There is no denying that the rate of trucking insurance has skyrocketed over the years. Despite these increases, many insurers are experiencing huge losses. It shows that the insurance industry, particularly associated to transportation, continue to face the challenging time.
The latest INSURANCE act HR.2687 is an attempt to increase the minimum insurance requirements for all trucking companies. Presented by Chuy Gracia – U.S. Representative, the legislation is applicable to all commercial motor vehicles.
Insurance legislation aims to protect the families involved in truck crashes from financial devastation. It has stirred a debate among truckers.
If you belong to the trucking industry, learning about how the new INSURANCE act HR.2687 will impact you.
What is INSURANCE act HR.2687
Chuy Gracia, the renowned representative for Illinois’s 4th district, introduced the Insurance Act HR.2687 on April 20.
The legislation is to increase the minimum insurance amount required for all commercial vehicles, including trucks. It would increase the insurance amount from $750,000 to no less than $5 million. It also directs the Transportation Secretary to adjust the sum for medical-cost inflation in five years.
Purpose Behind Reintroducing Insurance Act
According to Gracia, this increased insurance requirement is essential to reflect the spiking costs of medical care. The goal of the legislation bill is to save families from the long-term financial debt they often have after a devastating injury.
Currently, there are thousands of people who have to suffer the burden of insurmountable medical-care costs from crashes with heavy vehicles. The Insurance Act can help people with this burden as it increases the insurance requirements for trucks by 556 percent.
Impact of Insurance Act H.R. 2687
Although the bill supports the safety of truck accident victims, it has faced a significant amount of retaliation from small trucking companies.
According to The OOIDA (Owner-Operator Independent Drivers Association), the Insurance Act is an attack on small trucking businesses. The increase in the insurance rate is not necessary as many carriers or truckers carry insurance that’s worth more than 1 million. Moreover, the current insurance level covers the damages adequately.
It is worth mentioning that the act was initially introduced in 2019 but didn’t create much steam until recent reintroduction. The current insurance bill has received the support of eight co-sponsors and democrats.
Since the release of the bill, OOIDA and other trucking companies have been working to prevent incorporating it in the highway bill. More than 60 organizations and businesses have become a part of this movement. They aim at ending the efforts of HR.2687 to increase the insurance requirements.
Like other commuters, many motor carriers need to carry some type of liability insurance that can cover the damages of catastrophic crashes. However, the Insurance Act would drastically increase the minimum FMCSA insurance requirements for truckers.