The history of insurance in the United States mirrors the history of the nation. Insurance has attended dramatic population growth, the emergence of commerce, and the elevation of finance. Insurance has helped fuel the nation’s prosperity. It would not be a stretch to say that without insurance, businesses cannot be established, buildings cannot be built, and planes cannot fly.
In 1980, The federal law on commercial truck insurance requirements was passed by the U.S. Congress which set the mandatory minimum limits for truck liability insurance at $750,000 and it has not been adjusted since. The amount of $750,000 is a single limit policy that must then be divided among multiple plaintiffs, which resulted in exceeding the amount to $1 Million and most of the owner/Broker requires $1Million Auto Liability.
The current bill, INVEST in America Act, to increase the insurance requirement had the support from the trucking industry, however, a new Provision called Garcia Amendment 62 could affect the already struggling carriers and most likely force a lot of small carriers out of business. If the bill passes, the minimum insurance for commercial motor vehicles will increase to $2 million from $750,00.
The benefit of having higher insurance coverage is that it will protect the carrier and the parties involved in an accident and the disadvantage of the higher premium, it can affect carriers with an unsatisfactory SAFER score. The bill will be up for a debate on June 30th on the House floor, and if it passes, the increased Insurance cost will persuade already struggling carrier to cease business.