July 22, 2013
Representative Matt Cartwright (D-Penn) introduced a bill on Friday that would raise the required insurance minimum for motor carriers. The current insurance minimum of $750,000 was established by Congress in 1980 and has not been adjusted since. The new bill would increase the minimum requirement to $4.422 million and would also tie the future minimum requirement to the cost of medical care inflation.
A recent study conducted by the Trucking Alliance showed that 42% of the dollar settlements paid by trucking companies between 2005 and 2011 for motor vehicle accidents exceeded the minimum insurance requirement. The Federal Motor Carrier Safety Administration is working on its own analysis of the insurance standard, as required by a highway law that Congress passed last year.
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