Non trucking liability insurance: what it covers and who needs it
Non trucking liability insurance covers a leased owner operator on personal trips in the truck, not trips for the carrier. It pays other people, not you.
I read the coverage terms and the federal lease rule at the source. Here is what the policy does, where it stops and what to check in your lease.
Key takeaways
- Personal use is what NTL covers, in a leased truck off the clock. (Progressive Commercial, 2026)
- 3 things are outside the policy: dispatch crashes, your cargo and your own truck. (Progressive Commercial, 2026)
- $360 to $720 a year is the FreightWaves range for bobtail insurance. It ranks NTL lower than that. (FreightWaves Checkpoint, 2026)
- 49 CFR 376.12 makes the lease say who buys bobtail type coverage and what you are charged. (eCFR, 2026)
- $750,000 is the least primary liability your own authority needs for general freight. NTL is not sold for that. (FMCSA, 2026)
- Physical damage is a separate policy. NTL never pays to fix your truck. (Progressive Commercial, 2026)
- $1,000,000 is the unladen liability limit Landstar requires of every leased owner operator. (Gallagher Transportation Services, 2026)
Leased on, you run under the carrier's insurance while you are under dispatch. The question is what covers you the rest of the time.
That gap is where non trucking liability sits. Drivers call it NTL, and many call it bobtail insurance, which is a different policy.
I read the coverage terms and the federal lease rule on October 10, 2026. This guide shows you what the policy does and what to check before you pay for it.
What is non trucking liability insurance?
Non trucking liability insurance, or NTL, is liability coverage for an owner operator who is leased to a motor carrier. It applies when you use the truck for yourself and not for the carrier.
Progressive Commercial gives 2 examples of that kind of trip: going to the movies or running to the grocery store.
If you cause a crash on a trip like that, NTL can pay for 3 things.
- Bodily injury. Medical bills for someone you hurt.
- Property damage. Repair or replacement of another person's vehicle or belongings.
- Legal costs. Attorney fees, court costs and other legal expenses after a claim.
It is liability coverage only. It pays other people. It does not pay you.
What does non trucking liability insurance not cover?
It does not cover a crash under dispatch, the cargo you haul or damage to your own truck. Progressive lists all 3 as outside the policy.
| Situation | Covered by NTL | What covers it |
|---|---|---|
| You hurt someone on a personal trip | Yes | NTL |
| You damage someone's car on a personal trip | Yes | NTL |
| A crash under dispatch | No | The carrier's primary liability |
| The cargo you are hauling | No | Cargo insurance |
| Damage to your own truck | No | Physical damage insurance |
| Your own medical bills | No | Separate coverage |
Source: Progressive Commercial, read October 10, 2026.
Progressive also says NTL leaves out uninsured motorist claims, medical payments and personal injury coverage. You buy those apart.
The hard part is the line between personal and business use. FreightWaves Checkpoint warns that insurers define these terms differently. Read how your policy defines business use and under dispatch.
Who needs non trucking liability insurance?
A leased owner operator needs it. Your carrier's primary liability covers you under dispatch, and it does not cover personal use of your truck.
That is why carriers often require it. Progressive says NTL helps you meet the coverage terms of your lease.
You do not buy NTL under your own authority. Progressive says the coverage is not available in 3 cases.
- You need a federal or state filing.
- You are driving a truck for another company at the time.
- You are part of a trailer interchange agreement.
Your own authority needs a federal filing. So you carry primary liability there, at least $750,000 for general freight (FMCSA).
My trucking authority guide covers that filing. The owner operator requirements checklist shows what each path asks of you.
From the cab. I was a leased owner operator at Landstar Ranger for 3 years. The lease is where you find out who buys which policy, so read that page before you sign.
What is the difference between non trucking liability and bobtail insurance?
Bobtail insurance covers you when you drive the tractor with no trailer. Non trucking liability covers you when you use the truck for personal tasks.
| Coverage | When it applies | Who uses the term |
|---|---|---|
| Bobtail | You drive the truck with no trailer behind it | Progressive Commercial |
| Deadhead | You pull an empty trailer | Progressive Commercial |
| Non trucking liability | You use the truck for personal tasks | Progressive Commercial |
Source: Progressive Commercial.
The names get mixed up on the road. A driver says bobtail insurance and means the NTL policy his lease requires.
The label matters less than the wording. FreightWaves notes that some insurers cover bobtail driving any time there is no trailer. Others stop covering it once you are under dispatch.
Ask your agent one question in writing. Am I covered from the receiver to the house, with no trailer and no load assigned?
How much does non trucking liability insurance cost?
No insurer I checked publishes a price. FreightWaves Checkpoint puts bobtail insurance at $360 to $720 a year and ranks non trucking liability lower than bobtail.
Progressive says your rate depends on your business type, your truck, your driving history and your location. You have to ask for a quote.
| Coverage | Per month | Per year | Per mile at 95,000 miles |
|---|---|---|---|
| Bobtail, low end | $30 | $360 | Under half a cent |
| Bobtail, high end | $60 | $720 | Under 1 cent |
| Non trucking liability | No published price | Ranked lower than bobtail | No published price |
Price range from FreightWaves Checkpoint, March 18, 2026. The 95,000 miles is the ATBS average for 2025 (FreightWaves). The per mile math is mine.
For example, $720 a year over 95,000 miles is about 0.76 cents per mile. That is a small line next to fuel.
Put it in context. ATBS puts all insurance for a leased owner operator at $3,000 to $5,000 a year (ATBS, 2024).
You can buy NTL from the carrier or on your own. Progressive says you can often find a better rate when you buy it yourself. That is an insurer talking, so get both prices.
For the whole insurance bill, read semi truck insurance cost.
What does the federal lease rule say about this insurance?
The rule, 49 CFR 376.12, puts the insurance terms in writing. The lease must say who provides coverage such as bobtail insurance, and what the carrier charges you for it.
- The carrier's duty. The lease must state the carrier's legal obligation to keep insurance that protects the public.
- Who buys the rest. The lease must say who provides any other coverage for the leased truck, such as bobtail insurance.
- The charge back. If the carrier charges you for that insurance, the lease must give the amount.
- Your copy. If you buy coverage through the carrier, it must give you a copy of each policy when you ask.
- The certificate. It must also give you a certificate that shows the insurer, the coverage, your cost and your deductible.
So ask for the certificate. It tells you what you are paying and what you are covered for, on one page.
My article on what lease on carriers keep covers the rest of the lease rule.
What does Landstar require for this coverage?
Landstar requires each of its owner operators to carry $1,000,000 in unladen liability, at their own expense (Gallagher).
Unladen liability is Landstar's name for this coverage. Its page says the policy covers you bobtailing, or pulling a trailer with no freight on it.
The line here is freight, not personal use. The page says the policy will not cover you while you haul freight.
| Term | What the page says |
|---|---|
| Who must carry it | Every owner operator under Landstar's lease, at their own expense |
| Limit | $1,000,000 combined single limit for injury and property damage |
| When it applies | Bobtailing, or pulling a trailer that carries no freight |
| When it does not | Any time you are hauling freight |
| How you get it | You are covered and charged when you sign, unless Landstar approves your own policy in writing |
| How you pay | A deduction from your settlement |
| Price | Not published. It depends on the vehicle type |
Source: Gallagher Transportation Services, read October 10, 2026. Gallagher runs the program and Zurich writes the policy.
You can bring your own policy. Landstar's page lists what it must have.
- A limit of at least $1,000,000.
- Landstar named as an additional insured.
- At least 30 days of notice to Landstar before a cancellation.
- Wording that covers both bobtailing and deadheading.
- Coverage in the 48 contiguous states and Canada.
The page gives no price. It says the insurer can change your cost with 30 days of notice.
So get the program's quote and one outside quote. Then compare both with the bobtail range in the cost section above.
From the cab. I leased to Landstar Ranger for 3 years, so this is the carrier I know. These terms come from the program's page today, not from my old paperwork.
What does non trucking liability leave uncovered on your own truck?
Everything that happens to the truck itself. Progressive says the carrier's primary liability does not include physical damage, and NTL does not fill that gap.
Physical damage insurance pays to repair your truck after a collision, a theft or a natural disaster. A lender usually wants it on a financed truck.
Progressive lists 3 coverages a leased owner operator may need on top of the carrier's policy.
- Non trucking liability. For personal use of the truck.
- Physical damage. To repair or replace your truck.
- Trailer interchange. For damage to a trailer you do not own, under an interchange agreement.
None of them pays for your own injuries. FreightWaves points drivers to occupational accident or workers' compensation coverage for that.
What should you check before you buy?
Check the lease first, then the policy wording. Price comes last, because a cheap policy that denies your claim costs the most.
- The lease. See whether it names NTL, bobtail or both, and who buys it.
- The charge back. Find what the carrier takes from your settlement for it.
- Personal use. Read how the policy defines it.
- The trailer. Check that you are covered with a trailer attached, not only without one.
- Under dispatch. Read when the policy says dispatch starts and ends.
- The limit. Match it to the limit your lease requires.
Then add the yearly cost to your fixed costs in the cost per mile calculator.
This is not insurance or legal advice. A licensed agent can read your lease next to the policy.
Frequently asked questions
Is non trucking liability the same as bobtail insurance?
No. Bobtail covers driving the truck with no trailer. Non trucking liability covers personal use of the truck. (Progressive Commercial)
Does non trucking liability cover me under dispatch?
No. Progressive lists accidents under dispatch as not covered. The carrier's primary liability applies there. (Progressive Commercial)
Does non trucking liability cover damage to my truck?
No. It pays for harm to other people. Physical damage insurance covers your truck. (Progressive Commercial)
Do I need non trucking liability with my own authority?
No. Progressive says it is not available when you need a federal or state filing. Your own authority needs primary liability. (Progressive Commercial)
Is non trucking liability required by law?
The federal lease rule does not require it by name. It makes the lease say who provides coverage such as bobtail insurance. Carriers often require NTL. (eCFR)
How much does non trucking liability insurance cost?
Insurers do not publish a price. FreightWaves puts bobtail at $360 to $720 a year and ranks NTL lower. (FreightWaves Checkpoint)
Can my carrier charge me for this insurance?
Yes, if the lease states the amount. You can ask for a copy of the policy and a certificate that shows your cost. (eCFR)
Does Landstar require bobtail insurance?
Yes. Its lease requires unladen liability with a $1,000,000 limit, at your expense. You can use Landstar's program or your own approved policy. (Gallagher Transportation Services)
How this was checked
On October 10, 2026, I read Progressive Commercial's coverage pages and the lease rule at 49 CFR 376.12. The eCFR text was current to October 7, 2026. I also read the FreightWaves Checkpoint guide dated March 18, 2026.
Progressive is an insurer. I used its pages for what the coverage does, not for where to buy.
The Landstar terms come from the unladen liability page that Gallagher runs for Landstar's owner operators. I read it on October 10, 2026.
I found no insurer that publishes a price for NTL. So the article gives the one published range for bobtail.
Coverage terms differ by insurer and by state. Your policy and your lease decide a claim, not this article.
This is not insurance or legal advice. Ask a licensed agent to read your lease next to the policy.
Evidence label: researched from insurer terms and the federal rule, with one first hand note. Update schedule: twice a year.
Sources
- Non trucking liability insurance. Progressive Commercial. Accessed October 10, 2026.
- Owner operator insurance. Progressive Commercial. Accessed October 10, 2026.
- Commercial truck insurance cost. Progressive Commercial. Accessed October 10, 2026.
- 49 CFR 376.12, Lease requirements. eCFR. Accessed October 10, 2026.
- What is bobtail insurance, March 18, 2026. FreightWaves Checkpoint. Accessed October 10, 2026.
- Insurance filing requirements. FMCSA. Accessed October 10, 2026.
- How much does it cost to start a trucking company, April 2024. ATBS. Accessed October 10, 2026.
- Unladen liability program for Landstar owner operators. Gallagher Transportation Services. Accessed October 10, 2026.
- ATBS: average truck driver earnings in 2025 held mostly stable from 2024, April 15, 2026. FreightWaves. Accessed October 10, 2026.