OOIDA slams effort to raise truck insurance levels

The Owner-Operator Independent Drivers Association (OOIDA) is coming down hard on the exploration by the Federal Motor Carrier Safety Administration (FMCSA) of whether minimum insurance requirements for trucking companies need to be raised.

“The agency’s decision to move forward with this rulemaking not only flies in the face of … the data on crash costs analyzed by the agency, which shows that more than 99% of truck-involved crashes are covered in the current requirements,” noted Todd Spencer, OOIDA’s executive VP, in a statement.

FMCSA is currently wrapping up the comment period on its advanced notice of proposed rulemaking regarding “higher financial responsibility requirements” for both freight and passenger carriers.  

OOIDA’s main concern is that raising insurance minimums could force small trucking firms out of business.

“Higher minimums will only increase the push for higher settlements no matter the real cost of the accident or the fault for the trucker,” Spencer stressed. “We are also concerned they would discourage motor carriers from increasing driver pay which is needed to attract and retain the safest drivers.”