FMCSA originally proposed this steep insurance premium increase back in 2014 Photo Sean KilcarrFleet Owner

FMCSA originally proposed this steep insurance premium increase back in 2014. (Photo: Sean Kilcarr/Fleet Owner)

Proposed truck insurance hike to be tossed

FMCSA plans to withdraw its proposal to raise minimum insurance requirements for motor carriers.

 today that the Federal Motor Carrier Safety Administration (FMCSA) plans to withdraw its proposal – made three years ago – to increase mandated levels of insurance coverage both freight and passenger motor carriers from $750,000 to $4 million.

[You can read the FMCSA's withdrawal notice by clicking here.]

In reaction to the news, the Owner-Operator Independent Drivers Association (OOIDA) pointed out that more than 99% of crash damages are covered under current financial requirements and that the increase – based by FMCSA on medical cost inflation - would place “significant financial burdens on motor carriers without any improvement to highway safety.”

“Such an increase would put small truckers out of business,” noted Mike Matousek, OOIDA’s director of government affairs, in a statement.

He added that the announced withdrawal is “significant” in that FMCSA usually just leaves a docket open if a proposal is no longer being advanced.

The agency also pointed out in its notice that, after reviewing all public comments, it had “insufficient data or information” to support moving forward with a rulemaking proposal to raise insurance minimums – at least at this time, FMCSA stressed.

 

.

 

 

TAGS: News
Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish