The last year has been tough for the trucking industry — several trucking companies have closed their doors. Many of the defunct carriers cited insurance premiums as one of the factors. A current bill to increase insurance requirements will put a strain on already struggling carriers and will likely force a lot of small carriers out of business.
The legislation is dubbed the Investing in a New Vision for the Environment and Surface Transportation in America (INVEST in America) Act and is a proposed infrastructure bill that would invest $500 billion into the nation’s highways and transportation systems over the next five years.
If the INVEST in America bill passes with the Garcia Amendment 62, minimum insurance for commercial motor vehicles would increase to $2 million — up from $750,000.
The amendment was introduced by Representatives Chuy Garcia, a Democrat from Illinois, and Matthew Cartwright, a Democrat from Pennsylvania.
The bill will be up for debate on the House floor on June 30.
Hundreds of trucking companies have ceased operations in the past two years. Truckers have pointed to increased insurance costs, softness in the freight market, government regulations, and difficulty in hiring qualified drivers as reasons for shuttering operations. Some of these companies include including Falcon Transport, LME, NEMF, and Celadon.
If this bill passes, the increased insurance costs could cause already struggling small carriers to go under.