Another legislator has backed a proposal aiming to raise the minimum liability insurance for motor carriers to $5 million.
On Friday, September 6, Representative Kevin Mullin, D-Calif., joined as a co-sponsor of the Fair Compensation for Truck Crash Victims Act. Currently, the minimum insurance requirement stands at $750,000. Under HR6884, trucking companies would see a staggering 566% increase in their minimum insurance obligations.
This revised version of the bill was introduced last December by Representative Jesus “Chuy” Garcia, D-Ill.
“For too long, truck crash victims and their families have been faced with significant emotional and financial hardships, leading to overwhelming medical bills and devastating life changes,” Garcia stated during the bill’s introduction. “The Fair Compensation for Truck Crash Victims Act aims to bring justice, accountability, and safeguard our communities. It’s crucial that trucking companies are equipped with sufficient insurance to address the actual costs of their actions and prevent financial ruin for families affected by crashes they didn’t cause.”
With Mullin’s support, Garcia’s initiative now has seven co-sponsors.
Opposition
The Owner-Operator Independent Drivers Association strongly opposes this legislation, arguing that the substantial increase is unnecessary and would jeopardize the survival of trucking companies.
According to OOIDA, a recent analysis revealed that the existing minimum insurance levels adequately compensate for damages in 99.4% of incidents.
“This proposed increase would lead to skyrocketing insurance premiums and could be incredibly damaging for small businesses,” OOIDA Executive Vice President Lewie Pugh noted in his testimony to the House Highways and Transit Subcommittee in July. “Many small carriers may not be able to sustain this hike and could face closure. To manage costs, some may even neglect maintenance, compromising safety.”
Representative Mike Collins, R-Ga., who runs a trucking company, has also voiced his disapproval of a minimum insurance rise. In an interview, he pointed out that 98% of trucking companies operate with 10 or fewer trucks, making a $5 million minimum insurance policy unfeasible.
Chances of Passage
This is not the first attempt by Garcia to boost motor carriers’ minimum insurance. In previous proposals, he sought to increase the minimum to $4.9 million in 2019 and $5 million in 2021, neither of which garnered enough support to advance in the House.
While earlier attempts did not lead to successful legislation, there is ongoing concern that a minimum insurance increase might resurface in future transportation bills. A provision raising the minimum to $2 million appeared in the House version of the 2021 highway bill but was absent in the Senate’s final version.
OOIDA encourages its members to visit FightingForTruckers.com, where they can locate their representatives and urge them to oppose Garcia’s legislation.
