House Nixes Increased Insurance Requirements

Small trucking companies rallied against the FMCSA’s attempt to raise financial insurance requirements — and the House heard them loud and clear.

Trucking insiders said that the increased insurance costs were based on the costs of medical inflation and that making trucking companies pay more insurance would not make highways safer. Increasing the cost of insurance would be yet another unfair burden on the trucking industry, they claim.

The House voted 175-248 to stop a provision from being added to the T-HUD bill (the annual Transportation, Housing and Urban Development spending bill) that would have used federal funds to enforce insurance increases for commercial carriers.

According to OOIDA’s Todd Spencer, “Congress never intended financial requirements to be tied to increases in medical inflation or to cover the worst-case crashes, and the legislative and regulatory history on that is clear.” OOIDA also pointed out that 99% of damages are already covered under the current requirements.

Source:
OOIDA