Trucking Companies Need More Insurance to Cover Accident Costs
June 17, 2013
A new study shows trucking companies need to carry more insurance to better protect drivers and the public from costs associated with Truck Accident Injuries. The study was conducted by the Alliance for Driver Safety and Security, and it found that 42 percent of crash settlements paid by trucking companies exceeded the minimum insurance coverage level of $750,000.
An Article from The Trucker explained the $750,000 minimum-level insurance coverage was established more than 30 years ago and does not reflect inflation or the rising costs of medical care. The study found this can often put injured victims in jeopardy of having no way to cover their medical costs.
Researchers examined the outcomes of nearly 9,000 crashes over a six year period and found that monetary settlements exceeded the $750,000 minimum insurance limit in 42 percent of the cases.
In these cases, the company must either pay the difference to the victim or file bankruptcy. The latter leaves the victim and taxpayers to cover the expenses resulting from the company or their driver’s negligence.
Only 37.5 percent of crashes would see similar exposure if a $1 million insurance minimum was adopted. Furthermore, the number would plummet to less than 18 percent if a $4 million insurance minimum were mandated.
The Arkansas Personal Injury Lawyers with Rainwater, Holt & Sexton hope the data can be used to better protect people from the dangers posed by underinsured trucking companies.