In 1980, Congress set a minimum insurance requirement of $750,000 for motor carriers during the deregulation of the trucking industry, a figure that has remained unchanged. A new bill in the House of Representatives aims to raise this minimum to $5 million.
The Fair Compensation for Truck Crash Victims Act seeks to implement two significant changes:
- Raising the minimum insurance requirement for interstate motor carriers from $750,000 to $5 million. The sponsors argue that this updated figure reflects inflation and current medical costs.
- Indexing the new minimum insurance requirement to inflation. This provision is designed to ensure that the financial protection available for crash victims keeps pace with rising healthcare costs over time.
According to a press release from Rep. Garcia’s office, the cost of medical care has risen significantly since the 1980 benchmark, and the increasing size and weight of trucks have also led to more frequent and fatal crashes.
As Congress deliberates additional road safety measures, the bill’s sponsors maintain that motor carriers should at least be mandated to carry insurance that adequately protects crash victims.
The legislation has gained support from several co-sponsors, including Rep. Steve Cohen of Tennessee, Reps. John Garamendi and Jared Huffman from California, and Rep. Hank Johnson from Georgia.
Advocacy for Higher Insurance Limits
Kate Brown, a board member with the Institute for Safer Trucking (IST), advocates for truck crash victims and understands the financial burdens firsthand, having experienced her son’s severe injuries from a crash in 2005. The trucking company held only a $750,000 insurance policy.
“After my son was injured, we experienced the financial devastation that follows such incidents. Even with assistance, the medical expenses were staggering. It’s essential that our laws reflect the severe impacts of these accidents and guarantee fair compensation for victims,” Brown stated in a press release.
Other organizations supporting the bill include:
- Citizens for Reliable and Safe Highways (CRASH)
- Truck Safety Coalition
- Institute for Safer Trucking
- American Association for Justice
- Parents Against Tired Truckers
- Road Safe America
Research Insights
This is not the first legislative effort to increase the minimum insurance amount. The Moving Ahead for Progress in the 21st Century Act, enacted in 2012, mandated that the Department of Transportation provide updates to Congress every four years on this issue.
Earlier this year, the Federal Motor Carrier Safety Administration (FMCSA) submitted its latest findings to Congress, indicating that crash costs have significantly increased since the minimums were established in the 1980s. This has created a gap between current insurance minimums and the actual costs incurred in serious accidents.
However, the FMCSA admitted it lacks adequate data for a thorough review of existing requirements. They highlighted that ongoing challenges hinder comprehensive evaluations of insurance levels. Most current reports and data sources are infrequently updated, leaving FMCSA with limited information to inform its assessments.
Moreover, valuable data remain inaccessible; many cases are settled under confidentiality agreements, and significant insurance data is proprietary. Consequently, FMCSA’s ability to conduct a comprehensive analysis of the financial responsibility of motor carriers is restricted.
