Owner Operator vs Company Driver: Which is Right for You?

Are you wondering if being an owner operator or a company driver is the right choice for you?

Well, you're not alone.

Both options have their ups and downs, and it can be tough to decide which path to take. You may be a company driver curious about becoming an owner operator. Or you may be an owner operator wanting to sell your truck and drive for a company. Whatever your situation, it's important to weigh the various factors of each type of job that works best for YOU.

But don't worry, we're here to help you understand the differences between the two, so you can make an informed decision that works for you. Sure, on the surface, being an owner operator or a company driver may seem like the same job - hauling freight and hitting the road. But there's a lot more that goes into it than that. So, grab a cup of coffee, and let's chat about what it really means to be an owner operator versus a company driver.

Before we jump in, here is an outline of how we will explore this highly-debated topic:

• First, we will dive into the world of company drivers and go over the pros, cons, and everything you need to know about driving for a company.
• Second, we will learn everything there is to know about what life as an owner operator is like. You will learn about the pros,  cons, and all the details you'll need to make an informed decision.
• Finally, we will go over the factors you need to take into consideration when considering switching positions during your driving career. We will explore topics such as family life, entrepreneurship, and personal health.

Company Driver - Advantages

Essentially, as a company driver, you're a traditional employee. You'll be using your employer's truck and equipment to haul loads on specific routes. The pay is usually based on the miles you drive or the hours you work. The great thing about being a company driver is that you don't have to worry about finding and booking your own loads, your employer will keep you busy, and you can just focus on driving.

Time

One of the biggest benefits of being a company driver is that you can leave your job behind when your shift is over. No more worrying about truck maintenance or paperwork when you're off the clock. Plus, your free time is truly your own. No need to spend your days off fixing the truck or worrying about company equipment.

Money

Another perk is that the money you earn is all yours, and you don't have to worry about truck payments, repaid bills, or maintenance costs. And if you decide that you're not happy with the company you're working for, it's easy to change jobs without any financial repercussions. And with the driver shortage, there are plenty of company truck driving jobs available, which means job security. And let's not forget, there are no start-up costs, just jump in the truck and go. Overall, being a company driver can be less stressful and allow you to find a job that you truly enjoy.

Consistency

If you're looking for a steady income, becoming a company driver might be the right choice for you. With a company driver job, you'll have the security of a consistent paycheck, and some companies even offer bonuses when you sign on and hit certain milestones. Another perk is that you'll have the advantage of reliability. In general, you'll know what your earnings are going to be, and you won't have to worry about unexpected expenses. Plus, you might even get reimbursed for meals and lodging expenses while you're on the road.

Benefits

If you're thinking about becoming a company driver, there are definitely some benefits to consider. For one, you'll be an employee, which means you'll have access to valuable benefits like health insurance, vacation time, worker's compensation, and even a 401(k) retirement plan if your employer offers it.

Fewer worries

As a company driver, this means no more worrying about fuel costs going up and down, no loss of earnings if your truck breaks down because you'll get breakdown pay, and no loss of earnings if your loads are spaced apart because you'll get layover pay, and no loss of earnings if you have to deadhead to get a load because you'll be paid by the mile or hour.

That's pretty reassuring for those who prefer the predictability and reliability of a steady job. If you're looking for a more stable and secure trucking experience, becoming a company driver might be the right choice for you.

Company Driver - Drawbacks

If you're thinking about becoming a company driver, it's important to know that there are some downsides to consider. For starters, you may not make as much money as an owner operator. Some company driving jobs pay a set mileage rate, and while the pay rate may increase after a certain number of years of service, it will eventually top out to a maximum. Additionally, company drivers are often not paid for waiting time.

Home time + Slip seating

Another downside is that there can be less home time, especially for OTR drivers, as trucking companies want to keep the wheels turning on their trucks and maximize their profits. Slip seating can also be a nuisance factor as you could be left to clean up the mess from the previous company driver and you'll need to haul in and out of the truck your own tools, food, clothing, and personal supplies. Commuting costs can also be a burden if you live far from the company terminal.

Less freedom

Company drivers also have less freedom, as they are not allowed to have passengers without permission from the trucking company, and they must drive the truck assigned to them, which are often bare-bones trucks with no bells and whistles and not designed for driver comfort. Additionally, some carriers attempt to take advantage of company drivers and push them beyond reasonable limits.

However, we understand that some companies are paying more attention to company driver comfort to help improve driver retention. So, it's important to weigh the pros and cons and find the right company that will treat you well and pays you fairly.

The 3 Different Types of Owner Operators

If you're thinking about switching things up and becoming an owner operator, there are a few different routes you can take. One option is to be a lease operator. This means you'll lease your truck from a trucking company and contract to haul their freight. It's easier to get your hands on a truck and a load but do your research carefully before pursuing this option. The trucking company for which you're hauling is also your lender, so it's important to consider if you can trust them to give you enough business to make a profit or if you're on the hook for lease payments that may exceed your earnings.

Lease-purchase operator

Another option is a lease-purchase operator. This means you'll purchase your truck independently or lease it through a third-party leasing company and then contract to haul a single trucking company's goods. This option offers more financial independence than being a lease operator and easier access to loads than that of a self-employed independent contractor. However, be sure you can count on getting lots of miles at a reasonable rate, otherwise, after paying expenses, you may end up making less as an owner operator vs. company driver.

Self-employed independent contractor

Lastly, you have the option of being a owner operator that is a self-employed independent contractor. This means you'll be your own boss, you'll own your equipment and book your loads. You'll enjoy the freedom to choose the routes and loads you drive. However, keep in mind that you'll be responsible for finding, pricing, booking, and driving every trip (and return trip too)

Overall, it's all about finding the right fit for you,  and that may take some experimentation and research. Weigh the pros and cons carefully and decide which is right for you.

Owner operator - Advantages

There are definitely some benefits to this career path that you should know about. For starters, as an own-operator, you have the potential to earn more money than a company driver, if you're running your business efficiently. You'll typically get paid for extras that a company driver doesn't receive. And, with the right management, there can be significant tax advantages, such as lower tax rates, especially if you incorporate your business.

Another perk of being an owner operator is the ability to choose your own equipment. You don't have to deal with slip seating or other drivers messing with your equipment and changing settings in the truck. You can personalize the equipment to your liking, such as choosing a particular brand of seat or setting it at a preferred seat height. And, you can make sure the equipment is comfortable for you.

Being your own boss is another great advantage of being an owner operator. Forced dispatch is not as much of a problem and you usually have more choice in picking and choosing loads, depending on the company you're working for.

Additionally, as an owner operator, you have greater flexibility to take time off work. And, in terms of safety, owner operators may have an edge as they can choose a heavier profile and better quality tires for better grip.

For many drivers, the biggest advantage of being an owner operator is freedom. You get to make all the decisions, especially if you're a self-employed independent contractor. If you don't like feeling constricted, this could be a powerful benefit for you. Just remember, as an owner operator, you also have a lot of responsibility and you need to be prepared for the unexpected. But if you're willing to put in the work, the rewards can be significant.

Owner operator - Drawbacks

If you're thinking about making the switch to becoming an owner operator, it's important to weigh the pros and cons before making a decision. One of the biggest downsides is the financial risk involved. As an owner operator, you're responsible for paying for your own truck, maintenance, fuel, and insurance. This can add up quickly and put a strain on your finances. Additionally, you'll be responsible for your own taxes, which can be more complicated than as a company driver. And don't forget, when the truck isn't rolling, you're not making money. Also, you won't have access to company benefits such as vacation time or health insurance unless you find them independently. It's important to weigh all these factors and make sure you're comfortable with the level of financial risk before making the switch.

Factors to consider when deciding between company driver vs. owner operator

If you're thinking about making the switch from being a company driver to an owner operator, or vice versa, there are a few things to consider. One thing to keep in mind is your driving experience. If you're a newer truck driver, it may be beneficial for you to gain some experience as a company driver before taking the leap to become an owner operator. This way, you can learn about the industry from the inside and pick up valuable lessons along the way.

Another important factor to consider is your entrepreneurial spirit. Being an owner operator requires a lot of time and effort to run the business side of things. If you're more interested in just driving and not the business side, being a company driver might be a better fit for you.

Your personal finances also play a big role in this decision. As an owner operator, you'll need a strong credit score and a bit of a financial cushion to handle the start-up costs and expenses that come with running your own business.

Your personal health is also something to think about. Being on the road for long periods of time can take a toll on your health, and if you have a medical emergency, it can be a lot harder to handle as an owner operator compared to being a company driver where the company will take care of things for you.

Family life is also something to consider. Company drivers are often expected to be away from home for long periods of time, but as an owner operator, you have more control over your schedule. But, you should also consider the type of freight you prefer hauling, if you prefer hauling heavy cargo such as fluid loads, you might prefer to work for a company as these loads are tough on trailers, and your equipment and insurance should be ready to take on this challenge.

Ultimately, it's all about finding the right fit for you and your lifestyle. Take the time to weigh the pros and cons of each option and make an informed decision.

Company driver vs. Owner operator: Which is better?

If you're just starting out as a truck driver, being a company driver might be the better option for you. It allows you to gain experience and learn the industry before diving into the responsibilities of being an owner operator. Additionally, if you're not financially prepared to handle tractor repairs or maintenance costs, being a company driver can provide a bit of a safety net. For those who prefer predictability over risk, starting a business from scratch may not be the best option.

However, if you have been driving trucks for several years or more, it may make sense for you to consider becoming an owner operator. This career path does require financial responsibility in order to handle any costs associated with tractor repairs or maintenance. But it also provides an opportunity for personal growth as well as the potential of creating your own business and enjoying the rewards that come along with it. It's important to weigh both owner operator vs company driver options when making this important career decision so make sure know all of the pros and cons before taking the plunge!

In conclusion, when it comes to deciding between being an owner operator or a company driver, it's all about understanding what you want from your trucking career. If you're new to the industry, it's wise to gain experience as a company driver before taking on the financial responsibilities of being an owner operator. On the other hand, if you've been driving for a while and know what you love about the trucking life, there are plenty of opportunities to grow and earn more as a driver. Ultimately, the most important thing is to partner with a good carrier and make a choice that aligns with your personal goals and needs. Remember, there's no one-size-fits-all solution and the right choice for you may be different from someone else's.

Our most important Owner operator vs Company driver tip

When it comes to company drivers, making sure you choose a reputable trucking company is crucial. Companies that are reliable and proven can offer company driver adequate pay and benefits along with providing a good job experience. As someone looking to become a company driver, the company you choose should have a strong reputation in the industry, with an emphasis on honoring their commitments to company drivers. To properly compare companies and make sure you are choosing one that is best suited for your needs as an owner operator, do research such as reading through company reviews from current and former company drivers, always have questions prepared when interviewing with company recruiters, and ask valuable contacts in the industry for advice before making a decision.

If you're interested in learning more about how you can start your career with MigWay, give us a call today and one of our knowledgeable representatives will be happy to answer any questions you may have. At MigWay, we are dedicated to providing our truck drivers with the best pay and benefits in the industry, as well as a supportive and safe working environment. Don't wait - let's get you started on your new career journey with MigWay!