Several times recently, I have written about the projected inflation adjustment to minimum liability insurance coverages for interstate commercial vehicles. The process continues.
A few days ago, the Federal Motor Carrier Safety Administration issued a 14-page Report to Congress, concluding the following:
1. Current limits are inadequate in covering catastrophic crashes.
2. Simply adjusting existing limits to adjust for healthcare inflation would require raising limits:
a. From the current $750,000 to $3,188,250 for general tractor-trailers, rather than the $4.2 million that was discussed for inflation adjustment since the $750,000 minimum was first set in 1980.
b. From the current $1 million to $4,251,000 for low-hazard hazmat tractor-trailers, e.g., fuel trucks, rather than $4.4 million that was discussed.
c. From the current $5 million to $21,255,000 for high-hazard hazmat tractor-trailers;
d. From the current $1.5 million to $6,376,500 for small buses; and
e. From the current $5 million to $21,255,000 for large buses.
3. “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.”
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