The Federal Motor Carrier Safety Administration says it will soon take a close look at the minimum insurance requirements for trucking, the agency announced in a report to Congress.
According to Heavy Duty Trucking magazine, the agency said the current standards need to be reevaluated and has formed a team to draft a new rule.
The last adjustment in 1985 set the current standard of $750,000 for general freight, $5 million for the most dangerous hazmats and $1 million for other hazmats.
HDT reports this initiative arises from a study ordered by Congress in the 2012 highway law, MAP-21, in response to the increasing costs of crashes. Congress considered raising the insurance minimum for general freight from $750,000 to $1 million, but eventually decided to have the agency prepare an analysis that could become the basis for changes in the standard. Congress also ordered the agency to conduct a review every four years, going forward.
The issue is likely to resonate as Congress drafts the next highway bill. Rep. Matt Cartwright, D-Pa., has a bill that would raise the $750,000 minimum to $4,422,000 and adjust it annually based on the medical CPI.