If you’re a CDL license holder or freight company, your insurance costs might be increasing in the new year. The Federal Motor Carrier Safety Administration is planning to raise insurance minimums for freight drivers in 2015. A proposal was submitted to Congress in December 2014 that will update 30-year-old insurance requirements.
Since 1985, freight insurance minimums have been set at $750,000 for general freight, $1 million for hazmats, and $5 million for more dangerous hazmats. When Congress told the Department of Transportation in 2012 to raise the general freight minimum to $1 million, the DOT reevaluated all minimums and found that increasing medical costs and life expectancies demand a complete insurance overhaul.
The DOT compiled an industry-wide analysis on the ideal insurance rates for CDL carriers. You might be disappointed with the results. The DOT is now considering using the Consumer Price Index to set new insurance rates, which could mean a general freight minimum of $1.6 million, hazmat minimum of $2.2 million, and dangerous hazmat minimum of $10.8 million.
The good news is that you can give feedback on the proposed changes. Before February 2015, the FMCSA wants comments from industry leaders. They want to know what these changes would do to premium costs and how often the current minimums cover the actual costs of an accident. The agency also wants to know how this type of increase would affect large and small CDL carriers.
If you are looking for a new or improved insurance policy for your CDL drivers, Kipper Insurance may be able to help. We strive to help organizations find the right commercial truck and auto policy for them. We will simplify the process to make it as easy and straightforward as possible. Contact us today to receive a no-obligation quote or to find out which policy is right for you (760)471-2200.
Photo Credit: Ronnie Vonner