Semi Truck Insurance minimums have been too low for too long
29 years. That is how long it has been since the minimum federal motor carrier insurance requirements have been raised. I knew these levels were old but not that old. Steve Gursten makes a great point about these levels in today’s present value dollars in his Michigan Auto Lawyers Blog.
“According to the act, the minimum insurance standards for interstate trucks range from $750,000 for a basic truck to $5 million for trucks carrying hazardous materials. Keep in mind that $750,000 in 1980 equals just under $2 million when adjusted for inflation in 2009 — and is worth only $292,000 in today’s dollars.
According to the Consumer Price Index:
• $750,000 in 1980 equals $1,921,811 when adjusted for inflation in 2009, and is worth only $292,693 today.
• $1 million in 1980 equals $2,562,415 when adjusted for inflation in 2009, and is worth only $390,257 today.
• $5 million equals $12,812,075 when adjusted for inflation in 2009, and is worth only $2,491,933 today.”
With the costs of medical treatment skyrocketing, it is absolutely time to revisit these requirements. I am sure the trucking lobby will cry about this, on top of fuel costs will drive some companies out of business, but read some of the examples in Steve’s post and tell me what is more important.
