Update:  On July 1^st, 2024 New Jersey will become the first state to raise the minimum insurance requirements for truck drivers from $750,000 to $1.5 million. The bill was signed into law by Gov. Phil Murphy on January 16^th, 2024. It is not currently clear if the bill only governs trucks registered in New Jersey or all trucks who enter New Jersey. The bill failed several times before finally passing, demonstrating the power that the trucking industry has on the legislature. While an ideal insurance hike would set liability requirements at $5 million; regardless, the bill is a great step towards ensuring that all truck drivers carry an adequate amount of liability insurance. Here at Craig, Kelley, & Faultless, we hope that other states and/or the FMCSA will follow New Jersey’s lead to raise truck insurance minimums so that all truck accident victims can receive just compensation for their suffering.

In the vast and interconnected web of our highways, commercial trucks serve as the lifeblood of our economy, transporting goods far and wide. However, the undeniable reality is that with this great utility comes an inherent risk. Accidents involving large trucks can have devastating consequences, and the current minimum insurance requirements for truck drivers fall short in providing adequate coverage. In this blog post, we will delve into the reasons why it is imperative to raise the minimum insurance requirements for truck drivers to ensure justice and comprehensive compensation for victims of accidents.

Truck Driver Minimum Insurance Requirements in 2024

Per the Federal Motor Carrier Safety Administration (FMCSA), the minimum requirement for insurance for interstate motor carriers currently sits at $750,000. This number is unacceptably low, especially when considering the minimum requirement has not increased since Congress established the minimum insurance requirement with the Motor Carrier Act of 1980. If the minimum insurance requirement for trucking companies had increased with inflation since 1980, the minimum requirement for insurance would sit at well over $5 million in 2024. Instead, year after year, for over the past 40 years, the minimum limit has stayed the same.

Government Efforts to raise Insurance Requirements for Truckers have Failed

There have been efforts to change the minimum financial responsibility for trucking companies; however, these efforts have fallen flat due to the trucking companies’ powerful interests. In 2019, Representative Jesus Garcia (D-IL) and Matt Cartwright (D-PA) introduced the INSURANCE act to the United States House of Representatives. This measure would have increased the minimum requirement for insurance that trucking companies could carry to $4.9 million per accident, increasing regularly with inflation. While a version of the bill setting the minimum requirement for insurance for trucking companies at $2 million passed out of the House of Representatives (INVEST in America Act), the amendment was left out of the version of the INVEST in America Act (Infrastructure Investment and Jobs Act) approved by the Senate and signed into law by President Biden. Jesus Garcia reintroduced his bill on 12/22/23 and as a board certified truck accident attorney, I fully endorse raising the minimum financial responsibility for interstate motor vehicles.

Per the FMCSA, a fatal large truck crash will cost an estimated $4.9 million.

There is no good reason for trucking companies to get away with carrying only the comparatively paltry sum of $750,000 in coverage.

The longer the minimum insurance requirement stays the same, due to inflation it becomes cheaper and cheaper for the insurance companies to just pay out their limits, putting less emphasis on avoiding accidents. This is a dire situation. Truck accidents have been steadily increasing over time since 2009 according to the National Safety Council. In fact, from 2020 to 2021 alone, truck accidents increased by an outrageous 26%. The worst and most dangerous truck companies are getting worse, and these are the ones that typically carry only the minimum requirement. Now is not the time to make it easier for truck companies to get away with causing wrecks.

Rising Healthcare Costs Leave Truck Accident Victims with Unpaid Bills

The current minimum insurance requirements for truck drivers often prove insufficient when it comes to covering the medical costs associated with severe injuries resulting from accidents, the FMCSA even released a report that found the minimum insurance requirement to be inadequate. Catastrophic injuries may lead to extensive medical treatments, long-term rehabilitation, and ongoing care needs. Raising the minimum insurance requirements would help to ensure that victims have access to the financial resources necessary for their recovery.

As medical costs continue to soar, the financial burden of treating injuries sustained in a truck accident has become exorbitant. The current minimum insurance requirements fail to account for the escalating costs of medical care, leaving victims grappling with the aftermath and often unable to fully recover the damages they deserve.

According to the US Bureau of Labor Statistics, prices for medical care have increased 632.78% since 1980, yet the minimum insurance premium has stayed stagnant since 1980.

This means that victims suffer more every year, leaving them with less and less help from rising medical costs. Steve Owings, co-founder of Road Safe America, who lost family members in a semi crash stated in 2021 that,” It is high time that lawmakers address the reality that medical costs in 2021 are substantially higher than they were back in 1980, when the minimum levels of insurance were set,” adding that “Too many families, like mine, pay the ultimate price in truck crashes – losing loved ones. Increasing the insurance minimums will help prevent unsafe trucking companies from getting on our roads, which will help keep other families from having to endure what families like mine do every single day.”

Ensuring Fair Compensation for Wrongful Death Victims

Adequate insurance coverage is vital to guaranteeing fair compensation for victims of truck accidents. When minimum insurance requirements are raised, it reflects a commitment to ensuring that those affected by truck accidents receive compensation that aligns with the actual damages incurred. This includes not only medical expenses but also lost wages, property damage, and the intangible costs associated with pain and suffering. A person who’s lost their life in a truck accident is not just a number. Truck wreck victims aren’t just their “future earnings potential.” Trucking companies and insurance representatives forget this, sometimes; they become desensitized to the fatalities after seeing them over and over. By raising the minimum insurance requirement for truck companies to carry, it would make it more difficult for companies to just settle out a number to the family of the victim; raising the minimum insurance requirement means that trucking companies have more skin in the game and should place more emphasis on safety, as to not cause another fatality in a wreck.

The minimum insurance requirement is woefully inadequate for most wrecks. In fact, a 2013 Trucking Alliance report found that if all trucking companies had the minimum insurance requirement, 42% of truck crash victims who were injured would not have been fully compensated.

While most trucking companies carry more than the minimum required amount of insurance, there will always be carriers who put profits over people’s lives.

Taking Down Chameleon Carriers

Chameleon carriers are trucking companies that have shut down at least once due to safety issues, but due to loopholes in the FMCSA’s enforcement are allowed to reopen under a new name with a clean record, albeit without improving any of their safety issues.  A 2012 Government Accountability Report  found that carriers with “chameleon attributes” were as much as three times more likely to cause severe accidents than carriers without “chameleon attributes. Because of the artificially low minimum insurance requirements set by the FMCSA, chameleon carriers find it cheaper to shut down and re-open than to pay any settlements to the victims of these dangerous companies. The FMCSA acknowledges that chameleon carriers are a problem, and it continues to try to track these fleets down and cease their operations. However, without increasing the minimum insurance requirement for trucking companies, it seems the FMCSA will continue to fight a losing battle against chameleon carriers. Due to the minimum insurance requirement for trucking companies not increasing since 1980, dangerous carriers are allowed to carry inadequate insurance. Then, following an accident resulting in a wrongful death, brain injury, or catastrophic injury, the company just shuts down and then reopens under a new name.

Will Raising the Minimum Insurance for Truckers Put Small Operators out of Business?

While trucking companies may argue that increasing the minimum insurance requirement will put small operators out of work, so long as these operators are following safety protocols and are not chameleon carriers, higher insurance requirements really will protect small businesses. While it may be argued that increasing insurance requirements places an additional financial burden on truck drivers and trucking companies, it is crucial to recognize the potential benefits for small businesses as well. Adequate insurance coverage provides a safety net for small operators, protecting them from bankruptcy in the event of a catastrophic accident. This, in turn, fosters a more sustainable and responsible business environment.

Chameleon Carriers in Action

Craig, Kelley, & Faultless represented the family of two people who were killed by a chameleon carrier in Jennings County, Indiana. A dangerous company with bad equipment and bad drivers was shut down. With the help of their various agents, they reopened under a new name and identity. Same bad and dangerous equipment. They even kept some of the same bad drivers. They purchased the minimum insurance of $750,000. They then low bid a job, which they could do as they had old, poorly maintained equipment and low-cost drivers. As one of their drivers was heading west on US 50, he noted that the brakes were not working properly, and he became scared to drive any further. He pulled off the roadway and called the company. The owner of the company told the driver that he had to either keep driving or he would be fired. The driver wasn’t willing to endanger himself or others, so he refused to continue the trip. The owner was then driven to the semi tractor trailer. He then drove the semi himself despite the faulty brakes. Unfortunately, in North Vernon, Indiana, he came upon stopped traffic and because of the non-functional brakes, he was unable to stop, and he rear-ended our clients. One of our clients was killed instantly. The other died within minutes of the wreck.

Accountability and Deterrence Against Unsafe Fleet Practices

Raising the minimum insurance requirements for truck drivers serves as a powerful deterrent against negligent practices. Knowing that they bear the responsibility of carrying substantial insurance coverage, trucking companies and drivers are incentivized to prioritize safety measures and adhere to regulations. This shift toward accountability contributes to a safer road environment for all. Increasing the minimum insurance requirement for interstate operators means that companies will want to find a way to decrease their insurance premiums. Insurance companies decrease premiums when they determine that the company is less risky; thereby motivating companies to adhere to safety protocols and introduce new ways to make sure their fleet is less likely to cause a wreck. With higher stakes, trucking companies and drivers are more likely to prioritize safety measures, implement rigorous training programs, and invest in preventive technologies, contributing to an overall improvement in road safety.

Using Telematics Lowers Insurance Premiums, Makes the Roads Safer

One way for trucking companies to make their insurance premiums lower is by utilizing a technology called Telematics. The use of telematics includes the installation of driver monitoring devices in the vehicle; for example, GPS tracking devices and cameras that monitor cellphone usage, harsh braking, speed, and other information. Many insurance companies now use telematics data is used to determine premium cost by monitoring driver safety. Telematics is also used so that trucking companies can monitor their drivers, ensuring safety policy compliance. When drivers know that they are being monitored, they drive much safer, reducing crashes. AXA XL Insurance reported that the use of fleet telematics reduced vehicle crashes by up to 35%.

Truck Accidents Can Cause Injuries to Many

Accidents involving commercial trucks often entail much more complex legal and medical intricacies than regular automobile accidents. Raising the minimum insurance requirements acknowledges the multifaceted nature of these accidents and ensures that victims have the financial means to deal with what are life altering injuries and medical treatments. Semi-truck accidents are simply more dangerous than car accidents. The National Highway Traffic Safety Administration found that semi-trucks are twice as likely to cause a fatal wreck in comparison with other automobile crashes.

Truck Wreck Victims Shouldn’t Have to Fight for their Fair Share After an Accident

Another problem with low insurance limits is that large trucks can cause damage to many people and vehicles in one crash. For example, a semi crash that occurs during a backup in a construction zone could damage 10 or more vehicles. However, the $750,000 minimum requirement is a $750,000 per crash, not $750,000 for each person injured or even killed. This means that all 10 people who were injured or killed would have to split the bare minimum, leading many without fair compensation. Instead of the insurance company paying out full compensation to each victim, the government is forced to pick up the trucking company’s tab for people who may very well never be able to work again due to the trucking company putting profits first and only obtaining the bare minimum insurance.

Rising Inflation for Truck Accident Victims

The economic landscape is dynamic, and as it evolves, so should our regulatory frameworks. Raising the minimum insurance requirements for truck drivers is a proactive step in adapting to economic changes, ensuring that insurance coverage remains adequate and relevant to contemporary challenges. The minimum insurance requirement for truck drivers should increase with inflation, to ensure that victims are adequately compensated for a driver or their company’s negligence. Truck companies cannot be allowed to get away with carrying such an inadequate amount of insurance. As the economy continues to face inflation, truck accident victims should not have to be worried that they won’t be able to pay their bills.

Over the past 35 plus years that I have been handling car accident cases involving semis, dump trucks, and other commercial motor vehicles I have seen many cases where the minimum insurance was inadequate and left good, innocent victims facing dire physical, mental, and financial challenges. Enough is enough. Let’s protect those injured or the families of those killed by dangerous semi tractor trailer drivers and dangerous trucking companies. Let’s raise the limit so that the trucking industry is encouraged to adopt safer industry standards and practices that discourage reckless driving. Adequate insurance coverage is a fundamental aspect of justice, ensuring that victims receive fair compensation, that small businesses are protected, and that accountability prevails on our highways. As we strive for a safer and more equitable future, elevating the standards for insurance coverage in the trucking industry is a crucial step toward achieving that vision.

Were You Injured In a Truck Wreck And Need Fair Compensation?

Craig, Kelley & Faultless LLC was established in 1999 to help injured people and their families recover from the physical, emotional, and financial challenges posed by catastrophic injuries or the death of a loved one. They are nationally recognized as attorneys representing injured victims of trucking and commercial vehicle wrecks.  Craig, Kelley & Faultless is headquartered in Indianapolis and has offices in Indiana and an office in St. Louis. It has attorneys licensed in Indiana, Illinois, Missouri, Kentucky, and Ohio. Get a free case review with one of our accident attorneys by 1-800-746-0226, and additional information can be found at www.ckflaw.com.