OOIDA renews efforts to stop another minimum insurance bill

The Owner-Operator Independent Drivers Association is asking its members to push back against yet another attempt to drastically increase a motor carrier’s minimum insurance requirement.

Just days before Christmas, Rep. Jesus “Chuy” Garcia, D-Ill., introduced the Fair Compensation for Truck Crash Victims Act. The bill would increase a trucking company’s minimum liability insurance from $750,000 to $5 million – a 566% surge.

On Monday, Jan. 22, OOIDA encouraged its more than 150,000 members to oppose Garcia’s bill.

“There is absolutely no data to demonstrate that raising minimums would improve safety in any way,” OOIDA wrote. “And research shows that existing minimums cover costs in over 99% of cases.”

This is not the first time lawmakers have attempted to impose a substantial increase on truckers’ minimum insurance requirements. Under the previous name of the Insurance Act, Garcia attempted to increase the minimum amount to $4.9 million in 2019 and to $5 million in 2021. Neither of the standalone bills came close to passing the House, as they garnered only six and eight co-sponsors, respectively. Rep. Matt Cartwright, D-Pa., also tried to increase the minimum number several times, starting with a hike to $4.2 million in 2013.

Although the standalone bills never gained momentum, Garcia also tried to add a provision in the 2020 and 2021 highway bills that would have increased minimum insurance to $2 million. The provision gained Democratic support in the House but helped lead to the bill’s ultimate failure in the Senate.

Proponents argue the legislation would protect families “from the financial devastation caused by catastrophic truck crashes.”

OOIDA’s take

OOIDA believes the bill is motivated by trial lawyers, pointing out that motor carriers already carry $1 million in insurance. In addition, the most recent study into the issue found that the current minimum insurance level covered damages in 99.4% of cases.

Now, the Association is rallying its members to help stop the latest attempt at an “unnecessary” increase.

“It’s disappointing that Rep. Garcia is supporting this money grab, but Congress has rejected similar proposals in recent years due to OOIDA opposition,” the Association wrote. “Now, we need your help again to make sure Congressman Scrooge cannot further line the pockets of trial lawyers.”

OOIDA’s Fighting For Truckers website allows people to easily contact their lawmakers and encourage them to oppose Garcia’s bill. To do so, click here.

“Oppose HR6884, the Fair Compensation for Truck Crash Victims Act,” OOIDA wrote. “Tell your lawmakers that raising your insurance requirements is wholly unnecessary, would do nothing to improve highway safety and would have a severe negative impact by significantly increasing your operational costs.” LL