Tag Archives: minimum liability insurance

With Road to Zero, DOT commits $3 million; compare that to $9.6 million Value of a Statistical Life

I should be jumping up and down for joy about the recent launch of the Road to Zero Coalition by the US DOT and the National Safety Council. So it doesn’t feel great to be one of those voices who are saying negative things about this great project.

I do look forward to watching how they coordinate the efforts of many organizations around this country who work to save lives. But I have some concerns about the process:

  1. Will they make any significant change in the strategies used to address the disturbing public health problem of 35,200+ Deaths by Vehicle Violence each year?
  2. Will they harness the energy and motivation of survivors/families of victims of vehicle violence?
  3. Will they mobilize citizens to be a significant part of the solution?
  4. Will they have a powerful voice to speak on behalf of the vulnerable victims who cannot speak for themselves?
  5. Will they take steps to address the imbalance of priority in rulemaking of profit over people?

Let’s just consider the last question. One thing which I have learned, after my life was catastrophically up-ended by my two youngest daughters’ deaths from a truck underride crash, is that there appears to be a hesitancy (to put it mildly) to put a meaningful monetary value on the cost of saving human lives.

To begin with, there is the difficulty of getting safety measures to pass the stringent test of the cost/benefit analysis required in federal rulemaking which, in my mind, inordinately favors the cost to industry vs benefit of preventing deaths and serious injuries. This is also reflected in the opposition to increasing the minimum liability insurance for truckers which was set at $750,000 in 1980 and has not been raised since then — despite the current Value of a Statistical Life (VSL) set by DOT at $9.6 million for 2016.

Value of a Statistical Life-guidance-2016

If you have read much of what I write, you might realize that I am in favor of reshaping the rulemaking process to ensure that it properly values human life. But aside from that, let’s just use that $9.6 million and do a little math.

The US DOT announced with the launch of the Road to Zero Coalition that it was committing $1 million/year for three years for grants to non-profit organizations that propose initiatives to save lives. Sounds great, right? But then I took out pen and paper (to get the hands-on sense of the calculation) and worked out the Value of the Statistical Lives of the 35,200 people who died on our roads in 2015 — keeping in mind that it was probably undercounted and does not include the cost of serious injuries.

$9.6 million X 35,200 = $337, 920,000,000 or almost $338 billion in one year alone

Then I decided to take it one step further and calculate the cost of the traffic fatalities over the next 30 years of the Road to Zero strategy to save lives — without taking into account the probable increase in the VSL.

$337,920,000,000  X 30 = $10,137,600,000,000 or over $10 trillion (which includes the cost to society)

And how much is DOT dedicating to this project to try and put a dent on the estimated 1,056,000 Deaths by Vehicle Violence? $3 million (of taxpayer money) — not even 1/3  the supposed value of a person’s life. Why, my two daughters alone were supposedly worth $18.2 million combined in 2013. Two immeasurably precious ones gone far too soon.

$3,000,000 vs $10,137,600,000,000

Now I had trouble even typing those numbers in accurately, so it is entirely possible that I made a mathematical error (didn’t use a calculator). So, please, do the math yourself. And then let me know if you think that we, as a country, are making a truly meaningful effort to do something new to stem the tide of bloodshed.

IMG_4464

 

CBA Victim Cost Benefit Analysis Victim

Car Safety WarsPetition

Insightful Commentary on the State of Trucking Minimum Liability Insurance by a victim’s family member

Minimum Insurance infographic

What do you think about the tug of war over trucking minimum liability insurance? Should it or should it not be raised after 35 years? Before you decide, read this commentary by a family member of a truck crash victim (Michelle Novak):

Michelle Novak 🙁https://www.facebook.com/groups/494507530713925/permalink/548460131985331/)

“Not one single penny increase. It’s “purchasing power” is almost zero, and this is money that has to be disbursed among survivors of wrecks, whether one or thirty—they split the $750,000… After lawyer fees, first in line are the—get this—insurance company lawyers! They get free taken out of this survival money for victims, for emergency room lifesaving, surgeries, helicopter flights, ambulances, ICU, etc…even though those same lawyers are paid by the insurance company. They don’t shop around to find a lawyer who will handle passing out the money. These are lawyers who are part of these gigantic insurance behemoth. And after all the first responders line up for their cut to cover….responding to a truck crash, repairing roads and guardrail, hazmat responses, putting out fires, using the jaws of life to extract victims, police presence, etc…,

“Now. Imagine 15 victims, fine fatalities and ten injuries, nine damaged vehicles, on top of all this. Victims were airlifted, all were treated, and one needed heroic efforts and now a lifetime of care, has become disabled. ..there is so much in one complex wreck, it works be almost impossible to calculate cost. Doesn’t matter. Can’t sue the insurance company for knowingly covering a driver with a ten-year history of lawbreaking with his truck, leading to this crash. Can’t sue the govt agencies that simply didn’t bother dreaming with him and enforcing the laws it is tasked with enforcing. And the company is a one-truck operation that files for bankruptcy the day after the crash.

“$750,000 ….minus all those players. That is, of course actually nothing, which is why victims end up with medical liens placed on everything they own or ever might own, and are in debt the rest of their lives, on top of the injury, the death of their loved ones.

“Now Imagine your killed loved one wasn’t actually moving when the wreck happened. He wasn’t even allowed to move. An accident up ahead. Traffic stopped. Ever other citizen duly stopped, as required by law.except the sound asleep truck driver with the forged medical certificate, the black-market purchased commercial license, the falsified log books, the fact that though he was exhausted, he drove right by the last truck rest s stop only a mile or so before he plowed right into that liner of stopped cars, ripping apart five human beings as he went.

“$750,000 in an industry that capitalizes on carrying insurance from over thirty years ago, with insurers who are shielded from civil suit, which means they don’t have any responsibility for knowingly, or not even bothering to find out, if the drivers they profit off of are horrible risks or not. And why should they? The most they could possibly lose,no matter how many laws the driver broke, no matter how habitual a lawbreakers the driver is, and no matter how many lives he destroys, is $750,000…

“How fantastic to be in a risk-based industry, covering bets on risk, and not even needing the actual insurance model to guarantee profit. How great to be able to figure your maximum costs based on the number of drivers insured, knowing that you’ll never be dragged into court, never be called to answer for insuring lousy drivers along with good…..how profitable to be able to charge those drivers more based on risk, without ever having to pass that magic, chiseled-into-stone level of $750,000…that is a custom-made giant profit machine, if ever there was one.

“If anyone else happens to read this…..if you haven’t had to experience this reality yet personally, please do your best to picture it. It can be your reality in the blink of an eye: your never-ending injustice that you get to live every day, knowing that these insurance execs, CEO s, shareholders, all walk away oblivious to what this setup, that they don’t mind spending good lobbying money on, does to not only its victims, but the entire society of taxpayers who must pick up the costs for every one of the parties listed earlier, because the cost has to be paid.

“There are ways to raise this to appropriate levels, while still spreading out cost among drivers and those very rich insurance companies, and the very rich gigantic retail, warehousing and shipping firms that make constant use of their trucks.

“We’ll get a plan hammered out, at some point. And then we’ll push it until the entire industry shares the costs of risk. When they finally all share it, you’ll be amazed at how quickly they straighten all this out…and these nightmares will stop.

“They don’t do anything out of kindness, citizenship duties, or any altruism. You have to make it hurt their only source of feeling: the gigantic pile of wealth they amass at the expense of their victims.”

Chuck Novak’s crash: http://www.truckaccidentlaw.org/blog/3363/driver-faces-multiple-charges-in-deadly-north-carolina-truck-accident/ &  http://www.blueridgenow.com/article/20101027/articles/101029886

Read more posts on this topic:  http://annaleahmary.com/tag/minimum-liability-insurance/

Owner-Operator Independent Drivers Association brochure of services

This OOIDA brochure describes their benefits and services. I picked it up at a truck stop while on a road trip. Note the truck driver insurance & minimum liability.

OOIDA brochure

“‘Ridiculous and tragic:’ Why insurance is unlikely to cover Simeon’s crash victims”

‘Ridiculous and tragic:’ Why insurance is unlikely to cover Simeon’s crash victims

“ITHACA, N.Y. — In 1980, the U.S. Congress passed a bill forcing all trucking companies operating across state lines to have insurance that covered at least $750,000 in damages in the event of a crash.

That number hasn’t been raised in the 35 years since.

‘It’s so pathetically low,’ says John Lannen, executive director of the Truck Safety Coalition. ‘That $750,000 is not going to be anywhere close to covering the cost of a catastrophic crash.’

The company that owned the truck that hit Simeon’s in downtown Ithaca on June 20, 2014, had a policy of $1 million, which is considered by experts to be slightly higher than the $750,000 minimum. That information was confirmed in legal papers released earlier this month, in which the Sparta Insurance Firm asked the court to divide the $1 million between possible victims.”

Read more here: http://ithacavoice.com/2015/07/ridiculous-and-tragic-why-insurance-is-unlikely-to-cover-simeons-crash-victims/

Ralph Nader: “Enough! Stop More Giant Truck-Trailers on Your Highways”

Ralph Nader speaks up about the battle for truck safety, calling for citizens to speak up for safer highways–a matter of life & death.

Read more here & see how you can help:  https://blog.nader.org/2015/07/02/enough-stop-more-giant-truck-trailers-on-your-highways/

Rebekah photo of crash

 

Contact Information for U.S. Senators:  http://www.senate.gov/general/contact_information/senators_cfm.cfm?OrderBy=state

Contact Information for U.S. House of Representatives:  http://www.house.gov/representatives/

See previous posts for Congress contact information:

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Tug of War over truck/highway safety: Something’s wrong with this picture!

Two years ago a truck crash killed our two youngest daughters, AnnaLeah (17) and Mary (13).

One year ago, we garnered over 11,000 signatures on a petition asked Secretary Foxx to advance 3 measures to improve factors related to safety on our roads.

We have seen step-by-step progress toward our goals but get concerned when we see signs that a tug of war continues over this life & death battle.

“Two Different THUD Bills Set Up Congressional Showdown on Trucking Issues” http://www.landlinemag.com/Story.aspx?StoryId=29323#.VZUr1_lViko

  • In our AnnaLeah & Mary Stand Up For Truck Safety Petition, we asked for Electronic Logging Devices to be required as soon as possible due to our concern about the impact of Driving While Fatigued (DWF) on truck drivers’ ability to respond in emergency situations (e.g., in work zones or when traffic is backed up due to a crash ahead–as in our case) http://www.bloomberg.com/news/articles/2014-10-01/mom-takes-on-truckers-after-highway-wreck-kills-daughters
  • Yet, there is still opposition to this method of keeping track of the hours that drivers are behind the wheel (paper log books are a joke, not considered reliable, & never shown to us after our crash).
  • From that report on the THUD Bills: “The House version also chose not to expedite mandates for electronic logging devices or speed limiters, which – like the insurance issue – are items opposed by OOIDA and small-business truckers but supported by large carriers and the American Trucking Associations.” – See more at: http://www.landlinemag.com/Story.aspx?StoryId=29323#.VZUr1_lViko
  • You’ve got to be kidding!
  • In our petition, we also asked for increases in minimum liability insurance for truckers–currently at $750,000 for over 35 years.
  • This, too, is being opposed. Read what that article said, “The House of Representatives has already passed its version of HR2577 for Transportation, Housing and Urban Development (THUD). That occurred on June 9. OOIDA and small-business truckers won a victory in that version because it contained language to prohibit the Federal Motor Carrier Safety Administration from pursuing an increase to insurance requirements for motor carriers.” – See more at: http://www.landlinemag.com/Story.aspx?StoryId=29323#.VZUr1_lViko
  • At least there is some hope for moving the insurance issue forward, “Specific to the insurance issue, the Senate version says FMCSA may continue pursuing an increase to insurance requirements, but only if the Department of Transportation secretary reports to the Appropriations Committee about the effects of raising the financial responsibility. The report would have to include an assessment of crashes that exceed the damage limits and assess the effects of higher insurance premiums on large and small motor carriers.”While hardly a glowing endorsement for increasing insurance requirements, the Senate version of HR2577 does not prohibit an increase as the House version does.” – See more at: http://www.landlinemag.com/Story.aspx?StoryId=29323#.VZUr1_lViko
  • See what I found out on estimated liability insurance rates if the minimum is raised: http://annaleahmary.com/2015/06/uncovering-new-information-on-trucking-minimum-liability-insurance-rates/

And while I’m at it, here are some other things going on with truck safety:

  1. “Tractor-trailer hitches could be faulty, 6,000 may be in use”  http://bigstory.ap.org/article/b9a33284cb604dc79f7e7d8ecd3c18ef/tractor-trailer-hitches-could-be-faulty-6000-may-be-use
  2. “Senator Goes After Reform of FMCSA” http://www.landlinemag.com/Story.aspx?StoryID=29305#.VZUqSPlViko     Comment by Steve Bixler
    “I applaud Sen. Fischer for her work on this bill. I have been saying for years, and hopefully it can be added to this or another bill soon, that what we need is a panel of veteran truck drivers, not company executives or industry stakeholders, but the actual guy who has his butt in the seat everyday, to oversee and review all existing FMCSA Regs, and also to be a part of all new regulation writing, so we can finally get rules and regs that are actually about safety and not money.”

Something’s wrong with this picture! When will it end?

Let’s make sure that it is not just about $.

And let’s not just point our finger at someone else to take the blame. Let’s figure out what we can do to end this senseless, tragic heartache happening on our roads. Let’s work together.

We Rescue Jesus Saves 018

Safety Is Not A Priority

Uncovering new information on Trucking Minimum Liability Insurance Rates

After numerous phone calls and emails, I have finally been able to find someone who could give me a rough estimate of the premiums which a trucking company might be able to expect if the minimum liability gets increased from $750,000 to $4.2 million. In fact, two people–unbeknownst to each other–referred me to this man, who is the president of an independent insurance agency.

I spoke with him yesterday and explained to him the kind of information that I was looking for and why I was doing so.  I let him know that I have been trying to verify whether there was any truth to the “early estimates” which I have been reading about and that it was important to me to know whether what truckers and Congress were being told was accurate. Specifically, is it accurate that a current premium of $5,000/year could skyrocket to $20,000/year?

He then described to me the graduated system of premium rates–which I had previously heard of through John Lannen: http://annaleahmary.com/2015/06/the-future-of-trucking-who-pays-for-the-costs-of-safer-roads/ John Lannen, executive director of the Truck Safety Coalition, has shared background information with us which he has gathered from numerous sources, presentations, and conversations regarding the economics of additional insurance coverage for motor carriers.  It turns out that the first million dollars’ worth of  trucking insurance is the most expensive and each incremental amount is cheaper. . . . ” (For more details, go here: http://annaleahmary.com/2015/06/trucking-minimum-liability-insurance-trucker-wages-a-facebook-conversation/ )”

After speaking with him, I immediately proceeded to email him and document what I had heard him tell me over the phone. I asked him to verify the accuracy of my description. Here is my email to him and his response to me:

Thank you again for taking the time to speak with me and answer my questions about trucking liability.
Please let me know if this is an accurate representation of your rough estimate of the impact of an increase in liability coverage upon trucking premiums:
1st million: $5,000/truck
2nd million: add $1,200
3rd million: add $900
each additional million: would continue to be a smaller increase
So, in this example, a trucker who currently pays $5,000 (and again, I am confused if this means that this $5,000 is for just his liability portion or his whole insurance bill) would pay something a little more than $7,100–like maybe $7,600.
To clarify: That estimate of a trucker’s premium would be for if the liability coverage was $4.2 million.
Would this be an accurate ROUGH estimate?
Marianne
His reply to me:

Marianne:   Thanks for your call and again my sincere regrets for your loss.   Yes, this is a very rough and best guess estimate based on what I see and hear. 

Best wishes in your pursuit. 

I also heard back from a trucker whom I have been in conversation with via email and facebook. Tilden Curl got me in contact with his insurance agent, who responded to the above information with his own estimate:

Hello Marianne and Tilden,

 My condolences, Marianne, for your loss. My heart is heavy for you as Tilden spoke of your story and inquiries to me yesterday. Admittedly my thoughts drifted to you & your daughters while I passed a number of tractor/trailers on the freeway just last night. . . 

Due to so many factors the variance of premiums is enormous. We have seen some at $1,800 all the way up to $9,000 annual.

Historically, since the current minimums were mandated back in early 1980s, a good average would be the $5,000 mark. It does tend to flow up and down with the economy, markets, catastrophic events, and such, but a good average is the $5K.

I can only speculate on what the premiums would be if federal mandate were to be elevated to a $1.5MM, $2MM, $3MM or even $4.2MM limits.

The numbers estimated in the other emails seem pretty low to me. I would think closer to:

1.5MM – $6,200 +/- annual

2MM – $7,000 – $7,500

3MM – $7,800 – $8,400

4.2MM – $8,600 – 9,300

Mark D. Johnson

HUB International Transportation Insurance Services, Inc.

Even if we go with the second estimate, $9,300, this is still only an increase of $4,300 from a current $5,000. Compare this to the “early estimate” of $20,000 or more, which is what is being told to truckers and would increase their premium by $15,000/year.

Thus, the estimates I have been given are at least $11,700/year less than what truckers are apparently being told. Big difference.

Furthermore, I am assuming, that Congress has been told that the rates will skyrocket and go up to $20,000. So the question is:  Did Congress vote upon the THUD Appropriations Bill — to take away funding from FMCSA which would allow them to continue the rulemaking on this vital matter (previously authorized by Congress) — based on INACCURATE information?

Read about that here:

Truckers, Please help me find out the facts on your insurance rates.

I have tried in every way I can think of, but I just cannot get anyone to give me any actual rates which a truck driver could expect if minimum liability insurance were to be raised by the federal government for interstate trucking.

(Read about my search for information here: http://annaleahmary.com/2015/06/my-crash-course-on-underwriting-for-trucking-minimum-liability-could-impact-you/ )

I have a few leads which I am waiting to hear back on, but I am not holding my breath.

So, I thought that I would turn to truckers themselves and ask for help in discovering what the truth of the matter is: Will rates actually skyrocket and put independent owner operators out of business? That’s what I hear. Is that the truth?

If you are a trucker, please contact your insurance carrier and ask them what your current annual rate is for liability insurance and what it would be if the minimum level were to be raised from $750,000 to $4.2 million.

Then, please let me know what you find out. You can comment on this post or send me a Tweet at my Twitter account or a private message at our facebook account. If you don’t feel comfortable about letting me know, please talk to each other about it and see what you think.

Twitter Account: https://twitter.com/MaryandAnnaLeah

Facebook Account: https://www.facebook.com/pages/In-Memory-of-AnnaLeah-1995-to-2013-and-Mary-Lydia-Karth-1999-to-2013/464993830249803

Thanks!

Marianne, standing up for truck safety in memory of AnnaLeah and Mary

AnnaLeah and Mary

My Crash Course on Underwriting for Trucking Minimum Liability Could Impact You

In case you did not know it, the minimum level of liability insurance, which trucking companies are required to have, is $750,000 and has not increased in over 35 years. It has not kept up with inflation as Congress intended when it originally authorized the Secretary of Transportation to set that limit.

“The Motor Carrier Act of 1935 first directed the establishment of Federal rules and regulations for interstate motor carrier operations that govern “security for the protection of the public.” Over time, both Congress and the Federal government have taken numerous actions to address the levels of financial responsibility, most recently with the recent enactment of MAP-21. The current minimum levels of financial responsibility for commercial motor carriers were established by Congressional legislation in the early 1980’s. Recently, there has been interest in determining whether the current mandated levels continue to accomplish these goals and whether victims of truck- and bus-related crashes are adequately compensated.” p. xi  http://www.fmcsa.dot.gov/sites/fmcsa.dot.gov/files/docs/Financial-Responsibility-Study.pdf

As one daughter of a truck crash victim has said, “That’s $750K for each incident, not each person injured or killed in a crash. So if several families or cars are involved all those injured and all the families of those killed must share the $750K if that is all the truck company has.”  http://trucksafety.org/dawn-kings-journey-2011/

In contrast, check out this DOT document which they prepared in order to determine the value of lost life and injury and its impact on rulemaking decisions:                                          VSL Guidance-2013-2 DOT value of life .

In the fall of 2014, the Federal Motor Carrier Safety Administration (FMCSA)  issued an advanced notice of proposed rulemaking  in order to study, among other things, the question of whether the minimum liability level should be increased in order to more adequately compensate for lost life and injury due to truck crashes.

  • The Federal Government has long required motor carriers to maintain certain levels of financial responsibility, either through insurance, a bond, or other financial security, as a means to protect the public in the event of a crash.  An April 2014 Report to Congress found that while catastrophic motor carrier crashes are rare, the costs for resulting severe and critical injuries can exceed $1 million; current insurance limits do not adequately cover these costs, which are primarily due to increases in medical expenses and other crash-related costs. – See more at: http://www.fmcsa.dot.gov/newsroom/fmcsa-seeks-comment-public-insurance-providers-motor-carriers-revising-minimum-levels#sthash.dQV1v0AQ.dpuf
  • From a study released in April 2014, FMCSA says that, “The legislative history of minimum insurance requirements for commercial motor vehicles (CMV) indicates that Congress recognized that crash costs would change over time and that DOT would periodically examine the levels and make adjustments as necessary. A variety of recent studies indicate that inflation has greatly increased medical claims costs and related expenses. In conclusion, FMCSA has determined that the current financial responsibility minimums are due for re-evaluation. 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 the Agency’s high priority rules. The FMCSA will continue to meet with the stakeholders, including impacted industries, safety advocacy groups, and private citizens, as it moves forward with developing a proposed rule.”  http://www.fmcsa.dot.gov/mission/policy/report-congress-examining-appropriateness-current-financial-responsibility-and

Unfortunately, despite the insistence of many that this increase is necessary, the trucking industry is lobbying against it–declaring it unnecessary–and, at present, has put a rider in the THUD appropriations bill now being voted on. If the bill passes with that rider intact, then FMCSA will no longer be funded to complete the rulemaking process which has already been authorized.

What is the truth in this matter–necessary or unnecessary? That is what I would like to know. And I think that truckers and lawmakers and the public need to know this as well. And that is why I set out on a quest recently to find the answer to that question.

The support for halting the rulemaking which is coming from the trucking industry includes the Independent Owner Operators, who in particular are being told that their premiums will skyrocket if the rule were to pass.  According to Jami Jones from OOIDA (Owner-Operator Independent Drivers Association),

“An increase such as the one Cartwright is proposing would cripple small-business-truckers. Currently, the national average cost for a small-business trucker insuring one truck is about $5,000 per year.

It’s virtually impossible to project what the cost would be if the minimum liability requirement were increased more than 500 percent.

For starters many insurance carriers may quit offering insurance because of the increased amount of financial resources they would have to have in place to even write the policies. Secondly, there is no straight-line increase that can be drawn. But early estimates place annual premiums at $20,000 or more for a one-truck owner-operator for a $4.2 million liability policy.” – See more at: http://www.landlinemag.com/Story.aspx?StoryId=25702#.VXoxp_lViko

In contrast, check out this opinion on the potential premium:

http://annaleahmary.com/2015/06/the-future-of-trucking-who-pays-for-the-costs-of-safer-roads/ John Lannen, executive director of the Truck Safety Coalition, has shared background information with us which he has gathered from numerous sources, presentations, and conversations regarding the economics of additional insurance coverage for motor carriers.  It turns out that the first million dollars’ worth of  trucking insurance is the most expensive and each incremental amount is cheaper. . . . ” (For more details, go here: http://annaleahmary.com/2015/06/trucking-minimum-liability-insurance-trucker-wages-a-facebook-conversation/ )”

Additionally, I have been having online conversations with truckers and have not found any evidence to verify the validity of that $20,000 estimate. Many people in the industry pooh-pooh safety advocacy which they consider based merely on emotion. But do they hold themselves to the same standard and insist on FACTS?

I am certainly motivated strongly by emotions to be in this quest for safer roads for the long haul. But I hope that I am basing my statements and my advocacy on facts and logical reasoning. In fact, I am not content to accept at face value statements by the trucking industry which influence both those whom they represent and also lawmakers who make decisions on truck safety legislation. I am, therefore, concerned about decisions being made on matters which impact victims of truck crashes and which quite possibly may be impacted by misinformed fears.

Because I feel so strongly about getting to the bottom of this question, I have spent many hours this week trying to find out what the new premiums will actually be for truckers if the minimum liability level is eventually raised. In order to educate myself on this topic, I have spoken or emailed with:

  • Todd Spencer, Executive Vice President of OOIDA–the Owner-Operator Independent Drivers Association (awaiting a response from him)
  • National Association of Insurance Commissioners (who explained to me that as liability limits go up, rates go down. He also told me that insurance companies are required by law to file their rate tables with the state and that I should be able to contact a state department of insurance and ask for that information. He said that the rate tables would list the options for liability limits and that each level would indicate a figure which would be a multiplier–to be multiplied by the trucker’s base rate in order to find out the new premium at higher levels. I have yet to get access to these tables.)
  • North Carolina Department of Insurance (still have to check with the Property and Casualty Division)
  • Numerous insurance agencies
  • Several truckers, including: http://annaleahmary.com/2015/06/trucking-minimum-liability-insurance-a-facebook-conversation-with-truckers-continues/

Many independent owner operators are concerned that they would bear the brunt of increases — being at a disadvantage to the larger self-insuring trucking companies. FMCSA’s rulemaking addresses this issue. http://www.landlinemag.com/Story.aspx?StoryID=28110#.VXozEPlViko

Along that line, please read this paper written by an independent owner operator:      Tilden Curl Paper on Trucker Insurance

Finally, I contacted FMCSA, to whom, on May 5, 2014, we originally presented our petition request for raising the minimum liability. At that time, they indicated that in order to get access to proprietary insurance information to determine estimated premiums they would have to initiate the rulemaking process–which they did in November 2014.

However, when I emailed FMCSA today to find out if they had gotten access to that proprietary information, they let me know that they did not yet have the information to estimate the increase in insurance premiums. In order to get that information, they have recently published a rulemaking entitled “Confidential Business Information,” which would “help encourage insurance companies to share some of their proprietary information” for use in the agency rulemaking process–without disclosing confidential information to the general public.

The evident lack of transparency really bothers me, especially with all of the rumors going around–rumors which are swaying decisions and actions that impact life & death matters.

Meanwhile, who pays the price for this issue being stuck in limbo? Some would claim that, “In the end, if minimum liability insurance is increased to $4.2 million, the only winners would be the trial lawyers and large motor carriers – with small-business trucking suffering an expensive, wildly burdensome and completely unnecessary mandate.” – See more at: http://www.landlinemag.com/Story.aspx?StoryId=25702#.VXo3XvlViko

Really? What about those who already bear the brunt of unexpected, unnecessary tragedy and untimely death? Aren’t they the ones that the insurance is intended to benefit?

 

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photo of headstone

Trucking Minimum Liability Insurance; A facebook conversation with truckers continues

To follow my facebook conversation with some truckers, go here:  https://www.facebook.com/TruckersUnitedUSA/posts/1575533959380841

Feel free to jump in the conversation. I think that I will need to chew on this one for awhile and figure out where to go next with this.

Check out Tilden Curl’s (an independent owner-operator trucker) thoughts on Minimum Liability Insurance and see what you think:  Tilden Curl Paper on Trucker Insurance

46 Mary 10.41 am May 4 2013

Mary selfie at 10:41 a.m., May 4, 2013

Crash was at 1:58 p.m., May 4, 2013

47 Mary's braids 006

Mary’s braids, saved by a nurse