Overdrive

July 2017

Overdrive Magazine | Trucking Business News & Owner Operator Info

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20 | Overdrive July 2017 Logbook The Federal Motor Carrier Safety Administration last month officially withdrew a rulemaking intended to explore the pros and cons of increas- ing liability insurance minimums for motor carriers. The agency said a lack of data from key stakeholders led to the rule's withdrawal. FMCSA's original Advanced Notice of Proposed Rulemaking, published November 2014, sought input from carriers, brokers, shippers, insurers and others about how in- creasing the current $750,000 minimum would impact insurance premiums for carriers, their ability to obtain insurance and more. The agency said it received too little feedback, particularly from insurance companies, to proceed with a rulemaking. FMCSA was tasked by Congress in the 2012 MAP- 21 highway bill to study whether an increase was needed. Current limits were set in the mid-1980s, and groups have argued in recent years that the minimum is too low to cover the costs of today's crashes and medical expenses. An FMCSA study concluded that current cov- erage minimums hadn't kept up with inflation or rising liability costs. The American Trucking As- sociations and the Owner-Op- erator Independent Drivers Association both opposed the rulemaking, calling it unnec- essary since only 1 percent of crashes exceed $750,000 in liability claims and that most carriers carry liability insur- ance of $1 million or more. They also argued that an increase could drive premiums up and push smaller carriers out of business. – James Jaillet Up to $15,000 on your commercial vehicle for truck repairs, income taxes, insurance, IRP, tires, & more. 1 844 624 4744 9a – 6p EST M-F BigRigLending.com Hablamos Español You have no time for downtime. Big Rig Lending can secure you a fast loan approval – regardless of your credit history and with no vehicle inspection required – and you'll have funding in as little as 24 – 48 hours. We'll get you back on the road in no time. 17-BRL-0012 Overdrive Ad April May 2017.indd 1 3/30/17 5:00 PM Untitled-9 1 6/7/17 9:41 AM FMCSA nixes rule on liability insurance increase FMCSA contended prior to the rulemaking that current liability cover- age levels couldn't cover the costs of today's crashes.

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