The Costs of Doing Business as an Owner-Operator in the Trucking Industry

1. Equipment Costs 

One of the most significant expenses for an owner-operator is the cost of acquiring and maintaining a truck and trailer. 

• New vs. Used Trucks – A new truck can cost between $150,000 and $200,000, while a used truck may range from $50,000 to $130,000. 
• Leasing vs. Buying – Leasing may require lower upfront costs but can be more expensive in the long run due to interest and maintenance restrictions. 
• Trailer Expenses – Depending on the type, trailers can cost anywhere from $30,000 to $70,000. 
• Depreciation – Trucks lose value over time, affecting resale and trade-in options. 

2025 Trend: Truck prices have remained high due to supply chain disruptions, though they are expected to stabilize as new inventory increases. 

2. Fuel Costs 

Fuel is typically the largest ongoing expense for an owner-operator. 

• Fuel Efficiency Considerations – Modern trucks average 6-8 miles per gallon (MPG), and fuel costs can range from $3.50 to $5.00 per gallon. 
• Route Planning and Fuel Cards – Using fuel-efficient routes and fuel discount programs can help lower expenses. 
• Alternative Fuels – Electric and hybrid trucking options are emerging, but adoption is still slow due to high initial costs. 

2025 Trend: Fuel prices remain volatile due to global economic conditions, though many fleets are adopting fuel-saving technologies. 

3. Insurance Costs 

Owner-operators must carry multiple types of insurance to protect their business and remain compliant with regulations. 

• Primary Liability Insurance – Required by the FMCSA, covering at least $750,000 in damages ($1 million is recommended). 
• Cargo Insurance – Protects the freight being hauled; costs vary by load type but typically range from $500 to $2,000 per year. 
• Physical Damage Insurance – Covers repairs and replacements in case of accidents. 
• Bobtail/Non-Trucking Liability – Provides coverage when driving without a trailer attached. 
• Workers’ Compensation or Occupational Accident Insurance – Protects against injuries sustained on the job. 

2025 Trend: Insurance premiums continue to rise due to an increase in accidents and litigation. 

4. Maintenance and Repairs 

Preventative maintenance helps avoid costly breakdowns. 

• Routine Maintenance – Oil changes, tire replacements, and brake checks can cost between $10,000 and $15,000 annually. 
• Major Repairs – Unexpected repairs like engine rebuilds can cost $20,000 or more. 
• Emergency Roadside Assistance – Subscriptions to services like TA Petro or AAA can be helpful. 

2025 Trend: Rising labor and parts costs continue to push maintenance expenses higher. 

5. Permits, Licensing, and Taxes 

Operating legally requires a variety of permits and tax payments. 

• International Fuel Tax Agreement (IFTA) – Tracks fuel purchases and tax obligations across state lines. 
• Unified Carrier Registration (UCR) – Annual registration for interstate carriers. 
• International Registration Plan (IRP) – A tax system for trucks operating in multiple states. 
• Heavy Vehicle Use Tax (HVUT) – A federal tax for vehicles over 55,000 pounds. 

2025 Trend: Permit and registration fees have remained stable, but tax rates could fluctuate with state regulations. 

6. Business Overhead and Administrative Costs 

Running a trucking business involves more than just driving. 

• Accounting and Bookkeeping – Hiring a professional or using software like QuickBooks can cost from $500 to $3,000 annually. 
• Dispatch Services – Some owner-operators hire dispatchers for load management. 
• Electronic Logging Device (ELD) – Required for tracking hours of service, with an average cost of $500-$1,500 per year. 

2025 Trend: More trucking businesses are investing in automation and software to streamline operations. 

7. Load Board and Brokerage Fees 

Finding consistent freight is essential for profitability. 

• Load Board Subscriptions – DAT, Truckstop.com, and other platforms cost between $40-$150 per month. 
• Broker Fees – Typically range from 10-20% of the total load payment. 

2025 Trend: More truckers are seeking direct contracts to reduce reliance on brokers. 

8. Personal Expenses on the Road 

Long-haul trucking comes with additional personal expenses. 

• Food and Lodging – Truck stops, meals, and hotel stays can add up to $200-$500 per week. 
• Cell Phone and Internet – Essential for communication and navigation. 
• Health Insurance and Retirement Savings – Self-employed drivers must plan for their own medical and retirement needs. 

2025 Trend: More drivers are investing in healthier meal options and self-care to improve long-term health. 

Final Thoughts 

Operating as an owner-operator in 2025 requires careful budgeting and strategic planning. Fuel, maintenance, insurance, and licensing costs continue to rise, making efficiency and cost control more critical than ever. By understanding each cost category and proactively managing expenses, owner-operators can improve their profitability and stay competitive in an evolving industry.