DriveAway Insurance Coverage

Driveaway insurance is commercial auto coverage for drivers who transport vehicles by driving them from one place to another, rather than hauling freight on a trailer. It protects the driver, the public, and the vehicle being delivered — and it’s what lets an owner-operator legally run driveaway loads under their own authority.

If you move cars, trucks, RVs, or chassis for dealers, auctions, manufacturers, or repossession companies, your coverage needs are different from a trucker who hauls standard freight. The vehicle you’re driving usually isn’t yours, so the risks — and the policy you need — don’t look like a typical hauling operation.

Below, we break down what a driveaway driver does, exactly what driveaway insurance covers, what it costs, and the FMCSA requirements you have to meet.

What is a DriveAway Driver?

A driveaway driver is a professional driver who delivers vehicles — cars, trucks, RVs, tractors, and trailers — from point A to point B by driving them, instead of loading them onto a trailer.

Driveaway drivers commonly move:

• Cars, trucks, and SUVs
• Cab-and-chassis units and box trucks
• Tractors and semi-trucks
• RVs and motorhomes
• Utility and emergency vehicles
• Trailers and towable equipment

Businesses use driveaway drivers because it’s usually cheaper and faster than trailer hauling — there’s no rig to load and no other stops to make, so the unit gets where it’s going sooner.

Driveaway vs. towaway. The FMCSA groups this work under “driveaway-towaway” operations. In a driveaway, the vehicle is driven under its own power. In a towaway, it’s towed. Some jobs combine units — decked trucks or saddle-mount configurations — where one vehicle carries or tows another. Which category you fall into affects your licensing and your coverage, so it’s worth knowing where your operation fits.

Do you need a CDL? In many cases, yes — but not always. Driving a single vehicle under the CDL weight threshold may not require a commercial license, while decked or combination units over 26,001 lbs generally do. Some driveaway companies also move road-legal heavy machinery, which requires a CDL.

Who Needs Driveaway Insurance?

Driveaway coverage isn’t only for owner-operators. You likely need it if you’re:

• An owner-operator running driveaway loads under your own authority
• A dealership or auction moving inventory between lots or to buyers
• A repossession company returning vehicles to lenders or dealers
• An RV or motorhome transporter delivering units from manufacturers to dealers
• A driveaway or towaway company with drivers moving units for clients

In every one of these cases, the vehicle being moved belongs to someone else — which is exactly why standard trucking policies often fall short.

What Does DriveAway Insurance Cover?

Coverage varies by carrier, but most driveaway policies are built from the same core pieces:

Primary Liability

To get your Motor Carrier (MC) number and operate legally, you need primary liability coverage. It pays for injuries and property damage to others if you’re at fault in an accident. For driveaway operations, the FMCSA requires a minimum of $750,000 in coverage — your policy limit has to meet or exceed that to run legally. Many shippers and contracts require $1,000,000. This is the same primary liability (BIPD) coverage that underpins any for-hire trucking operation.

Coverage for the Vehicle You’re Driving

This is the piece drivers most often get wrong. The vehicle you’re delivering isn’t yours — it’s in your care, custody, and control — so damage to it isn’t handled by your liability coverage, and it isn’t automatically covered by a standard policy. Make sure your policy specifically covers physical damage to the non-owned unit you’re driving, whether from a collision, theft, or weather. Confirm this in writing before you take a load.

Cargo Insurance

Driveaway drivers move expensive units, so adequate cargo insurance matters. It covers the vehicles you’re transporting. Some driveaway companies include this in their lease agreements — but not all do, so verify it rather than assume it.

Loading and Unloading Coverage

Damage can happen while a unit is being hooked up, decked, or unloaded. This coverage pays for those losses.

Earned Freight

If an accident or miscommunication keeps a delivery from arriving on time, earned freight coverage reimburses you for the lost income.

Debris Removal

After an accident, this covers the cost of cleaning up and removing the vehicle and debris from the scene.

Combined Deductible

A combined deductible merges your coverages so that after an accident you pay a single deductible instead of one per coverage — simpler and often cheaper.

How Much Does Driveaway Insurance Cost?

Driveaway insurance cost depends on several factors:

• Your location
• Your years of driving experience
• Your radius of operation (local vs. long-distance)
• Your deductible
• Your policy limit
• The type and value of vehicles you move

As a rough guide, owner-operators running under their own authority can expect annual premiums in the range of $9,000–$12,000 or more, especially for CDL-required work. If you’re simply driving vehicles from point A to point B without operating a big rig, costs can be significantly lower.

The single biggest lever on your rate is your driving record and experience — clean records and more years behind the wheel bring premiums down over time. Because carriers price driveaway risk differently, quotes for the same operation can vary widely, which is why it pays to compare more than one.at an expense, but it’s a necessary one to protect against risks and the financial future of your business.

How to Get the Right Driveaway Policy for Less

Not every agency that writes tractor-trailer insurance will cover driveaway operations — it’s a specialized line, and the wrong policy can leave the non-owned vehicle exposure uncovered. The most reliable way to get the right coverage at a fair price is to compare quotes from carriers that understand driveaway work.

We shop multiple carriers for you and connect you with agents who write driveaway policies, so you can compare real quotes and pick the one that fits your operation.

Frequently Asked Questions

What is driveaway insurance? Driveaway insurance is commercial auto coverage for drivers who deliver vehicles by driving them, rather than hauling freight on a trailer. It includes primary liability to meet FMCSA requirements, plus coverage for the non-owned vehicle you’re transporting and related risks.

How much is driveaway insurance? For owner-operators running under their own authority, driveaway insurance typically runs $9,000–$12,000 or more per year, depending on your experience, location, radius, deductible, and the vehicles you move. Drivers who simply move vehicles point-to-point without operating a big rig often pay less. Comparing multiple carriers is the best way to find your actual rate.

What is the FMCSA minimum insurance for driveaway drivers? The FMCSA requires a minimum of $750,000 in primary liability coverage to operate under your own authority. Many shippers and contracts require $1,000,000 or more. See our full breakdown of FMCSA minimum insurance requirements.

Do I need a CDL to be a driveaway driver? It depends on the vehicle. Moving a single vehicle under the CDL weight threshold may not require one, but decked or combination units over 26,001 lbs generally do, as does road-legal heavy machinery. Check the class of vehicle you’re moving.

Does driveaway insurance cover the vehicle I’m driving? Not automatically. The vehicle you deliver is in your care, custody, and control and isn’t covered by your liability policy or, in many cases, a standard policy. You need coverage that specifically protects the non-owned unit — confirm it in writing before accepting a load.

Is driveaway the same as towaway? They’re related. In a driveaway the vehicle is driven under its own power; in a towaway it’s towed. The FMCSA groups both under “driveaway-towaway” operations, and some jobs combine the two.