OOIDA issues Call to Action over push to increase insurance minimums

By Land Line staff | 4/28/2014

A recent push to increase the minimum amount of liability insurance motor carriers must carry, followed by a report released by FMCSA and statements from the agency saying it will pursue a rulemaking, has prompted a Call to Action from OOIDA.

The Owner-Operator Independent Drivers Association is highly critical of the motivation behind pushes to increase the minimum required insurance motor carriers carry. The Association sees the motivations of large motor carriers, many self-insured, and of trial attorneys as economic and not related to safety.

Industry statistics show that less than 1 percent of all insurance claims exceed the current $750,000 minimum liability insurance required of motor carriers, OOIDA points out.

That’s a statistic that was reflected in a recent study released by the Federal Motor Carrier Safety Administration. Yet, that has not been enough to deter the agency from moving forward with a rulemaking “later this year,” according to some news reports.

The Association has issued a Call to Action to its members and encourages them to contact both of their senators and their member in the House of Representatives.

“When does it end from FMCSA? The study their report is based on acknowledges that well below 1 percent of accidents involving trucks result in injuries or property damage costs that exceed current insurance requirements, yet this is enough for FMCSA to move forward with a rulemaking that is going to increase the cost of doing business by thousands of dollars for every small-business trucking company in the country,” the Call to Action states.

OOIDA is urging members to contact their lawmakers – who are currently in the process of drafting a new highway bill – and encourage them to take action to rein in FMCSA.

To contact your lawmakers you can call the U.S. Capitol Switchboard at 202-224-3121 or click here to send an email.

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