4 Nov 11

By now you’ve probably heard that the FMCSA is looking into raising the minimum amount of insurance that carriers are required to have on their trucks. An Advanced Notice of Proposed Rulemaking was filed last month, with the FMCSA claiming that the current minimums of $750,000 for general freight and $1 million for hazardous materials were too low, but they haven’t made a decision on what the new minimum might be.

While we’ve seen the playing field level a bit this year for small carriers and owner-operators, those businesses would be the ones hit hardest by raising the minimum. The mega-carriers that support the increase – like the seven in the Trucking Alliance, a group lobbying to pass the law – are often self-insured and meet the minimum requirements by posting bonds, with letters of credit, or with some other financial means.

For small carriers, raising the minimum would most likely mean higher insurance premiums. The current minimums of $750,000 for general freight and $1 million for hazardous materials have been in place since 1985. The FMCSA says that the general freight minimum would be $1.6 million today had it kept up with inflation, but they also found that crash settlements exceeding the current minimums are rare.

Getloaded members: How much do you pay for the insurance policy on your trucks? Are you insured at or above the current minimum? Let us know in the comments.

Photo from Wikimedia Commons

Comments (4) -

Thank the TIA and Mr. Voltman this mess.  Just like he pushed the Broker Bond to $75,000 and put 9000 brokers out of business last year.  Nice way to eliminate competition from little guys and put up huge barriers for entrance to the business.  Join the AIPBA and fight this crap.

Reply

I'm so glad they raised bond on brokers. Im a small trucking company and had a broker go belly up owing us $28,000. They also owed 5 other trucking companies. I received $1800 as a settlement for the $28000 I had paid out to my drivers. This almost put me under. So If a broker can't afford $7500 a year with that almost being their only overhead, then they don't need to be in the business. This helped weed out the riffraff!

Reply

1
9,500 a year per truck for 1,000,000 and 100,000 cargo coverage if it went to the 4m like thay originally wanted that would be 38k per truck lets see swift or j b ar any of the others pay that and stay in business!

Reply

KAL'S Services
KAL'S Services

$15,000 a year for 2 trucks with $1,000,000 and $100,000.
Companies like JB and the S word are paid by the government for training and hiring purposes. JB said that if he could make 1 cent per mile profit, that would still lead to $1,000,000 per mile traveled for his fleet.
They will be here!

Reply

Pingbacks and trackbacks (1)+

Add comment

biuquote
  • Comment
  • Preview
Loading