State trucking associations and other trucking groups urge against a liability insurance hike.
A coalition of more than 60 trucking-related associations penned a letter this week to the House Committee on Transportation and Infrastructure to discourage members from voting for an increase in the existing minimum liability insurance coverage required for trucking companies.
The coalition of 62 associations includes more than 20 state trucking associations, several agriculture associations, and more.
“An increase in insurance requirements is wholly unnecessary, would do nothing to improve highway safety, and would have a severe negative impact on truckers, farmers, and manufacturers by significantly increasing their operational costs,” the letter states.
The letter also notes that federal research has demonstrated that an increase is not necessary, citing a study by the John A. Volpe National Transportation Systems Center in 2014, which explained, “The vast majority of CMV-caused crashes have relatively small cost consequences, and the costs are easily covered with the limits of mandatory liability insurance. A small share exceeds the mandatory minimum but is often covered by other insurance or assets.”
A liability insurance increase is one of the items some believe could be explored further under the Biden Administration after an exploratory Federal Motor Carrier Safety Administration rule to evaluate the current $750,000 minimum was tabled in 2017.
Original article provided by: https://www.ccjdigital.com/business/article/15042844/trucking-groups-ask-house-to-reject-higher-insurance-minimums
