Trucking news and briefs for Tuesday, June 29, 2021:
The letter calls the 167% increase to carriers’ minimum liability insurance requirement “harmful and unnecessary.”
“If the House allows this policy to remain in the highway bill, it would jeopardize countless small and family-owned businesses, as well as blue collar jobs,” the coalition wrote. “We therefore ask that you make Rep. [Mike] Bost’s amendment in order and allow all Representatives to consider this issue on its own merits.”
The coalition adds that while supporters of the insurance hike say the change is needed to account for inflation since the $750,000 minimum was implemented, the existing level covers jury awards in more than 99% of cases, according to research from the John A. Volpe National Transportation Systems Center.
“It may be true that inflation has increased some costs, but this congressionally-required research demonstrates that inflation has not outpaced the current minimum requirements,” the coalition said. “What studies haven’t shown is any improvement to safety associated with increasing insurance requirements. There is no reputable research indicating an increase of any amount would help reduce crash rates. Proposals to raise minimum liability coverage are nothing more than an opportunity for their most ardent supporters -- trial lawyers -- to receive higher payouts from settlements at the expense of American businesses.”
