Another lawmaker has expressed support for a bill that would increase a motor carrier’s minimum liability insurance to $5 million.

On Friday, Sept. 6, Rep. Kevin Mullin, D-Calif., became a co-sponsor of the Fair Compensation for Truck Crash Victims Act. The current minimum is $750,000. HR6884 would increase a trucking company’s minimum insurance requirement by 566%.

Rep. Jesus “Chuy” Garcia, D-Ill., introduced the latest version of this bill last December.

“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,” Garcia said when he introduced the bill. “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 the addition of Mullin’s signature, Garcia’s bill has seven co-sponsors.

Opposition

The Owner-Operator Independent Drivers Association strongly opposes the bill, saying that the dramatic increase is unnecessary and would put trucking companies out of business.

OOIDA has noted that the most recent study of the issue 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,” OOIDA Executive Vice President Lewie Pugh wrote in submitted testimony to the House Highways and Transit Subcommittee in July. “It’s unlikely that small carriers could afford this increase, and many would be forced out of business. As a way to afford this increase, some truckers may cut back on maintenance and repair costs, which jeopardizes the safety of their operations.”

Rep. Mike Collins, R-Ga., owns a trucking company and has been vocal in his opposition to a minimum insurance hike. In an interview with Land Line Now, Collins said it must be kept in mind that 98% of trucking companies have 10 trucks or fewer.

“They’re not even valued at $5 million,” Collins said. “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 also contend that the increase is nothing more than a payout to trial attorneys, who would use the large amount of liability to create more nuclear verdicts.

Chances of passage

This is not the first time Garcia has attempted to increase motor carriers’ minimum insurance. Under the previous name of the Insurance Act, Garcia attempted to increase the minimum amount to $4.9 million in 2019 and to $5 million in 2021. Neither of the standalone bills came close to passing the House, as they garnered only six and eight co-sponsors, respectively. Rep. Matt Cartwright, D-Pa., also tried to increase the minimum number several times, starting with a hike to $4.2 million in 2013.

Although none of those standalone bills came close to being signed into law, there is a concern that a minimum insurance hike could find its way into a future transportation package. The House version of the 2021 highway bill included a provision to raise the minimum insurance to $2 million.

The increase to $2 million remained in the House version of the highway bill. However, a minimum insurance increase never made it into the Senate version, which ultimately became law.

OOIDA encourages its members to go to FightingForTruckers.com. There, truckers can find their representatives and ask them to oppose Garcia’s bill. LL