The current financial responsibility minimum of $750,000 for motor carriers is inadequate to meet the costs of some crashes, according to a Federal Motor Carrier Safety Administration report released April 18.

The minimum injury and property damage insurance level for trucking companies would rise nearly 500% to $4.4 million from the current $750,000 under a measure proposed by a congressman who said the current level is insufficient to protect crash victims.

The move by Rep. Matt Cartwright to force all motor carriers to increase their minimum injury and property damage insurance coverage by almost 500% is a misguided solution in search of a problem.

In speaking with hundreds of trucking company executives over the course of my career, I’ve noticed two distinctly different mentalities when discussing insurance: There are those who buy insurance, and there are those who manage risk.

Fleets should expect rising insurance premiums, especially for property/casualty and workers’ compensation lines, executives and insurance brokers said.

If some enterprising psychologist hasn’t done so already, an intriguing study could be conducted on why so many otherwise intelligent people have never managed to read all of a warranty, a homeowner’s insurance policy or even the instruction manual that came with the latest piece of pricey electronic equipment.

Michael Card, second vice chairman of American Trucking Associations, urged insurance underwriters in London last week to re-enter the U.S. trucking market.

The Federal Motor Carrier Safety Administration told carriers last week that letters warning about possible loss of operating authority after notifying the agency of cargo insurance cancellations were sent in error.

The Federal Motor Carrier Safety Administration said motor carriers that received notices of investigation for revocation of authority based on cancellation of their cargo insurance policies on or after March 21 “need not respond to such letters if they have a service date of Feb. 19 or after.”