A bill that would inflate minimum liability insurance for carriers by 566% has returned to Congress.
Rep. Jesus “Chuy” Garcia, D-Ill., introduced the Fair Compensation for Truck Accident Victims Act on Dec. 22. The bill would increase current minimum insurance levels from $750,000 to $5 million. Rep. Hank Johnson, Democrat of Georgia, joined Garcia to introduce the bill.
Although the name differs from previous congressional sessions, this effort is not new. Under the previous name of the SECURE Act, Garcia attempted to increase the minimum amount to $4.9 million in 2019 and to $5 million in 2021. Neither standalone bill came close to passing the House as they only had six and eight co-sponsors. respectively. Rep. Matt Cartwright, D-Pa., has also tried to increase the minimum number several times, starting with an increase to $4.2 million in 2013.
Supporters say the legislation would protect families “from the financial devastation caused by catastrophic truck accidents.”
opposition
Opponents point out that most auto carriers already carry $1 million in insurance, and that the most recent study on the issue found that the current minimum insurance level adequately covers damages in all but 0.6% cases.
While defending against Garcia’s proposed 2021 increase, the Owner-Operator Independent Drivers Association said the bill was driven by trial attorneys.
“It should come as no surprise that Rep. Garcia is working with his attorney allies to significantly enhance existing insurance levels, as they typically receive 30-40% of the settlement against the motor carrier,” OOIDA wrote. “This bill would line lawyers’ pockets at the expense of hard-working truck drivers, and would do nothing to improve highway safety.”
OOIDA, which represents pickup truck drivers, added that the bill would reduce safety, as it would force many safe and experienced truck drivers to stop working.
Regarding the current bill, OOIDA’s Colin Long questioned the timing of its introduction. Garcia introduced the Fair Compensation for Truck Accident Victims Act before Congress left for the long Christmas recess.
“It is disappointing that in the midst of professional drivers working tirelessly to ensure Americans have the best holiday season, Rep. Garcia is pulling an Ebenezer Scrooge and offering this greedy money grab on the bill,” said Long, OOIDA’s director of government affairs.
Other attempts
Previous bills to significantly increase auto carrier insurance minimums never gained traction. However, the House version of the 2021 highway bill included a provision to raise the minimum insurance to $2 million.
House Republicans opposed this increase.
Rep. Mike Bost, R-Ill., said the $1.25 million increase was a penalty for the nation’s truck drivers.
“There is not a single credible piece of research that suggests we need to increase this number, and by all means not by (167%),” Post said.
“A lot of you don’t understand this, but I was born and raised and actually ran a family trucking business for 10 years. I know and understand what they’re going through. I know and understand what they’ve been through in the last year, and all of a sudden I go out and punish them…and it’s true, it’s punishment when there’s no “What justifies raising it to this extent?”
Johnson, who helped introduce the current minimum insurance bill, has called for this provision to be made available in 2021.
“We know there are truck drivers out there that perform a service, but we represent people and people get injured from time to time by these truck drivers, and they deserve to have a level of insurance that protects them,” Johnson said.
Rep. Sam Graves, Republican of Missouri, was insulted on behalf of truckers.
“Just listen to some of these comments about protecting people from these truck drivers… these truck drivers.” I heard that over and over again. “It’s like they’re the enemy, and they’re not,” he said. “And I heard this comment that it’s only going to cost a few extra dollars in insurance premiums. That’s ridiculous. That’s going to put some of these independent operators out of business, because of the amount of money they’re going to have to pay for insurance. It’s going to come down to one simple choice… either You choose truck drivers who are trying to support their families, or you choose a trial lawyer. That’s what it comes down to.
This provision remained in the House version of the highway bill. However, the minimum insurance increase never made it to the Senate version, which eventually became law. LL