OOIDA cheers FMCSA decision to drop proposed insurance hike

The Owner-Operator Independent Drivers Association announced success in helping to force the withdrawal of a Federal Motor Carrier Safety Administration (FMCSA) rulemaking that would have arbitrarily increased insurance minimums for commercial motor carriers. In 2014, the FMCSA proposed increasing federally mandated levels of insurance coverage for property and passenger motor carriers from $750,000 to $4 million.

FMCSA withdrew the rule on June 5 after acknowledging that public comments to an advance notice of proposed rulemaking (ANPRM) did not justify moving forward on the initiative. The rule would have impacted motor carriers, freight forwarders, and brokers.

OOIDA and its members had told Congress that the initiative, which the FMCSA based on increases in medical inflation, would place significant financial burdens on motor carriers without any improvement to highway safety. The Association also pointed out that more than 99% of crash damages are covered under current financial requirements.  

OOIDA’s Director of Government Affairs Mike Matousek said such an increase would put small truckers out of business. He added that the announced withdrawal is significant in that the agency usually just leaves a docket open if a proposal is no longer being advanced.

“We want to thank all the truckers and small-business trucking companies, our OOIDA board members and active membership for your work on this issue,” said Matousek.

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