Trucking Group Urges Action As Anxiety Grows Over Proposal to Hike Insurance Costs
Washington D.C. – A trucking group is urging its members to take action against a new push by some U.S. lawmakers to massively hike insurance costs for truckers.
Right now, Congress is preparing legislation expected to be a five-year funding reauthorization for federal highway programs, known as the Highway Bill.
The Owner Operator Independent Driver’s Association (OOIDA) continues to sound the alarm about seven “anti-trucking” measures likely to be included in the legislation.
Click HERE to see the full list of seven.
Among the provisions OOIDA is most concerned about is a proposal to raise motor carriers’ insurance minimum requirement from $750,000 to $4 million or more.
The small business trucking group issued a call to members this week urging them to contact their representative in the U.S. House and senators and voice their opposition.
Fighting alongside OOIDA is a diverse coalition of more than 60 other concerned trade groups including the National Association of Small Trucking Companies and almost two dozen State trucking associations.
This week, the coalition sent letters to members of the U.S. House of Representatives’ Blue Dog Coalition and Problem Solvers Caucus explaining, “An increase in insurance requirements is wholly unnecessary, would do nothing to improve highway safety and would have a severe negative impact on our members by significantly increasing their operational costs.”
Further, the coalition argues, “Federal research indicates the current minimum insurance requirement of $750,000 covers damages in 99.4 percent of crashes involving commercial motor vehicles. When considering the industry norm of carrying $1 million in coverage, the percentage of crashes covered increases to 99.97 percent.”
Moreover, the coalition expressed frustration such a hike is even being considered.
“It is difficult to think of any other policy that addresses over 99 percent of cases and would be considered a failure in need of fixing,” the letters explain.
OOIDA and other groups have long contended imposing such an insurance hike on trucking companies is not about improving safety at all, rather it’s really an effort to do a big political favor for trial lawyers, which are a major constituency to Democrats.
Insiders on Capitol Hill continue to tell Transportation Nation Network to expect an insurance hike to be included in the Highway Bill, which will almost assuredly sail through the Democratically-controlled U.S. House.
The major fight will be in the narrowly divided Senate.
Stay with TransportationNation.com for the latest as this political battle unfolds.