8 Dec 16

Liability insurance for carriers was back in the news this month. The FMCSA finally published an Advance Notice of Proposed Rulemaking (ANPR), and it recommends raising the minimum amount of liability insurance for carriers. The ANPR doesn’t say how much the new minimum will be, though. Before the FMCSA makes that decision, you can give feedback during the public comment period, which ends Feb. 26.

The notice includes 26 questions, asking everything from how much you’re currently paying in insurance premiums, how much an increase would affect your business, and how an increase might affect small carriers versus big carriers. Read the full ANPR here.

Many large carriers meet the minimum requirements of financial responsibility by posting bonds, letters of credit, or some other type of self-insurance. For small carriers and owner-operators, an increase could mean higher insurance premiums. The current minimum of $750,000 for general freight, $1 million for oil and some hazmat, and $5 million for certain hazmat classifications has been in place since 1985, and the FMCSA has said that the minimum would be $1.6 million for general freight today if it had kept up with inflation. Carriers who commented on our last story about carrier insurance said they pay between $7,500 and $9,000 a year per truck for insurance covering $1 million in liability. Submit your comment and answer the FMCSA questions here.

Photo from Wikimedia Commons

Comments (8) -

shelton barbee
shelton barbee

Some lawyer's just looking for a bigger pay day. We paying 10,000 a year now

Reply

If I read it correctly it says FMCSA, Federal Motor Carrier SAFETY Administration, no where does it say insurance. FMCSA needs to mind their business and stop trying to justify their stupid salaries. The PA who started this is just trying drum up more business for his families law firm. Only about 1% of accidents exceed the current requirements.

Reply

Terrence Hardy
Terrence Hardy

I disagree. Why should we have to pay more. Were not the one involved in most of the accident.  That's those company driver's who just came outta school.  We have to go through a lot to get out new entry insurance.  Its seems as if the little people hurting while the big people don't suffer. Most big companies are self insured. Look at the big picture

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vinton a fray
vinton a fray

as of right now we are paying 10k per unit. If there any increase  we would have to closed our doors. this very bad for small carriers.

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Mine a little over  $9000 for 1 truck and. Three trailers if you ask me I think their against trucks all together. They trying to force us to quit.most younger drivers don't know any better.And I probably will quit.

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i do not think that the insurance should be changed small carrier pay enough, if it is changed it should be for large carrier only

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Clay Harrell
Clay Harrell

If they raise the rates they should change the law and force everybody to buy insurance on the open market, that would help level the playing field and bring the rates down for everyone. The large companies would be paying through the nose because they are the majority of the accidents. The owner operators don't crash because they know they are only one crash away from being out of business.

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John Douglas
John Douglas

My take, we carry $1M currently in liability.  If we are involved in accident we can be sure of getting sued for $1 million.  If the limit is raised to, say $2 million.  We can all rest assured that we are now going to be sued for the full $2M for the same event.  Nothing will be gained except the cost of insurance goes up and the standard law suit amount will also go up.

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