Proposed Legislation to Increase Minimum Insurance for Motor Carriers
Democratic lawmakers in the U.S. House have introduced a bill aimed at raising the minimum insurance coverage for motor carriers from $750,000 to $5 million.
The proposed Fair Compensation for Truck Crash Victims Act will also adjust the new insurance minimum to keep pace with inflation.
Rep. Jesus “Chuy” García from Illinois and Rep. Derek Tran from California, the main sponsors of the bill, stated that updating these outdated insurance requirements would offer better financial protection for victims of truck accidents and their families, shielding them from debts caused by fatalities or severe injuries from such crashes. The legislation has received support from various organizations, including the Truck Safety Coalition, Parents Against Tired Truckers, and Road Safe America.
The current minimum requirement for interstate motor carriers was established in 1980. Similar proposals have been presented multiple times over recent years but have not progressed.
The bill is currently with the House Transportation & Infrastructure Committee. Chairman Rep. Sam Graves (R-Kan.), who has recently announced his retirement, indicated that the committee would soon start working on a draft for a surface transportation reauthorization bill. The existing highway funding law is set to expire on September 30.
A report from the Federal Motor Carrier Safety Administration (FMCSA) earlier this year noted that the actual costs of crashes surpass the existing minimum financial responsibility requirements and highlighted a significant gap between these minimums and the costs incurred in fatal or severe injury incidents. Nonetheless, the FMCSA admitted that its capacity to thoroughly evaluate motor carrier financial responsibility is constrained by factors such as outdated data and confidentiality from lawsuits under non-disclosure agreements.
