can actually be more expensive than running your own authority. Run the numbers.
Q: Will shutting down my authority hurt my business credit?
A: If done properly, no. But missed insurance payments or unpaid renewals that get sent to collections? That’s a different story.
Q: What about leasing onto a carrier with direct contracts—should I ask for proof?
A: Absolutely. Don’t take anyone’s word. Ask for rate confirmations or copies of the agreement. If they hide it, move on.
The decision to lease on or keep your authority in 2025 isn’t black and white—it’s business. Run the numbers. Drop the ego. Pick the setup that gives you the best chance to stay profitable, stay legal, and stay sane.
If you’re thriving under your own MC, protect it like gold. If you’re barely hanging on and need structure, find a solid carrier to lease onto. There’s no shame in stepping back to move forward.
The only wrong move is ignoring the signs and doing nothing.
You’ve got trucks to run and bills to pay. Choose the setup that helps you win—long term. And if that means taking a step back today to leap ahead tomorrow? So be it.
That’s not quitting.
That’s surviving smart.
The post Should You Keep Your Authority or Lease On – The 2025 Breakdown That Could Save (or Sink) Your Trucking Business appeared first on FreightWaves.
