The Essential Differences Between Owner Operators and Company Drivers
When you go out every passing day, you will surely see trucks with supplies and goods being transported to different destinations. These trucks essentially fall into two categories: driver-owned trucks (the driver owns the truck) and company-owned trucks. Owner operators are truck drivers who own their own trucks and only haul company truck loads. On the other hand, we have our own trucks, where the company owns the truck and the driver is hired as a company truck driver. In fact, there are many things that make these two categories of truckers different from each other and this article will expose those differences, while specifying the role that each plays.
It is always better for people who just got their CDI to become company truck drivers. For starters, this would allow you to make the decision of whether or not to become a truck or semi-trailer owner. This beginning should also be a stepping stone to becoming an experienced trucker with a great reputation in the industry before joining the ranks of owner operators.
To begin with, a company driver is one who receives a truck from the employer. Regarding pay, they are paid by the hour or by the mile depending on whether they drive locally or interstate. The company takes care of everything related to the truck: insurance, truck payment, repairs, etc. The company pays all fuel costs. In fact, most of the company’s truckers can drive the latest trucks, as the company periodically changes its fleet of trucks to satisfy the customer.
On the other hand, owner operators own their own trucks and actually tend to earn more income than the company driver. Even though they make more money, they also have quite high overheads. They are responsible for covering repairs, payments, maintenance and insurance. However, they are free to use a corridor to transport whatever they choose to transport. They could haul truck loads or lease their trucks to a company that needed them. Unlike the company driver who has little or no say in the loads he hauls, the truck owner has a say in the loads he hauls.
While on the road, the company truck driver will have use of phone calls, showers, and food instead of the truck owner himself. Certain employers provide drivers with a daily expense allowance to cover such needs. Such an allowance, a per diem, is usually included in a driver’s pay package. As such, the driver would still have to pay out of pocket and then when he receives the check from him, he will be reimbursed. Considering that the driver cannot use what is scheduled for his daily expenses, he may be able to accumulate some additional income compared to owner operators who would have to take care of them personally without receiving funds.
As a company truck driver, one has the option to purchase health insurance and must be granted paid vacation leave. This is always the case when the driver has been with the company for some time. Generally, these extras always depend on the regulations and specificities of the company in question. This does not apply to truck owners, as they take care of all your needs.
Unlike company truckers, owner operators are in charge of their own fuel, meals, showers, etc. The truck owner needs to make sure there is enough money to cover the taxes as they are responsible for this and will not be reimbursed with their pay package. Also, money for repairs should be set aside in case nasty problems arise while they’re on the road. In addition, owner-operators must take care of their personal health insurance and should they take time off, they will not receive any payment for that time.