Any industry that can possibly present a danger to the general public has to be highly regulated by state and federal laws in order to minimize accidents and ensure to the best of our abilities that everyone working within the industry is competent.
If you're a motor carrier or independent owneroperator who's ever purchased commercial truck insurance Jarrett Stidham Limited Jersey , you know that there are many state and federal laws that influence the industry.
On top of those, many truck insurance providers have set commercial standards based on these state and federal regulations to add further safety restrictions and specific coverage amounts based on different applications of commercial trucks.
Because commercial trucks operate at very different capacities and haul very different types of cargo, the truck insurance levels required for each can be different, and even different state to state.
To provide uniformity and ensure there are adequate levels of protection to the general public while trucks are on the road hauling dangerous goods, several governing bodies have been created to work to pass legislation that supports safety and proper levels of financial responsibility.
The FMCSA
The FMCSA Hjalte Froholdt Limited Jersey , or Federal Motor Carrier Safety Administration, is a federal agency that was established in the year 2000, making it the most recent governing body in the world of commercial trucking.
The FMCSA is headquartered in Washington DC, employs about 1,000 people nationwide and budgets over 541 million dollars annually to encourage the safety standards of motor carriers and truck drivers in the hopes of reducing accidents and fatalities related to commercial trucking.
The FMCSA has 3 distinct departments related to research Yodny Cajuste Limited Jersey , analysis and technology.
It is the FMCSA's goal to analyze accident trends based on a variety of factors and researches what areas of driver, equipment and technological implementation may contribute statistically to accidents on the road.
The FMCSA then initiates legislation in order to continually reduce such occurrences.
FMCSA effect on Truck Insurance
When new legislation is enacted, the decisions of the FMCSA can directly affect commercial truck insurance levels and rates. To illustrate this, take the FMCSA's latest initiative, CSA 2010. This campaign implements a scoring system for all motor carriers based on equipment upkeep Damien Harris Limited Jersey , statistics and accident information. The scores are public for insurers to research, thereby possibly directly affecting truck insurance quotes for those with substantially higher levels of risk.
The NHTSA
The National Highway and Safety Administration is another governing body that directly affects the trucking industry.
The NHTSA is an older organization that was formed in the 1970s as an agency of the Executive Branch of U.S. government, and exists as a subdivision of the Department of Transportation, (DOT.)
The NHTSA has a less direct affect on the trucking industry than the FMCSA per se, but their actions will evolve the industry and thus affect things like truck insurance rates indirectly. Seatbelt laws Chase Winovich Limited Jersey , crash test dummies, the VIN system--these are all commonplace institutions that were developed by the NHTSA.
The NHTSA generally has more to do with analyzing statistical trends and initiating safety standards through technology to support their findings. Regulations on fuel economy, emissions and environmental standards re largely initiated by the NHTSA, though the FMCSA works in the environmental arena as well.
An example of how the NHTSA affects the truck insurance industry can be seen in their latest workings that may propose speed regulators in large commercial trucks. Their findings indicate that speed limiters implemented in other countries are reducing fatal accidents related to commercial driving.
If passed, commercial truck insurance companies may soon offer discounts or credits for their implementation Joejuan Williams Limited Jersey , as they do with current employee safety programs that have already been implemented by the NHTSA. RFID Blood Monitoring System Market- Trends, Price, Share and Growth Rate from 2017 to 2023 by Infinium · August 30, 2018
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