Cost
How much is power only insurance per month?
Power only means you bring the tractor and driver, and a shipper, broker or another carrier supplies the trailer. Here is what the monthly insurance bill looks like, what the trailer coverage adds, the limits power only programs ask for and how to keep the premium down.
Power only insurance cost per month
Little data is published on power only specifically, so the best benchmarks combine a power only expense study, one carrier’s real bill and general for-hire trucking averages. The MKE Logistics owner told Bobtail that the premiums he hears about from other carriers run from $16,000 to $40,000 a year, depending on the company, driving records and safety history.
Progressive Commercial’s figure covers liability and physical damage on new 2025 policies with no driver violations, so cargo and trailer coverage come on top, and a ticket or a new authority pushes it higher.
| Benchmark | Per year | Per month |
|---|---|---|
| O Trucking budget, all coverages | $10,000–$18,000 | About $833–$1,500 |
| MKE Logistics, power only carrier | $24,000 | $2,000 |
| Range MKE’s owner hears from peers | $16,000–$40,000 | About $1,333–$3,333 |
| Progressive average, for-hire transport (liability and physical damage) | About $11,112 | $926 |
| Full Amazon Relay-compliant policy | $10,000–$20,000 | About $833–$1,667 |
Why power only can cost less than pulling your own trailer
The savings come from the trailer, not the tractor. O Trucking estimates that a carrier with its own trailer adds $8,600 to $18,600 a year in trailer payment, insurance, maintenance and registration. Triumph, a trucking payments and factoring company, says overall premiums may be lower in a power only model because you aren’t insuring trailers you don’t own.
Liability doesn’t shrink, though. Triumph points out that your liability policy still has to respond for trailers you pull but don’t own, and cargo coverage is still required. High-value or specialized trailers can push the trailer coverage back up.
What trailer interchange and non-owned trailer coverage cost
Both pay for physical damage to a trailer you pull but don’t own, and neither covers the freight. Trucking Insurance Services explains that trailer interchange follows the trailer the whole time it is in your possession under a written interchange agreement, hooked or dropped, while non-owned trailer physical damage applies only while the trailer is attached to your truck. If you drop trailers, run Amazon Relay or work intermodal, you need trailer interchange; Cogo Insurance notes non-owned coverage does not meet UIIA requirements at ports and railyards.
Published prices vary widely by limit, deductible and how often you swap equipment:
| Coverage | Per year | Per month |
|---|---|---|
| Trailer interchange, one truck, $20,000–$30,000 limit (FreightWaves) | $120–$450 | About $10–$38 |
| Trailer interchange, $50,000+ limit (FreightWaves) | $750–$1,500 or more | About $63–$125 |
| Trailer interchange (Trucking Insurance Services) | $1,000–$3,500 | About $83–$292 |
| Non-owned trailer physical damage, $25,000 limit (Trucking Insurance Services) | $375–$1,250 | About $31–$104 |
The limits that set your starting price
FMCSA’s minimum for for-hire carriers of non-hazardous property in vehicles of 10,001 pounds or more is $750,000 in liability, with no federal cargo requirement except for household goods movers. Power only programs ask for more, and you price your policy to the strictest one you plan to use. The Freight Guru reports most brokers’ power only programs require $20,000 to $50,000 of trailer interchange.
| Who sets it | Auto liability | Cargo | Trailer coverage |
|---|---|---|---|
| FMCSA minimum (general freight, 10,001+ lb) | $750,000 | None | None |
| Big M Transportation power only | $1,000,000 | $100,000 | $35,000 trailer interchange |
| Amazon Relay (pulling Amazon trailers) | $1,000,000 | $100,000 | $50,000 trailer interchange |
| Prime Power Fleet | Required | Required | Non-owned trailer interchange required |
What moves your power only premium
The tractor’s liability rate drives the bill, and the trailer coverage adds its own factors:
- Driving records: Progressive Commercial says even a minor speeding ticket can significantly increase a trucker’s rate.
- Authority age: O Trucking’s first-year power only scenario assumes higher insurance costs for a new authority.
- Trailer limit and deductible: FreightWaves Checkpoint advises matching the limit to the most valuable trailers you will haul.
- Where you run: dense metro areas, port zones and theft-prone regions tend to carry higher trailer interchange rates, according to FreightWaves.
- Interchange frequency: daily port or rail moves cost more than occasional swaps.
- How you describe the operation: Pullsure, a Washington trucking agency, warns that declaring owned-trailer general freight while running power only creates a disclosure problem.
How to lower power only insurance costs
The cheapest policy meets every program you use without buying the same coverage twice:
- Collect each program’s insurance sheet and buy one trailer limit high enough for the strictest of them.
- Pick non-owned trailer coverage only if you never drop trailers; otherwise trailer interchange avoids a denied claim.
- Size the limit to real trailer values. The Freight Guru puts a new dry van at $30,000 to $60,000, and anything above your limit is yours to pay.
- Choose the highest deductible the interchange agreement allows and you can afford.
- Photograph every trailer at hook and drop; FreightWaves notes interchange receipts and condition notes often decide which insurer pays.
- Compare several insurers for the whole package. A broker such as Florin can compare quotes for liability, cargo and trailer coverage together.
Frequently asked questions
Is trailer interchange insurance required by law?
No. FreightWaves Checkpoint notes that FMCSA does not mandate it. Brokers, shippers, ports and equipment providers require it by contract when you take custody of their trailer.
Does trailer interchange cover the freight in the trailer?
No. Trailer interchange and non-owned trailer coverage pay only for damage to the trailer. You need a motor truck cargo policy for the goods.
Do I need cargo insurance for power only if FMCSA doesn’t require it?
Usually, yes. Power only programs such as Big M Transportation and Amazon Relay ask for $100,000 in cargo coverage before they tender loads.
Do I need bobtail insurance for power only?
Bobtail and non-trucking liability are designed for owner-operators leased to another carrier. If you run power only under your own authority, ask your agent to confirm how your primary liability treats miles with no trailer attached before buying a separate policy.
Figures are third-party estimates and examples, not quotes. Coverage depends on the policy terms and underwriting, and rules vary by state.