Truck Insurance Rates and FMCSA

Truck insurance rates are probably the last thing on the FMCSA’s mind when they institute new safety programs, but FMCSA regulations can have a large indirect effect on the industry.

Commercial trucking is highly regulated for good reason.  Over 45,000 deaths occur each year in motor vehicle related accidents and it is estimated that up to 9 percent of those accidents involve commercial trucks.

It is therefore the responsibility of several government and private agencies to make sure that roads and highways are safe for all drivers, including truck drivers.  The United States Department of Transportation has established several of these agencies, such as the Federal Motor Carrier Safety Administration, or FMCSA.

The Federal Motor Carrier Safety Administration

The purpose of the Federal Motor Carrier Safety Administration, or FMCSA,  is to improve the safety commercial motor vehicles and truck drivers through the creation and enforcement of various safety regulations.  They do so through their Office of Analysis, Research and Technology (ART).

This office is responsible for collecting research data related to commercial vehicle traffic safety and then analyzing it to help them draft legislation to improve overall traffic safety.  They have several programs in the works, but in one in particular is considered highly controversial among the trucking industry community: The Compliance Safety Accountability 2010, or CSA 2010.

CSA 2010

This program is designed to measure and improve traffic safety through data analysis and implementation of new safety criteria.  Drivers and motor carriers are assessed and given a safety score between one and one hundred.  These scores are currently public record, and are fully accessible to insurance companies.

Advocates for the trucking industry, such as the Owner Operator Independent Driver Association, argue that these scores are unfairly weighted and can cause undue insurance rate increases.  The main complaint is that the score is affected by any traffic incident, regardless of fault or conviction, creating a vague and misleading system of evaluation.

Motor carriers operating motor vehicles transporting hazardous materials, hazardous substances or hazardous wastes. For-hire motor carriers operating motor vehicles transporting property in interstate or foreign commerce. For-Hire motor carriers transporting passengers in interstate or foreign commerce. Private motor carriers domiciled in Mexico transporting property in interstate or foreign commerce.
Financial Responsibility: Having insurance policies or surety bonds sufficient to satisfy the minimum public liability requirements   { Royalty Truck Insurance can provide you with both.  You can receive a quote online http://royaltytruckinsurance.com/?id=truck-insurance-quote or call us at Toll Free: 1-866-989-8998 }
Public Liability:  Public Liability means liability for bodily injury, property damage and environmental restoration.
Environmental Restoration:  Environmental Restoration means restitution for the loss, damage, or destruction of natural resources arising out of an accidental discharge of toxic or other environmentally harmful materials or liquids
Definitions of terms relating to FMCSA financial responsibility regulations can be seen at:
http://www.fmcsa.dot.gov/rulesregs/fmcsr/regs/387.5.htm
and/or
http://www.fmcsa.dot.gov/rulesregs/fmcsr/regs/387.29.htm
Requirements: Motor carriers must have at least the minimum amount of insurance required by law. A list of the minimum requirements can be seen at:
http://www.fmcsa.dot.gov/rulesregs/fmcsr/regs/387.9.htm
and/or
http://www.fmcsa.dot.gov/rulesregs/fmcsr/regs/387.33.htm
Proof:  Proof of financial responsibility shall be maintained at the motor carrier’s principle place of business. All vehicles operating in the U.S. must have a legible copy of the proof of the required financial responsibility.  All motor vehicle in which there is no evidence of financial responsibility shall be denied entry into the U.S.
Examples of Proof:
Form MCS-90
Form MCS-82
Form MCS-90B
Form MCS- 82B
For more information or clarification please call Royalty Truck Insurance 1-866-989-8998