When you step out each and every passing day, you are sure to lay eyes on trucks with supplies and goods being hauled to different destinations. In essence, these trucks fall under two categories: driver-owned trucks (the driver is the truck owner) and company-owned trucks. Owner-operators are truck drivers that own their own trucks and only haul truckloads from the company. On the other hand, we have the company owned-trucks, where the company owns the truck and the driver is hired in the capacity of a company truck driver. Indeed, there are so many things that make these two categories of truck drivers different from each other.
It is always best for people who just got their CDL to become company truck drivers. For starters, this would allow you to make the decision of whether or not to become a truck owner or a semi-truck owner. This start should also be a stepping-stone to becoming an experienced truck driver with a great industry reputation before joining the ranks of owner-operators.
To begin with, a company driver is one to receive a truck from the employer. With regard to payment, they are either paid by the hour or by the mile depending on whether they are driving locally or interstate. The company takes charge of everything concerning the truck: insurance, payment of the truck, repairs, etc. The company pays for all fuel expenses. Indeed, most company truck drivers get to drive the latest trucks as the company regularly changes its fleet of trucks for customer satisfaction.
On the other hand, owner-operators own their own trucks and indeed, they tend to amass more income than would the company driver. Despite the fact that they generate more money, they also have an overhead that is quite high. They are in charge of covering repairs, payments, maintenance, and insurance. However, they are free to use a broker to haul whatever it is they choose to haul. They could either haul the truckloads or lease their trucks to a company in need. As opposed to the company driver who has little or no say in which loads he hauls, the truck owner has a say in the truckloads he hauls.
While on the road, the company truck driver will have use for phone calls, showers, and food as opposed to the truck owner himself. Certain employers provide the drivers with a daily expense allowance, to cover such needs. Such an allowance, a per diem, is generally included in the driver’s pay package. As such, the driver would still have to pay from his pockets, and then when he receives his check, be reimbursed. Considering the driver is not able to use up what is scheduled for his daily expenses, he may be able to amass some extra income as opposed to the Owner-operators who would have to take care of such personally without being reimbursed.
As a company truck driver, one has the option to purchase health insurance and should be granted paid leave of absence for holidays. This is always the case when the driver has been with the company for some time. Generally, these extras are always dependent on the regulations and specifics of the company in question. This does not apply to truck owners, as they take charge of all their needs.
In contrast with company truck drivers, owner-operators are in charge of their own fuel, meals, shower, etc. The truck owner must ensure that there is enough money to cover for taxes because this needs to be taken care of by them and shall not be reimbursed with their pay package. Moreover, money for repairs needs to be set aside should in case any unpleasant issues arise while they are on the road. Also, owner-operators must take care of their personal health insurance, and should they take some time off, they will not receive any payment for that time.
Whether you are a driver or owner-operator, you can save your company money by using the Fuelz Fleet Card. With real-time reporting, the Fuelz Card can help fleet owners save money. Contact us today to get started!