FMCSA Reports on Minimum Insurance Requirements

The Federal Motor Carrier Safety Administration has released the findings of a report to Congress on the adequacy of the minimum financial responsibility standards for for-hire motor carriers and hazardous materials transporters. The report concludes that these liability requirements, which have not changed since 1985, are ripe for revision.

The report states that the agency has formed a rulemaking team to further evaluate the appropriate level of financial responsibility for the motor carrier industry and has placed this rulemaking among its high priority rules.

At inflation-adjusted rates, the $750,000 minimum requirement for motor carriers established in 1985 would be $1.623 million in current dollars; using a Consumer Price Index adjuster for medical expenses, that amount would be $3.188 million in current dollars. The $5 million minimum for hazardous materials carriers, including GAWDA members, set in 1985 would be $10.825 million in today’s dollars; using a medical expenses CPI adjuster the limit would be $21.255 million in current dollars.

Gases and Welding Distributors Association