The cost of insurance for trucking companies has seen a significant increase in recent years, with fuel, maintenance, and insurance being the top three carrier expenses. A new law in New Jersey is set to raise the insurance cost for carriers, requiring them to have $1.5 million in liability coverage for vehicles over 26,000 pounds, compared to the current standard of $750,000.
Joe Schreiner, Executive Vice President of Sales at Reliance Partners, discussed the implications of this law on a recent episode of WHAT THE TRUCK?!? He highlighted that the trend may spread to other states, potentially impacting interstate carriers as well. The long-term effects of this law may lead to some motor carriers going out of business and forcing others to take on additional risk to finance their premiums.
As insurance rates continue to rise, insurance companies are facing challenges with reinsurance and capacity for insurance hardening. With the possibility of more states following suit and new regulations from the Department of Labor, the trucking industry is poised for a tumultuous period in the coming years. To learn more about Reliance Partners, visit their website.
