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FMCSA Wants Comments on Insurance Proposal

November 26, 2014

By Oliver Patton

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The Federal Motor Carrier Safety Administration is looking for comments on a plan to raise insurance minimums for carriers and establish insurance requirements for brokers and freight forwarders.

The long-awaited notice is scheduled for publication in the Federal Register this week. The agency said it will publish an insurance proposal for private carriers separately.

The agency is acting on instructions from Congress to update insurance requirements that have been in place for almost 30 years.

In 1985, the Department of Transportation (FMCSA did not exist then) set minimums of $750,000 for general freight, $5 million for the most dangerous hazmats and $1 million for other hazmats.

In 2012, Congress considered telling the agency to raise the general freight minimum to $1 million but ultimately told the agency to prepare an analysis that could become the basis for a new standard.

In its analysis the agency found that the minimums need to be reevaluated due to increasing medical costs and changing statistical life estimates. It is considering a range of numbers but one would be to peg the minimums to the Consumer Price Index.

If that happens, the general freight requirement would jump to $1.6 million, dangerous hazmats would go to $10.8 million and other hazmats would go to $2.2 million.

In this week’s notice the agency says the analysis provides preliminary support for raising the minimums but it wants more information.

The agency has dozens of specific questions. Among them: what should the minimums be, what would an increase do to premium costs, how often do current minimums cover actual costs of a crash, and how would an increase in the minimums affect large and small carriers.

Comments will be due in February.

Comments

  1. 1. john k [ November 26, 2014 @ 01:00PM ]

    no need for it how about the small guy's with one truck trying to make a living,if it wasn't for truck's you would have nothing ,truck's run america

  2. 2. Don Clute [ November 26, 2014 @ 02:52PM ]

    I'd be curious to see how many times the existing amount of the full million is even used in the case of an accident/incident. If congress has proof that there are more times than none of this occurrence then by all means let's put some standards in place that protect companies as well as individuals. But if there is no numbers, no facts, no evidence to support their theory. I believe there is absolutely no way that there should be in an increase in insurance. It will not affect the big companies but us small companies just barely getting by with high insurance rates and high tax rates in a business that is already heavily over regulated....welp I guess the big guys will win. Just be prepared as consumers to pay whatever prices these companies dictate cause it sure as hell will be a monopoly of sorts.

  3. 3. Jim R [ November 26, 2014 @ 03:08PM ]

    If there are going to set higher insurance ,hoe about making the big trucking co have and pay for it just like the O/O have to this self insurance
    crap is not fair and it should be based on past performance I have no clams and should pay based on that and the ones with clams should pay more .

  4. 4. Daron Rudd [ November 26, 2014 @ 10:01PM ]

    I have been in the trucking business for 30 years. No claims, no at fault wrecks. If the minimum insurance goes up, I will get out of trucking. If you want to raise our minimums, then lets change the rules for the big box companies also. Make them carry the same coverage as us o/o per truck, and eliminate the insurance bond that they have. That would stop this idea immediately wouldn't it.. When good carriers quit, there will be more problems with safety the FMCSA will want to see, more insurance fraud also. The big companies that would like to see the small companies fail, cannot do all the trucking them selves.

  5. 5. David [ November 27, 2014 @ 12:58PM ]

    June 10, 2014 the US HOUSE of Representatives past a law taking the Authority to Increase the Minimum Liability Insurance AWAY from the FMCSA. That law being past lead Anne Ferro (the Administrator at the time for the FMCSA) She made comments on the blog she kept for the FMCSA showing she was "Bias" toward Trucking companies and Truck Drivers. She resigned August 21, 2014.
    Now I read this out right misrepresentation that "Congress" wants this done! NOT TRUE!
    I parked my truck in May when Anne made it known "she" was going to purpose a new minimum Liability insurance of $4,422,000.00 ($4,422 Million). Then they say had the minimum kept up with inflation it should be $1.62 Million. My response to this is simple. IF FREIGHT RATES, DRIVERS WAGES kept up with inflation WE WOULDN'T LOSE OUR SMALLER COMPANIES. So if they only needed $1.62 million, why was the FMCSA going to go for over 4 Million to begin with. Do you smell a rat?

    Everyone needs to remember there are more small Trucking companies than larger companies. This means the Driver Shortage we currently have will be much worse. No large company could hire all the Drivers that will be put out of work!

    I have almost 36 years OTR, zero claims, only late twice in this period that was my fault. My company has a 100% On Time, Zero Defect, Delivery, Pickup and not one freight claim.
    But my rates increase each and every year, due to others having the problems.

    I love what I do, I am good at what I do. More important I know what is going on. The only people that will benefit is "Trial Lawyers".

    The ATA even says that Trucks are involved in only 2% of all US HWY ACCIDENTS, of that percentage less than 1% of the 2% (.001%) are charged to the Truck Driver or is a contributing factor. Less than 1% of all accidents even rise above the current $750,000 Minimum Liability and these are all facts.
    In 2013 there were 3,329 Traffic Fatalities in Texas alone. Across the US a total of about 40,000 traffic deaths. Of that 17,000 were killed by Drunk Drivers! Death by trucks involved was just over 4,000 but remember Truckers were not at fault the largest percentage of the 4,000. I would love to see the total Deaths at ZERO, BUT that will not happen. The public is their own worse drivers and the cause of well over 30,000 deaths each year. But no one talks about this WHY?

    During the first 2 quarters of 2015, we are looking at 8 to 10% INCREASES for Frieght Rates Due to the Driver SHORTAGE we are experiencing currently.

    Put more small companies out of business and we are all going to see our economy go down because of the shortages and the added expenses for Driver Pay, Higher Insurance costs.

    Every family in America will be hurt by this, mine included. I have 4 grown kids with 5 grandkids. I don't want this to hurt them or my friends.

    You must READ MORE and Learn what is going on. Don't use one source use many as I do myself. I don't come up with this info out of thin air. I read a lot. Again I love what I do, even with these over Burdensome Rules and regulations. We need to take a stand, and Unite and stick together.
    Thank you all for your time,
    David

  6. 6. Dave [ November 27, 2014 @ 04:18PM ]

    It is just another foolish, wasteful, consideration. The big companies might be okay, small cos. useless because my experience is that shipper ask for certificate sometimes and see first hand what you carry for cargo and either okay or not, a lot of shippers also will cover what truck does not, as far as liability is concerned, set some new judicial laws in this land, we have a somewhat corrupt system and this includes DOJ, I wonder if FMCSA would willingly reveal who is behind this and reveal who all of the lobbyist are ? what we are all seeing in America right now is very unreal, but be assured of this the American people are very independent people, mostly moderate people until pushed on too far, so too all pushing for foolish laws without considering the consequences, get a real life and a job instead of sucking off of people that do a honest days work.

  7. 7. Swartz [ December 01, 2014 @ 06:39AM ]

    These idiots don't care about anything but making more money for themselves. So they go after the little guys to get it. I don't understand why insurance rates should go up even more. Maybe if there were some laws to protect the trucking industry instead of laws to protect crooks. things like this wouldn't be such an issue. I think what bothers me me more then anything is the fact that the people coming up with these rules probably have absolutely no clue what it's like to be in the trucking business..... Take a ride in a truck for a month people! Maybe that would make you wanna work with us instead of constantly looking for ways to put us outta business.

  8. 8. Brett [ December 01, 2014 @ 06:41AM ]

    Its my understanding that about 74 percent of truck crashes are caused by a car, which only has a fraction of the insurance we do. Its also my understanding less than one percent of truck crashes exceed 750,000 dollar's, why are truckers talking about this, oh thats right most truckers dont vote. This sounds like a auto insurance problem. www. Fightingfortruckers.com

  9. 9. gaspare mutolo [ December 01, 2014 @ 06:57AM ]

    I THINK THAT INSUANCE LIMITS SHOULD BE RAISED ALSO AUTO SHOULD BE INCREASED. AND LETS NOT FORGET TRUCKING RATES ALSO NEED TO BE INCREASED ABOUT 100% JUST TO KEED UP WITH INFLATION. YOU ARE REGULATING EVERYTHING BUT RATES. I BET IF RATES GO UP SAFTY WILL ALSO BE BETTER. HEY LETS GET A COMMITTEE TO STUDY THAT ONE.

  10. 10. steve [ December 01, 2014 @ 07:24AM ]

    As long as we let the gov. Do it Thay will Thay r rich Thay do not care a bout poor or working class people. the rich and sorry people who are at the top while we carry them

  11. 11. gil [ December 01, 2014 @ 08:56AM ]

    IT IS SO SAD THAT NOT ONE PERSON TRYING TO INCREASE INSURANCE RATES, NOT ONE PERSON WITH CARB COMPLIANCE HAS EVER DROVE A TRUCK LET ALONE KNOW WHAT IT TAKES TO GET TH JOB DONE. YET THEY SIT IN AN OFFICE SOME WHERE WITH THEIR COFFEE IN HAND AND PLOT AND SCHEME EVERY DAY HOW THEY CAN MAKE MORE MONEY WITH THE TRUCKER. DOES ANY ONE , INCLUDING ANNE FERRO REALLY CARE HOW MANY PEOPL DIE ON THE ROAD? HELL NO... AS LONG AS THERE ARE VEHICLES ON THE ROAD, PEOPLE ARE GONNA DIE. AND GOES.WITH EVERY THING ELSE IN LIFE. BUT YET ALL OF THESE IDIOTS REAP THE REWARDS OF WHAT THE TRUCK.DRIVER DOES. WHICH ONE OF THOSE IDIOTS HAVE DISCUSSED RATES? EVERY THING GOES UP EXCEPT THE MONEY WE MAKE. BUT I TELL YOU THIS, PLEASE DONT TAKE MY WORD FOR IT... GO OUT THERE BUY A TRUCK GET YOUR OWN AUTHORITY AND HIT THE ROAD, LETS SEE HOW LONG YOU LAST...

  12. 12. JC [ December 01, 2014 @ 09:50AM ]

    Just another scam to put more small independent operators out of business. This administration has the intent of destroying small business and this may very well be the final blow to all small trucking company's. This being said, the only way to compensate for the drastic increase in insurance costs will be to increase the freight rates accordingly. Hence, causing more inflation and weakening the already unstable economy. Just another agenda of this administration to bring down corporate America.

  13. 13. AMAR [ December 01, 2014 @ 10:14AM ]

    IF TH INSURANCEE RATE INCREASES WHICH IS ALREADY INCREASED IN SOME CASES. HOW ABOUT THE FRIEGHT RATE WHY FMCA IS NOT TALKING ABOUT THAT.

  14. 14. david [ December 01, 2014 @ 12:39PM ]

    how about find out who really got this started ,see what stake they have in trucking. This is not a game, trucking is about the only thing left that the government hasn't screwed up but they seem hell bent on doing just that. It's hard enough out here to make a living, without more B.S. being thrown at us .

  15. 15. Jim candler [ December 01, 2014 @ 04:45PM ]

    Anything that comes into my life was hauled by a truck.. Baby food to casket,, farmers are subsidized .immigrants are subsidized ...when's our turn..can anybody spell STRIKE

  16. 16. Larry [ December 01, 2014 @ 05:53PM ]

    I do believe all auto and truck insurance minnium should be raised.
    Auto insurance minniums are way to low to cover the damages in most accidents. Since auto's cause about 85% of the accidents with trucks they should carry enough liability insurance to cover the cost of a truck and trailer. Whether it's a $75,000 auto or a $250,000 T&T it should be covered.
    The ambulance chasers has caused the truck insurance rates to sky rocket. The first thing that happens after an accident, they check the limits on the trucks insurance.
    Changes need to be made, with autos and trucks.

  17. 17. Steve [ December 01, 2014 @ 09:51PM ]

    It's just another tax increase if you"ll just look a little closer.... The Comprehensive Annual Financial Reports show the Govt. owns 90% of the stock in the insurance industry,90% investment in Hospitals ,75% in the Oil Co. Does this ring any bells for you ? It should. Those things I've listed here are already our biggest expenses.

  18. 18. Thomas Duncan [ December 02, 2014 @ 05:50AM ]

    Thanks a lot you stupid asses.You have already choked the life out of my business and crippled all small business in this country,You people live in another world and I can not wait until the anger gets to the point of an uprising,NOW DO YOU WANT TO ASK ME HOW I FELL?

  19. 19. Paul [ December 02, 2014 @ 09:31AM ]

    Once again,Here comes big brother or shall I say comrade to Take More From small trucking and small business bottom line profits.When these people realize they have killed the goose that laid the golden egg,it will be to late.The administrations of past and current have developed many commities and government departments that are unnecessary.All in the name of safety,while employing their buddies and taxing normal everyday people into poverty.This has done nothing to help anybody except to help the rich get richer.Common sense has gone by the wayside.
    Insurance companies are one of the largest lobbies in D.C. Think about it,how pockets have been lined over the years to get were they are today.Until the people become WE THE PEOPLE again all people are screwed into paying whatever the richer 5% feel they can or want to take.I agree with another Commentor from above.Unfortunatly it is time for the people to take back our rights and get back to basics.As a small business owner I am over taxed with no assistance.But let a person of color or foreign origin come to the U.S.A. I'm paying their way also.What to all Men are created equal,let them pay their own way and maybe we wouldn't be so unfairly taxed.I'm not asking for anything that is too much just let's try to be fair to the people that actually make this country run and stop paying for all dead beats that want to live off the sweat of others brows.Thank You for Your Time

  20. 20. Elmer Elless [ December 22, 2014 @ 02:06PM ]

    how about jurys and judges truck insurance or any insurance is only to put a person in the same position as before the incident not be the lottery of life

 

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