New Insurance Minimums Discussed by the FMCSA

FMCSA

 

The minimum insurance requirements for trucking are bound to change soon, as the FMCSA has formed a team to review the current situation and reevaluate them. The new study is a response to MAP-21, the 2012 highway law.

The standard for general freight since 1985 has been $750,000. For dangerous hazmats, it’s set at $5 million, while other hazmats’ minimum is $1 million.

When MAP-21 was being prepared, Congress considered raising the trucking minimum to $1 million, but instead decided to order a study on whose basis to make such a decision. The increase is seen as necessary due to increased costs in cases of crashes. These are mainly connected with higher medical expenses.

Simple calculations show that if the minimums are pegged to medical or core CPI, they would still have to be significantly higher than they are now. Thus the FMCSA sees the need to take the initiative and reevaluate them.

Read the full article at Truckinginfo.


Eric is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog. He has held a range of different roles within the surety industry, from agent assistant to bond issuer, which gives him a unique insider perspective on surety related topics.

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