U.S. Agency May Soften Insurance Requirements for Canadian Truckers

The U.S. agency that oversees trucking safety is on the verge of allowing Canadian-based truckers to hold independent insurance coverage from Canadian insurers.

In a recent proposal, the Federal Motor Carrier Safety Administration suggests changing current rules that require Canadian trucking carriers to either have coverage from a U.S. company, or have additional U.S. coverage “fronting” a Canadian policy.  If passed, the new rules would accept Canadian-based policies as sufficient. The current regulations are part of financial requirements outlined in the FMCSA’s Minimum Levels of Financial Responsibility for Motor Carriers.

The switch could save trucking carriers up to $30,000 (US) over the next 10 years, according to the FMCSA.

Both the Canadian government and Canadian trucking organizations have lobbied for the change for years–the proposed changes are in response to Government of Canada petition, which argued that “it has recognized and accepted noncommercial motor vehicle liability policies issued in either country as acceptable proof of financial responsibility,” according to a Federal Register report.

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