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Proprietor Operator legal responsibility insurance coverage proposal set at $4.9 million – jj

Proprietor Operator legal responsibility insurance coverage proposal set at $4.9 million

Independent truckers warn against crash liability proposal

Legislation that would increase the minimum insurance liability coverage required for interstate trucking from $750,000 to almost $5 million would put more small owner-operators out of business, independent operators claim.

In a July 29 letter warning against the proposal, which was introduced in the U.S. Congress on July 16, the Owner-Operator Independent Drivers Association (OOIDA) told lawmakers that while the bill’s supporters contend it would increase safety by weeding out unsafe drivers and equipment, there is no correlation between insurance coverage and highway safety.

“In fact, increasing insurance minimums would likely force many owner-operators – who are collectively among the safest, most experienced drivers on the road – out of the industry because premiums would become unaffordable,” wrote OOIDA President Todd Spencer. “As a result, H.R. 3781 would actually decrease highway safety, not improve it.”


#trucking #truckinginsurance #owneroperator



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  1. I can appreciate your opinion coach but it seems to have ignored a fundamental statement in this article.

    The article states that insurance carriers that will face a 5x payout on CMV related accidents will need to review safety records of applicants more closely. On the other side drivers will need to place a greater value on their safety scores.

    Something to consider is that a 650% increase in minimum coverage does not mean a 650% increase in premiums. Sure the price will go up but for insurance companies to continue to make money they would have to find programs that make the new minimums affordable to at least the safest driving candidates.

    Isn’t that what we want? Or do we want anyone with a right leg behind the wheel?

    Collectively as consumers of insurance products we are always focused on the minimum insurance we need. In trucking, car, home owners, life insurance.

    Is it really so bad to force some of these insuring companies to put more skin in the game. A 1 million dollar policy for a serious trucking accident in today’s litigious climate is laughable.

    If you still disagree I would encourage you to post a memorial video to the family and loved ones of the 7 motorcyclists killed this past June on how you feel 1 million is adequate restitution for all those affected to replace the wealth these men and women brought to the lives around them that is now gone forever.

    If this company had stricter insurance standards perhaps this 23 year old driver with a history of drinking could have been removed from the system before this accident could occur.

    Trucking has turned into a Hail Mary career for those looking for decent income with a low skill set. The true professionals in this field are left holding the bag.

  2. Sounds more like the ATA putting the final squeeze on small trucking companies and indies.

    Don't get me wrong when I say this. I'm all for safety on the roads, it just seems to me that "safety" is more a buzzword that stirs up that "warm, fuzzy, dr feelgood" feeling that only leads to more regulation and more destruction of this industry. This will definitely crush out a lot of the big boy's competition. Like someone said before, in trucking, you are either an employee or competition.

  3. So a scumbag ambulance chaser turned rat politician pushes legislation so scumbag ambulance chasers can sue for more.
    If congress passes this I don’t see it passing the senate, nor do I see it being signed by the president.

  4. Glad you saw my comments where I first broke this story a few weeks ago. The trial lawyers are behind this legislation for obvious reasons. Look for insurance rates to continue to rise as more accidents occur as millions of immigrants flood into the country without the infrastructure to support the increase in the motoring public. This legislation was developed after the ambulance chasers were not able to reap a windfall from the devastating accident in Colorado.

  5. This same story came up back in 2014 as well. Liability insurance was supposed to go up to $4.6 million. Its put out there as needed based on truck accidents all though there is no overwhelming evidence that trucks cause more accidents. The reality is this is the legal profession lobbying for the increase so they can sue trucking companies for more money. Thats the bottom line. Small trucking companies are hurt by the cost increase while self insured mega carriers would not see any increase in their costs. The safety argument is BS.

  6. The problem right now freight rates change hour by hour .
    It like the ELD crap I survived . But I pissed and moaned a lot . Like all of us it gets into our bottom line witch gets into our beer money.
    Something has to be done with rates to up our insurance cost .
    I lease to a small old company 35 trucks . 11 of the trucks are mine . 88% The owner let's. Me do what I like . I found a life time home.
    The best part No YouTube drama in the company
    Theres a lady in PA has trucks here

  7. Insurance I believe needs to increase . In today's world
    750k is not enough . But what is enough.
    The company I am leased to has 750k liability and they offer 1 million and 2 million .
    And I believe cargo insurance is not enough as cargo increases in Value .
    A claim or and accident can bankrupt you.
    But at the same time so can the cost of the insurance . Its 2 edge sword

  8. Geez i keep thinking about getting into trucking but the more i hear about stuff like this jacking up operating costs how the hell is anyone supposed to stay in business. Sounds like the insurance companies are trying to scam the industry and fill their pockets so they can buy mansions and lamborginis. Id like to get a cdl and get started and someday own my own truck its always been a dream of mine but damn when i hear stuff like this that dream is fading away. Frieking sad im not even a truck driver but ive heard enough about how truck drivers are getting screwed. Like all the bad crashes are the drivers fault. Not all of them are for pete sake. And of course the poloticians that wanna pass the bill for higher insurance rates are all frieking democrats. Imagine that.

  9. Fallow the money when the advocate in the name of "Safety". It's the big carriers that are not really affected by the legislation. The market is getting softer, they want 18 year old drivers for cheap labor and cut down our speed. They are creating the perfect storm for the big carriers. As far as your content is good, your performance is horrible. Say the like and share thing once and move on don't repeat it again and again. Your great work up to that.

  10. How many times have you seen my comments over the past decade warning people what is happening? It is not fair and it is intentional. The intent is to break the backs of independent contractors. You can fight back when they do force you out of your truck, refuse to get in a mega carrier company truck. Collect your unemployment then get a local minimum wage job you will actually earn more if you work the same hours and get overtime and benefits. when the industry crashes and the mega outfits go bankrupt they will beg you to get back in a truck and you can name your price. FIGHT BACK OR LOSE YOUR COUNTRY.

  11. The final goal is to force all O/O and small carrier's out of buisness.

    So the top 5 mega carriers can ran all freight..
    This has been happening thru trucking lobbyist with congress for yrs, were just final getting closer to the end..

  12. I mean hell freight costs are down, maintenance and operating costs are higher as well as fuel. So now insurance liability goes waaaay up and for highway safety. Please sounds like the real reason is because these law firms they take on these big accidents can now sue for 5 times more than what they've been getting. And to make it even better they have politicians pushing these bills with family law firms. Of course it's a win win for them. Not to mention mega carriers taking over and to hell with O/O that are struggling. Smdh

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