The American Bus Association (ABA) applauded last week The Federal Motor Carrier Safety Administration’s (FMCSA) recent decision to withdraw its proposal to increase insurance limits on motor coaches and trucks.
FMCSA announced its proposal in November 2014, but decided to withdraw it after reviewing public comments, determining there was not enough data to support increased rates.
The FMCSA can legally set insurance rates at or above the minimum levels established by Congress.
The current motor carrier limit is $750,000, a rate fixed by Congress in 1980, although many carry more.
“ABA continues to weigh in on the issue of insurance minimums with FMCSA, including through the agency’s Motor Carrier Safety Advisory Committee, on which ABA sits,” ABA President and CEO Peter Pantuso said. “While some carriers do have higher insurance above the minimum $5 million, we believe it is an individual carrier’s decision on what levels to carry. The individual companies are in the best position to determine what level of insurance is appropriate to address safety risks and protect the assets of their company.”
ABA fought the rate increase proposal from the beginning. It created industry partnerships to conduct research and encouraged Congress to pass the Fixing America’s Surface Transportation Act.