A new bill proposing a 566% increase in minimum liability insurance for motor carriers has re-entered Congress.
On December 22, Representative Jesus “Chuy” Garcia, a Democrat from Illinois, introduced the Fair Compensation for Truck Crash Victims Act, which aims to raise the required minimum insurance coverage from $750,000 to $5 million. Representative Hank Johnson, a Democrat from Georgia, joined Garcia in presenting this legislation.
This initiative, while under a different title, is not unprecedented. In previous Congressional sessions, Garcia attempted to elevate the minimum insurance amount to $4.9 million in 2019 and $5 million in 2021, but neither of those attempts gained enough support to pass in the House, each drawing only six and eight co-sponsors, respectively. Additionally, Representative Matt Cartwright, a Democrat from Pennsylvania, has made several attempts since 2013 to raise the minimum insurance requirement, starting with a proposal to increase it to $4.2 million.
Support for the Bill
Advocates of the legislation argue that it would safeguard families from the financial hardships that often result from serious truck accidents.
Opposition to the Bill
Critics argue that most motor carriers already maintain $1 million in coverage and point to a recent study indicating that the current minimum insurance level sufficiently covers damages in 99.4% of cases. In previous statements against Garcia’s 2021 proposal, the Owner-Operator Independent Drivers Association (OOIDA) claimed that the bill seems to cater to trial lawyers’ interests.
“Rep. Garcia collaborating with trial lawyer allies to drastically increase insurance levels is no surprise, as they typically take 30-40% of settlements against motor carriers,” OOIDA remarked. “This legislation would benefit trial lawyers at the expense of hardworking truckers and would not enhance highway safety.” The organization also expressed that such a bill could lead to a decrease in safety by pushing many reliable and experienced truck drivers out of the industry.
Previous Legislative Efforts
Attempts to significantly raise the minimum insurance for motor carriers in earlier sessions failed to gain traction. Nevertheless, the 2021 highway bill did include a proposal to increase the minimum coverage to $2 million, which faced opposition from Republican members of the House. Representative Mike Bost, a Republican from Illinois, denounced the proposed increase as punitive toward truckers, stating, “There is no credible evidence suggesting that this increase is necessary, especially not by 167%.”
Concerns from Trucking Representatives
Johnson, who supported the current insurance bill, emphasized the need for protecting those injured by truck accidents. In contrast, Representative Sam Graves, a Republican from Missouri, voiced concerns on behalf of truck drivers, arguing, “Many of these comments portray truckers as the enemy. This proposed increase will drive independent operators out of business, forcing a choice between supporting truck drivers or trial attorneys.” The House version of the highway bill retained the insurance provision, but it ultimately did not appear in the Senate’s version, which became law.
