Here’s the Deal
When you are leased to a carrier and under dispatch, the carrier’s auto liability policy covers your truck. But the moment you drop that load and you are no longer under dispatch — driving to the truck stop, heading home for the weekend, running to get fuel — the carrier’s policy stops covering you.
That gap is where bobtail insurance lives. It covers your truck when you are operating it outside of dispatch. And if you are an owner-operator leased to a carrier, this gap is real and it is dangerous to leave uncovered.
There is no federal requirement for bobtail coverage. The FMCSA does not mandate it. But many carriers require it as a condition of your lease, and common sense demands it even when nobody requires it. You are driving an 80,000-pound vehicle on public roads — you need liability coverage every time that truck moves.
Bobtail vs Non-Trucking Liability — They Are Different
Most people use “bobtail” and “non-trucking liability” interchangeably. They are not the same thing, and the difference matters.
Bobtail insurance covers your truck any time it is not under dispatch, regardless of whether you have a trailer attached. The name comes from “bobtailing” — driving a tractor without a trailer — but coverage applies whether you are bobtailing, deadheading empty, or driving with a personal trailer.
Non-trucking liability (NTL) is narrower. It only covers non-business use — driving home, grocery store, mechanic. The critical distinction: if you are deadheading to pick up your next load, some NTL policies argue that is still business use and deny coverage.
With true bobtail, any time you are not under active dispatch, you are covered. With NTL, the insurer may question whether your use was truly “non-business.” When shopping, ask your agent: “Does this cover me when deadheading between loads?” The answer tells you which type you actually have.
The Deadhead Gap
This is the scenario that catches owner-operators off guard.
You deliver a load in Atlanta. Your dispatcher does not have another load for you yet. You deadhead 150 miles to a truck stop near Chattanooga because that is a better area to pick up your next load. On the way, you are involved in an accident.
Are you under dispatch? No — you dropped your load and have not been dispatched to a new one. Is the carrier’s policy covering you? Almost certainly not.
Are you on personal business? Not exactly — you are repositioning for your next business load. Does your NTL cover you? Maybe. Maybe not. It depends on the policy language and how the insurer interprets “non-trucking” use.
This is the deadhead gap, and it is one of the most common coverage disputes for owner-operators. True bobtail coverage eliminates this gap because it covers you any time you are not under active dispatch, regardless of why you are driving.
If you frequently deadhead between loads (and most owner-operators do), make sure your policy covers this scenario explicitly. Do not assume. Ask. Get it in writing.
When You Need Bobtail Coverage
If any of these describe you, bobtail or NTL coverage is not optional: you are leased to a carrier (their policy only covers you under dispatch), you drive your truck for personal use (weekends, errands, appointments), you deadhead between loads, or you drive to fuel or maintenance without an active dispatch. If your truck is moving and no carrier policy is active, you need this coverage.
What Bobtail Coverage Typically Includes
A standard bobtail or NTL policy provides:
Liability coverage — pays for bodily injury and property damage you cause to others while not under dispatch. Typical limits range from $750,000 to $1,000,000 CSL — matching your carrier’s liability limit is a good idea. Some policies include medical payments and uninsured/underinsured motorist coverage.
Bobtail does NOT include physical damage for your truck, cargo coverage, or workers’ comp. Those are separate policies.
What It Costs
Bobtail and NTL coverage is one of the more affordable policies in a trucker’s insurance program. Typical costs run $30 to $50 per month, depending on your driving record, location, and coverage limits.
Factors that affect the price:
- Your driving record. Clean MVR and no accidents keeps it cheap.
- Your location. California, Texas, and Florida cost more than Wyoming or Montana.
- Your driving radius. If you drive the truck significant personal miles, expect to pay a bit more.
- Coverage limits. $750K is cheaper than $1M. But the difference is often only a few dollars a month.
For $30 to $50 a month, you get peace of mind that every time your truck moves, you have liability coverage. That is less than a tank of DEF fluid. There is no reason to go without it.
Common Claims Scenarios
The truck stop run. You drive across the street for a shower and food after delivering your load. Someone pulls out in front of you. No dispatch active. Bobtail covers this.
Driving home for the weekend. Finished your last load Friday, heading home 200 miles. Accident on the way. Bobtail covers you.
Repositioning. Dropped a load in a rural area, driving 100 miles to a hub city for your next load. No dispatch yet. Bobtail covers you.
Going to the shop. Driving to a repair facility, not under dispatch. Bobtail covers you.
In each scenario, without bobtail you would be personally responsible for all damages. An uninsured accident in a commercial vehicle can result in lawsuits, license suspension, and financial ruin.
What Your Carrier’s Lease Says
Read your lease carefully. Most require NTL or bobtail and define “under dispatch” — some broadly (accept load to confirm delivery), others narrowly (only while actively transporting). The narrower the definition, the more time you spend uncovered without bobtail. Most leases explicitly state the carrier assumes no liability for non-dispatch accidents. If your policy does not meet lease requirements, you could be in breach on top of being uninsured.
The Bottom Line
Bobtail coverage fills a critical gap for owner-operators. Every time you move your truck without being under active dispatch, you are exposed. A $30-50 monthly investment eliminates that exposure.
Get true bobtail coverage that includes deadheading, not just narrow non-trucking liability. Read your carrier lease to understand when their policy starts and stops. And never, under any circumstances, move your truck without knowing that some policy is covering you.
It is one of the cheapest and most important policies in your insurance program. There is no good reason to go without it.