A recent proposal to increase commercial truck insurance has been withdrawn. Small truckers across the country are rejoicing, as the increase in insurance levels would have gone from $750,000 to $4 million!
This would have created a huge hardship on small truckers, as premiums for such limits would have skyrocketed. The insurance companies battled hard against these increases, because they were worried about losing business with higher premiums.
It’s been 3 years since the FMCSA first announced that it was considering an increase for freight forwarders, brokers and motor carriers financial responsibility. They have now announced that due to insufficient data or information, they will not be moving forward, at least for now.
The current standard of $750,000 was set in 1985 for general freight. FMCSA can, however, increase minimum levels above those that Congress sets.
The ANPRM questioned the public on matters such as premium rates, compensation and impacts of increasing the minimum level or financial responsibility. It was the responses to these inquiries that determined there was not enough data at this time to continue.
Let’s hope it stays that way for a while. Keep your chin up small truckers, you’re safe for the moment!
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