Operating authority for motor carriers is available for $300. However, instant-issue trucking insurance has flooded the market, allowing unvetted individuals on the road. Legacy carriers opt for captives with real safety programs. Subprime insurers cover high-risk carriers, contributing to lower industry standards. The federal minimum liability coverage of $750,000 is inadequate for modern crash costs, leaving victims and taxpayers to bear the burden. Chameleon carriers exploit instant-issue policies to evade accountability, while broker bonds remain insufficient for current volumes. To address these issues, a return to old-school underwriting, realistic coverage limits, and scaled broker bonds are necessary to ensure safety and accountability on the roads.

Source: https://www.freightwaves.com/news/insurance-was-truckings-last-real-barrier-to-entry-it-collapsed

Read more at Yahoo Finance: Insurance Was Trucking’s Last Real Barrier to Entry. It Collapsed.