From leased-on to your own MC
You've run a year or two leased on to another carrier's authority. The numbers say it's time to run your own MC — keep more of the line haul, set your own rates, choose your own freight network. We file Form OP-1 with FMCSA for $199 service + $300 FMCSA, MC active in 3 to 6 weeks under 49 CFR §365.109.
When the math says convert
Leased-on operators typically take home 70-75% of the line haul; the carrier keeps the rest in exchange for their authority, insurance umbrella, customer relationships, dispatcher, and back-office compliance. On your own MC you keep 100% of the line haul but absorb every cost that was previously bundled — primary insurance (8K-12K/year vs the leased-on $30-$80/month), BOC-3 ($75 one-time), UCR ($80/year Tier 1), MCS-150 (free, biennial), Form 2290 ($550/year top weight class), §391 driver-qualification recordkeeping, §382 drug-and- alcohol program, §395 hours-of-service ELD compliance, and the new-entrant safety audit FMCSA schedules in your first 12 months.
The breakeven is usually 60-65% utilization on the truck. Below that, leased-on wins; above it, your own MC clears $0.10-$0.30 per mile more after expenses for most operators. See our operating-authority cost breakdown and the cost FAQ for the math detail.
Timing the conversion
The 21-day FMCSA vetting window plus 1-2 weeks of processing means OP-1 should land 4-5 weeks before your target conversion date. Most carrier-lease agreements have a 30-day termination clause, so the cleanest pattern is: apply for OP-1 immediately, time the lease termination 30 days out so the lease ends close to when your MC activates, secure your own primary insurance during the window so the BMC-91 lands inside the 21-day window. Carriers who time it tightly switch authorities with a single day off the road.
What's included in our service
- USDOT registration if you don't already have one
- Form OP-1 submitted to FMCSA with the $300 fee
- BOC-3 + insurance coordination guidance
- SAFER monitoring through the 21-day window
- Activation confirmation when MC flips to AUTHORIZED
- Conversion-timing guidance against your current lease termination clause
How fast can we file
OP-1 submission within 1-3 business days. The 21-day FMCSA vetting window starts at acceptance. No expedite path.
Pricing
$199 service + $300 FMCSA = $499 total.
Conversion authority questions
When does it make sense to convert from leased-on to your own MC?
When the math on rate per mile after costs (insurance, BOC-3, UCR, MCS-150 admin, fuel cards, ELD subscription) puts you ahead of the percentage you're paying to your current carrier. For most leased-on owner-operators getting paid 70-75% of the line haul, the breakeven on running your own MC is 60-65% utilization on the truck plus disciplined back-office work. Below that, leased-on is more profitable; above it, your own MC wins by $0.10-$0.30 per mile after all expenses.
What happens to my current lease while my MC is processing?
Your current carrier-lease typically has a 30-day termination clause. Most leased-on operators time the OP-1 application so the MC activates around the same time the lease ends. The 21-day FMCSA vetting window plus typical 1-2 weeks of FMCSA processing means the OP-1 should land 4-5 weeks before your target start date. Some operators stay leased-on while applying and only terminate the lease once their MC activates.
Will my insurance jump when I convert?
Yes, typically by 2-3x. As a leased-on operator, your insurance is usually wrapped into the carrier's primary coverage with you carrying only bobtail/non-trucking-liability ($30-$80/month). On your own MC, you carry the BMC-91 primary cargo + auto liability filing — typically $8K-$12K/year for a new single-truck operator with a clean MVR. The math should already include this in the breakeven calculation.
Other authority contexts
You might also need
- BOC-3 — FastBOC3Filing
- Driver screening — FastDriverScreening