Commercial Truck Insurance Rates And the Effect of The FMCSA

There are several factors that can influence commercial truck insurance rate. They tend to vary from state and state, as states have different laws regarding limitations of coverage.

There are also governing bodies on the federal level that determine traffic safety measures that can impact insurance rates. It is important for all commercial truck drivers to understand what these agencies do and how they can affect the trucking industry and truck insurance industry as a whole.

The FMCSA

The FMCSA, or Federal Motor Carrier Safety Administration, is a federal agency that was established January 1st, 2000, and is the most recent agency created that impacts the United States trucking industry. It began as a separate administration within the U.S. Department of Transportation and was previously under the Federal Highway Administration.

The stated mission of the FMCSA is to improve the safety of commercial motor vehicles and truck drivers by enacting and enforcing safety regulations. They are currently located in Washington, D.C. and employ more than 1,000 people across the nation.

The FMCSA’s Office of Analysis, Research, and Technology is responsible for conducting studies and analyzing data relevant to traffic safety and environmental impact in relation to commercial trucking.

While more of a safety regulatory industry, their programs and standards indirectly effect the truck insurance industry.

FMCSA Effect on Truck Insurance

The FMCSA can have a direct effect on the rates of commercial truck insurance. The latest measure to improve commercial motor vehicle safety, CSA 2010, is a comprehensive program administered by the FMCSA to improve safety by assigning drivers a score to determine their safety rating.

The scores do not take fault or conviction into account and can be misleading. These scores are public record and can thereby be used by insurance companies to alter insurance rates based on what may be faulty criteria.

Since their legislation can have a ripple effect throughout the entire commercial trucking industry, it’s important to have a handle on current workings related to the FMCSA.