Bobtail Insurance: What It Covers, What It Costs, and When You Need It
If you’re an owner-operator leased to a carrier, you’ve probably been told you need bobtail insurance. Maybe you’re not sure what it covers. Maybe you’re wondering if it’s worth the cost. Let me clear this up.
What Bobtail Insurance Actually Covers
Bobtail insurance — also called non-trucking liability (NTL) — covers your truck when you’re driving without a trailer and not under dispatch.
The key phrase is “not under dispatch.” That means:
- Covered: Driving home after dropping a load
- Covered: Driving to a truck stop between loads
- Covered: Deadheading (empty) to pick up a load, before you’re officially dispatched
- NOT covered: Driving with a loaded trailer
- NOT covered: Driving while dispatched (even if empty)
When you’re under dispatch and hauling for your carrier, their liability coverage kicks in. Bobtail insurance is the gap coverage for everything else — the miles you drive that have nothing to do with a specific load.
Why Owner-Operators Need It
Most carriers provide liability coverage while you’re actively hauling for them. But the moment you drop a trailer or the load is delivered, you’re on your own.
Think about the drive home. The trip to the shop. The weekend. Your carrier’s insurance doesn’t cover any of that. If you cause an accident during those miles, you’re personally liable.
Bobtail insurance fills that gap. For owner-operators leased to a carrier, it’s essentially required — most carriers will require you to carry it before they’ll put you on their operating authority.
What Bobtail Insurance Does NOT Cover
This is the part people miss.
It doesn’t cover the trailer. Bobtail means you’re driving without a trailer attached. If there’s a trailer attached — even an empty one — you need different coverage (usually the carrier’s hired/non-owned coverage or your physical damage policy covers the trailer).
It doesn’t cover physical damage to your truck. Bobtail/NTL is liability coverage only. If you hit a deer or back into a gas pump, that’s a physical damage claim, not a bobtail claim.
It doesn’t cover cargo. No trailer, no cargo. That’s a separate policy anyway.
How Much Does Bobtail Insurance Cost?
Typical range: $400–$1,200 per year.
Most owner-operators pay somewhere in the $500–$800 range annually. That’s roughly $40–$70 a month.
What affects your price:
- Driving history — A clean record gets you the low end. Violations or accidents push it higher.
- State — Some states are more expensive due to litigation environment (Texas, Florida, California cost more).
- Your carrier — Some carriers have preferred arrangements with insurers that affect pricing.
- Coverage limits — Standard is $1M. Occasionally you’ll see lower limits available, but most carriers require $1M.
It’s one of the cheaper parts of your insurance stack. Don’t skip it to save money — the risk isn’t worth it.
Bobtail vs. Non-Trucking Liability: Same Thing?
Almost. The terms are used interchangeably but technically there’s a small difference.
Bobtail insurance originally referred specifically to driving without a trailer. Non-trucking liability is slightly broader — it covers personal use of the truck, not just bobtail operation.
In practice, most policies sold as “bobtail insurance” are actually NTL policies that cover both. When you’re shopping, ask exactly what’s covered. Most agents (including us) use the terms interchangeably because the policies are nearly identical in practice.
Owner-Operator vs. Your Own Authority: Different Situation
Everything above applies to owner-operators leased to a carrier.
If you have your own operating authority (your own MC number), bobtail insurance probably isn’t what you need. You need a full commercial auto liability policy that covers you at all times — dispatched or not. Your liability coverage needs to be on your own authority.
The bobtail/NTL product is specifically designed for the lease arrangement where the carrier’s authority covers you while working.
How to Get the Best Rate on Bobtail Insurance
Shopping bobtail/NTL is straightforward if you know what to look for.
Get multiple quotes. Rates vary more than you’d expect between carriers, even for the same driver and truck. A $50/month difference compounds fast over a multi-year lease.
Bundle if you can. If you’re shopping your full insurance stack — physical damage, occupational accident, cargo — bundling with one agency often gets you a better rate than placing each policy separately. We can usually beat standalone pricing when we write multiple lines.
Watch the exclusions. Some discount policies exclude personal use (social, recreational driving). If your bobtail policy doesn’t cover you driving to the grocery store in your truck, it’s not doing what you think it’s doing.
Check your carrier’s requirements first. Most carriers require $1M per-occurrence minimum. Some require specific insurers. Get the requirement in writing before you shop.
What to Ask When You Call
When you’re shopping this coverage:
- What’s the per-occurrence limit? Should be $1M minimum.
- Is it true non-trucking liability, or just bobtail? Confirm it covers personal use miles.
- Does it include uninsured/underinsured motorist? Some policies include it, some don’t.
- Are there mileage restrictions? A few policies limit how many miles you can drive while not dispatched.
- Is it admitted or surplus lines? Admitted carriers are regulated by your state’s insurance department. Surplus lines carriers operate outside that framework — not necessarily bad, but know what you’re buying.
How Bobtail Fits Into Your Total Insurance Stack
Owner-operators leased to a carrier typically carry:
- Primary liability (provided by the carrier while dispatched)
- Bobtail / non-trucking liability (your coverage when not dispatched) — this is what we’re talking about
- Physical damage (collision and comprehensive on your truck)
- Occupational accident (disability/death coverage since you’re self-employed)
- Cargo insurance (optional for leased operators — usually the carrier’s responsibility)
Bobtail fills a specific gap. It doesn’t replace any of those other lines, and none of them replace it. Don’t assume your physical damage policy or the carrier’s coverage handles the bobtail situation — it usually doesn’t.
New Authority vs. Leased Operator: Two Different Paths
There’s a version of this question that comes up often with truckers who are thinking about going independent.
If you’re currently leased to a carrier, bobtail/NTL makes sense. But if you’re thinking about pulling your own authority — getting your own MC number and running independently — the math changes completely. Our new ventures page walks through what that transition involves from an insurance standpoint.
Under your own authority, you need a commercial auto liability policy that covers you at all times, not just when off dispatch. The carrier’s insurance goes away entirely. You become the carrier. That’s a bigger policy, a bigger premium, and a different set of requirements.
We work with a lot of owner-operators who are deciding between staying leased vs. going independent. The insurance picture is one piece of that decision. If you want to understand what it would cost to get your own authority — including the full insurance stack — our new authority guide covers it end-to-end.
Get a Quote
At RMS, we write bobtail/NTL for owner-operators in 42 states. If you have questions about your specific situation — especially if you’re trying to figure out what you actually need — call us at 208-800-0640. We’ll tell you straight.
Ready to get a number? Get a free quote here — takes about 3 minutes.
Jake Deaton is an independent insurance agent specializing in commercial trucking coverage. RMS Truck Insurance is based in Idaho and licensed in 42 states.