A bill that would increase motor carriers’ minimum liability insurance to $5 million would “destroy the trucking industry,” a member of Congress said.
Last December, Rep. Jesus “Chuy” Garcia, D-Ill., introduced the Fair Compensation for Truck Crash Victims Act. The bill would inflate existing minimum insurance levels from $750,000 all the way to $5 million – a 566% increase.
Rep. Mike Collins, R-Ga., who owns a family trucking business, told Land Line Now that HR6884 would be devastating to small-business trucking companies and the nation’s consumers.
Collins said it must be kept in mind that 98% of trucking companies have 10 trucks or fewer.
“They’re not even valued at $5 million,” he said. “There’s no way that 98% of trucking companies can afford a $5 million policy … If you were to implement that law and create a $5 million minimum liability insurance, you are going to destroy the trucking industry.”
The trucking companies that can withstand the increase will be forced to increase prices, Collins said.
“It’s the same as with anything where the government gets involved,” he added. “Somebody is going to pay for whatever happens, and that’s going to be passed on to the consumer. Trucking rates are going to go through the roof, and consumer prices are just going to skyrocket.”
OOIDA opposes minimum insurance increase
The Owner-Operator Independent Drivers Association also is pushing back against Garcia’s bill.
In January, OOIDA sent a Call to Action email to its approximately 150,000 members.
“There is absolutely no data to demonstrate that raising minimums would improve safety in any way,” OOIDA wrote. “And research shows that existing minimums cover costs in over 99% of cases.”
OOIDA believes the bill is motivated by trial lawyers, pointing out that motor carriers already carry $1 million in insurance. In addition, the most recent study into the issue found that the current minimum insurance level covered damages in 99.4% of cases.
So far, HR6884 hasn’t built much momentum. The bill has only five co-sponsors.
However, OOIDA is asking its members to still reach out to lawmakers in opposition. Although the standalone bill hasn’t been successful, it is possible Garcia could try to include it in a larger highway package at some point. In fact, he nearly pulled that off in 2020 and 2021.
To stand up against attempts to increase motor carriers’ minimum insurance levels, go to FightingForTruckers.com. LL
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