{"id":393,"date":"2014-12-02T06:34:25","date_gmt":"2014-12-02T06:34:25","guid":{"rendered":"http:\/\/quicktransportsolutions.com\/blog\/?p=393"},"modified":"2017-02-07T23:15:25","modified_gmt":"2017-02-07T23:15:25","slug":"fmcsa-asking-for-input-on-proposed-insurance-increase-rule","status":"publish","type":"post","link":"https:\/\/quicktransportsolutions.com\/blog\/fmcsa-asking-for-input-on-proposed-insurance-increase-rule\/","title":{"rendered":"FMCSA Asking for Input on Proposed Insurance Increase Rule"},"content":{"rendered":"

On November 26 the Federal Motor Carrier Safety Administration (FMCSA) announced that it is seeking input from the trucking industry regarding newly proposed rules to raise the liability insurance minimum.<\/p>\n

The Agency\u2019s Perspective<\/strong><\/p>\n

The current minimum of $750,000 was set in 1985 and does not \u201cadequately cover catastrophic crashes,\u201d the agency says. They claim that this is mainly the result of inflation and increased medical costs.<\/p>\n

In a report published in April the FMCSA stated that if the current insurance minimum had kept up with inflation, it would be $1.62 million today. When annual increases in medical costs are factored in, the agency says that carriers would be required to have a whopping $3.18 million in liability insurance.<\/p>\n

The agency\u2019s study came as a result of the MAP-21 highway funding act of 2012. Couched in the legislation was a law that required the FMCSA to study whether or not the current minimum is adequate and if not, what is.<\/p>\n

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Sponsored Links<\/p>\n

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In addition to their study, the FMCSA also points to a study by the Alliance for Driver Safety and Security that appeared to show that 42 percent of dollar settlements made by trucking companies come in above the $750,000 minimum insurance requirement. The study tracked 8,692 settlements from 2005 to 2011 and found that:<\/p>\n