A new bill aiming to increase the minimum liability insurance for motor carriers to $5 million has gained additional support. On September 6, Rep. Kevin Mullin, a Democrat from California, joined as a co-sponsor of the Fair Compensation for Truck Crash Victims Act. Currently, the minimum insurance requirement stands at $750,000, meaning this bill would raise it by 566%.
The latest version of the bill was introduced by Rep. Jesus “Chuy” Garcia, a Democrat from Illinois, last December. Garcia emphasized the need for this legislation by stating, “For too long, truck crash victims and their families have been burdened by tremendous emotional and financial consequences, facing a mountain of medical debt and shattered lives. The Fair Compensation for Truck Crash Victims Act is about justice, responsibility, and protecting our communities. It’s time to ensure that trucking companies have adequate insurance to cover the true cost of their actions and prevent families from being financially destroyed by crashes they had no control over.”
With Mullin’s support, the bill now has seven co-sponsors.
Opposition to The Bill
The Owner-Operator Independent Drivers Association (OOIDA) has voiced strong opposition to the bill, arguing that the proposed increase is unnecessary and could drive many trucking companies out of business. OOIDA pointed out that a recent study found the current minimum insurance level adequately covers damages in 99.4% of cases.
“This increase would cause insurance premiums to skyrocket and would be absolutely devastating for small businesses,” said OOIDA Executive Vice President Lewie Pugh in testimony submitted to the House Highways and Transit Subcommittee in July. He added, “It’s unlikely that small carriers could afford this increase, and many would be forced out of business.
Some truckers may cut back on maintenance and repair costs, which jeopardizes the safety of their operations.”
Rep. Mike Collins, a Republican from Georgia who owns a trucking company, has also opposed the increase. In an interview with Land Line Now, Collins highlighted that 98% of trucking companies operate with 10 trucks or fewer. “They’re not even valued at $5 million,” he stated. “There’s no way that 98% of trucking companies can afford a $5 million policy. If you were to implement that law and create a $5 million minimum liability insurance, you are going to destroy the trucking industry.”
Opponents of the bill also argue that the increase would primarily benefit trial lawyers, who could leverage the higher liability limits to secure larger settlements.
Previous Attempts to Raise Insurance Minimums
This is not the first time Rep. Garcia has sought to raise the minimum insurance requirement for motor carriers. He previously attempted to increase the minimum to $4.9 million in 2019 and to $5 million in 2021.
Both efforts failed to gain traction in the House, receiving only six and eight co-sponsors, respectively. Rep. Matt Cartwright, a Democrat from Pennsylvania, has also made multiple attempts to raise the minimum insurance requirement since 2013.
Although past attempts have not succeeded, there is concern that a minimum insurance increase could be included in future transportation legislation. A provision to raise the minimum insurance to $2 million was included in the House version of the 2021 highway bill but did not make it into the Senate version, which ultimately became law.
OOIDA encourages its members to visit FightingForTruckers.com, where they can find their representatives and urge them to oppose Garcia’s bill.
