It has been a busy month in Washington DC for motor carriers, consumers, insurance agencies, owner/operators, and more. With the proposal of two new bills, it is likely that the entire trucking industry will experience some dramatic modifications in the future. Changes can be seen from trucking liability requirements to interstate driving age limits.
Trucking Liability Requirements
In 2019, the INSURANCE Act was introduced to draw attention to the fact that the current trucking liability requirements had not been adjusted for inflation since 1980. As written in the 2019 initial bill, “According to the U.S. Bureau of Labor Statistics, the amount of $750,000, set in 1980 (the year of enactment), would have the same purchasing power as $4,923,153.29 in 2019, if the amount was raised to account for medical-cost inflation.”
On April 15, this bill was reintroduced with hopes of raising the trucking liability minimum for motor carriers to reflect the ever-increasing cost of medical bills. Also written into this bill is the requirement to adjust the minimum every five years to reflect inflation.
While several safety groups are on board with the proposed bill, there is one group in particular that is opposed to the change. Owner-Operator Independent Drivers Association (OOIDA) has voiced that the change will not improve highway safety and medical costs are already being covered by the current trucking liability requirements.
Trucking Liability Requirements
In 2019, the INSURANCE Act was introduced to draw attention to the fact that the current trucking liability requirements had not been adjusted for inflation since 1980. As written in the 2019 initial bill, “According to the U.S. Bureau of Labor Statistics, the amount of $750,000, set in 1980 (the year of enactment), would have the same purchasing power as $4,923,153.29 in 2019, if the amount was raised to account for medical-cost inflation.”
On April 15, this bill was reintroduced with hopes of raising the trucking liability minimum for motor carriers to reflect the ever-increasing cost of medical bills. Also written into this bill is the requirement to adjust the minimum every five years to reflect inflation.
While several safety groups are on board with the proposed bill, there is one group in particular that is opposed to the change. Owner-Operator Independent Drivers Association (OOIDA) has voiced that the change will not improve highway safety and medical costs are already being covered by the current trucking liability requirements.
New Interstate Driving Age
With truck drivers in short supply, support grows to allow CDL holders 20 years old and younger to cross state lines. This proposed bill would work as an apprenticeship program for those drivers that are 18 to 20 years old. To qualify for the apprenticeship, drivers must go through extensive training, their trucks must be equipped with the latest technology, and an experienced driver must be present at all times while traveling across state lines.
Currently, in 49 states, individuals that fall into the 18- to 20-year-old category are still eligible to receive their CDL but are only allowed to operate a commercial vehicle within their state (intrastate commerce). In addition, drivers under the age of 21 are prohibited from hauling intrastate freight if that freight was brought in from out-of-state.
Contact Us
How will trucking liability requirements and a new interstate driving age affect you? Contact Morgan, Trevathan & Gunn Insurance, Inc. today to see how all of this may interrupt the operations of you and your company. We want to help you succeed no matter what changes are thrown your way.