White House Considers Raising Insurance Requirement

department of transportationThe White House Office of Management and Budget received notice from the Department of Transportation about a possible increase to the minimum insurance required for motor carriers. The Federal Motor Carrier Safety Administration may also extend financial responsibility requirements to freight brokers and forwarders, passenger carrier brokers, and private motor carriers.

FMCSA wants to implement a rule to raise the minimum liability insurance above $750,000 where it currently sits for property carriers and, for the first time, may require private motor carriers to abide by a financial responsibility requirement, as expressed in an April report to Congress. The DOT has determined the current minimums provide inadequate coverage of certain crashes given increased medical expenses and a revised estimates of this value of statistical life.

FMCSA is fast-tracking the rulemaking and expects to publish the ANPRM by the end of the month. The proposed rule will be settled during a lame duck session as part of a long-term appropriations bill.

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