Western Truck Insurance Archives

Lawmakers Looking to Get the Younger Generation Behind the Wheel

May 23, 2023May 24, 2023neilson

As part of a requirement under the bipartisan Infrastructure Investment and Jobs Act (IIJA), in 2022, the Federal Motor Carrier Safety Administration (FMCSA) established the Safe Driver Apprenticeship Pilot Program (SDAP). The goal of the three-year program is to help individuals ages 18, 19, and 20 explore interstate trucking careers and help trucking companies hire and train new drivers.

The program was started to help address the truck driver shortage in our country. The trucking industry is currently facing a shortage of more than 78,000 truck drivers coupled with a need to hire 1.2 million new drivers over the next decade to meet increasing freight demands, according to the American Trucking Associations (ATA).

Under the SDAP, a maximum of 3,000 drivers can participate in the program at any one time; however, there have been fewer than a dozen enrollees. The program’s failure is because of extra requirements by the U.S. Department of Transportation (DOT) that were not included in the original law.

Bill Introduced to Get Safe Driver Apprenticeship Pilot Program on Track

To help get SDAP back on track, Congressmen Rick Crawford (R-Arkansas) and Henry Cuellar (D-Texas) urged the DOT to take corrective actions that would improve participation in the SDAP and required DOT to provide Congress detailed reports on SDAP’s status and corrective actions taken to improve participation.

These changes directs the Secretary of Transportation to move forward with regulations to allow 18- to 20-year-old commercial motor vehicle (CMV) drivers to operate across state lines if the data does not demonstrate that those in the IIJA pilot program drive less safely than other CMV drivers.

“Building a 21st century supply chain requires a strong, vibrant, and growing trucking workforce,” said ATA President and CEO Chris Spear. This update will bolster new career pathways into interstate trucking while promoting safety and training standards that far exceed the bar set by states today. Congressmen Crawford and Cuellar’s efforts offer a timely and essential trucking workforce and supply chain solution, built off years of broad bipartisan Congressional support. By directing DOT to steer the Program back to the course Congress originally intended, and providing a path forward to a new trucking workforce to safely enter the industry, this bill will ensure that trucking has the talent it needs to meet the economy’s growing freight demands in the years to come.

About Western Truck Insurance Services

Western Truck Insurance Services is an insurance brokerage specializing in commercial truck insurance. We know this stuff and want to make sure you do too. Our clients appreciate our dedication to finding competitive rates and offering unparalleled service beyond excellent insurance options. They also value how our state-of-the-art automation provides lightning-fast truck insurance quotes, customer service, insurance certificates, and coverage changes. Contact us today at (800) 937-8785 to learn more.

FMCSA Proposes Changes to Its Safety Measurement System

May 16, 2023May 16, 2023neilson

The Federal Motor Carrier Safety Association (FMCSA) in February announced proposed changes to its Compliance, Safety, Accountability (CSA) program to reduce and prevent crashes. Public comments on the proposed changes are due this month.

The FMCSA’s goal is to ensure greater consistency in results by holding similar carriers to the same standard, regardless of how their safety issues are documented; improve the quality of the data; and help motor carriers better understand their results and how to use them to adopt safer behaviors.

The Safety Measurement System (SMS), the CSA enforcement tool, currently analyzes motor carrier safety data — violations, crashes, and other metrics — to assist in identifying high-risk motor carriers. The proposed CSA changes would not affect the data sources but, rather, how the data are used. According to the FMCSA, some of the revisions include:

Move the violations and crashes that fall under what is now called “Basics” to a new set of “Safety Categories.” The categories will include unsafe driving, crash indicator, hours-of-service compliance, vehicle maintenance, hazard material compliance, and driver fitness.
Split vehicle maintenance into two categories: (1) “Driver Observed” – what a driver should detect pre- or post-trip and (2) the “Other” category, which will include all vehicle maintenance violations.
Reorganize roadside violations. Categorize 973 violations into 116 groups, with each group including violations for similar safety behaviors, to prevent multiple violations cited for a similar underlying issue. For example, if an officer cites a motor carrier during a roadside inspection for two or more violations from the same violation group, it is attributed to the group as a whole and scored only once.
Simplify severity weight slimdown to no more than 1 to 10 weighting of violations.
Adjust some of the intervention thresholds that identify companies for possible intervention.
Use a proportionate percentile for the exact number of inspections and crashes rather than cutoffs in the SMS established by safety event groups. This is designed to have the carrier’s percentile impacted by its events.
Update utilization factor from 200,000 to 250,000 vehicle miles traveled (VMT).
Segment driver fitness into “straight trucks” and “combination” carriers.

If and when these changes go into effect, it’s important to know what to expect so you understand how these proposed revisions will impact your safety score – up or down. You can visit CSA Prioritization Preview for more information.

About Western Truck Insurance Services

90-Day Truck Inspections: Part II

April 18, 2023April 26, 2023neilson

In a previous article, we discussed the requirement for daily vehicle inspections by the U.S. Department of Transportation’s (DOT) Federal Motor Carrier Safety Administration (FMCSA). In this article, we will look at the requirements for 90-day inspections, as required by the state of California.

If your truck has a GVW (gross vehicle weight) rating of 10,000 lbs. or more in California, it must be inspected every 90 days. Known as a BIT (Basic Inspection of Terminals) inspection, it’s essentially the same as DOT’s annual inspection requirements. Even if you lease your trucks, you are responsible for BIT inspections and recordkeeping. The California Highway Patrol (CHP) will ask to see your records for the inspections done by a mechanic during an audit.

What Items Are Inspected?

BIT inspections ensure the safe operation of regulated vehicles by motor carriers. During the 90-day inspection the following items may be inspected:

Brake adjustment
Brake system components and leaks
Steering
Suspension
Tires and wheel
Fuel system
Vehicle connecting devices (fifth wheels, kingpins, pintle hooks, etc.)
Exhaust system
Frame (cross members, fasteners, tire clearance, and slider-rail)
Safety Items (triangles, horns, speedometer, seat belt, mirrors, etc.)
Lighting devices (tail, brake, back up, license, markers, flashers, etc.)
Windshield wipers
Ensure proper lubrication
Inspect for leaks (oil, grease, coolant)
Tread depth is measured and recorded on the report
Brake lining is measured and recorded on the report
Unit is stickered per state and federal regulations (49 CFR §396.21(a))
Report is filled out per state and federal regulations (49 CFR §396.17(c)(2))

Each 90-day inspection report at minimum must include:

Identification of the vehicle, including make, model, license number, company vehicle number, or other means of positive identification.
Date and nature of each inspection and any repair performed.
Signature of the motor carrier’s authorized representative attesting to the inspection and to the completion of all required repairs.

About Western Truck Insurance Services

DOT-Compliant Vehicle Inspections: Part I

March 20, 2023March 20, 2023Bob Holtzman

Over the next few articles, we will review vehicle inspection requirements for commercial trucks as required and endorsed by the U.S. Department of Transportation’s (DOT) Federal Motor Carrier Safety Administration (FMCSA). In this article, we will review daily vehicle inspections.

Drivers must conduct inspections at the beginning and end of each shift and on each vehicle used and complete a driver’s vehicle inspection report (DVIR). A DVIR is used to notify a driver’s company about any unsafe or missing equipment on the vehicle. It’s an integral part of a systematic and compliant vehicle maintenance program. Before anyone else can drive the vehicle, the company must repair the defect(s).

Who Is Required to Fill Out a DVIR?

The DVIR rules apply to drivers of commercial trucks (and buses) weighing 10,001 pounds or more.

DVIR Exemptions

Certain types of vehicle operators are exempt from DVIR inspection rules:

Driveaway-towaway operations, in which the vehicle or trailer being towed is the commodity being transported
Motor carriers with only a single commercial vehicle
Private motor carriers that transport passengers but not as a business operation

What Does the DVIR Include?

The DVIR should include the following information:

Date
Vehicle identity (fleet unit number, license plate number, etc.)
Signature of the driver who filled out the form
Signature of the mechanic or other person who repaired the vehicle (or decided that repair was not needed)
Signature of the next driver of the vehicle to acknowledge that the repair was done or not needed

Vehicle Parts to Include in the Inspection

Each DVIR must include any defects found on the following parts and accessories:

Service brakes (including trailer brake connections)
Parking (hand) brake
Steering system
Lights and reflectors
Tires, wheels, and rims
Horn(s)
Windshield wipers
Rearview mirrors
Coupling devices
Emergency equipment (fire extinguisher, reflective triangles, spare fuses)

If a driver or company violates the DVIR rules, the penalties for violations are significant: up to $1,270 per day for failing to complete a DVIR when required, up to $12,700 for falsifying a DVIR to hide a safety defect, and up to $15,420 for failing to repair a reported safety defect.

About Western Truck Insurance Services

Tips for Commercial Truck Drivers: Making Safe Right Turns

March 8, 2023March 16, 2023Bob Holtzman

Commercial trucks are difficult to maneuver and stop. If a large truck and automobile collide, the accident could be catastrophic. Instances of accidents occurring include when truckers are making a right turn. Other vehicles, for example, attempt to squeeze along the right side of a truck to pass or make a right turn while a big rig is making the turn. In addition, when there are tight turns (often with obstacles like poles in the way), a commercial truck driver may swing outside the lane – either into the left lane or slightly over the double yellow lines into oncoming traffic – to orchestrate the turn. The swinging turn error may result in a rollover crash when it collides with an oncoming vehicle or a side-swipe of a passenger vehicle caught in the blind spot while attempting to pass.

The safety rules of commercial motor vehicles are clearly outlined, including when making right turns. Here are several driving trips to serve as a reminder for all truckers when making right turns:

Know well in advance when you’ll be making a right turn.
Give yourself at least 100 feet before the intersection to:
- Start with the truck and trailer in the right line
- Activate the right turn signal early to alert other drivers of your intention; don’t cancel the signal until you have completed the turn
- Check your mirror on the left side for traffic
- Proceed slowly
As you approach the intersection, keep the trailer in the right lane to block the road from cars trying to pass you on the right side as you pull slightly to the left to begin the right turn.
Do not swing wide left and cross over dividers. If you have to cross over into the oncoming lane you’re turning into, wait for any vehicles in that lane to pass by.
Never back up to complete a turn.

Watch your trailer every time you’re making a turn. The most common mistake new drivers make is forgetting to watch their trailer. If you’re unaware you hit something, like a stop sign, for example, you may be cited by the police for distracted driving and property damage.

About Western Truck Insurance Services

How DOT Inspections Are Used for Insurance Underwriting

February 14, 2023February 14, 2023Bob Holtzman

Information collected about a transportation carrier during a routine inspection at weigh stations is posted and kept on the Department of Transportation (DOT) website and available to the public. Insurance company underwriters utilize this data when evaluating a risk and determining account acceptability and pricing.

Why Are DOT Inspections and Compliance So Crucial for Insurance Underwriting?

There is a great deal of industry and insurance data available to support a strong correlation between safety scores and crash events. In fact, underwriters put as much evaluation weight on safety scores as they do on drivers and loss histories.

Underwriters will look at out-of-service rates (driver, vehicle, hazmat) and compare them with the national average, safety ratings, and the seven basic alerts from FMCSA (unsafe driving, crash indicator, hours-of-service compliance, vehicle maintenance, controlled substances and alcohol, hazardous materials compliance, and driver fitness). If, for example, a trucking company has as few as two out-of-service alerts on its record for the last two years, many insurance companies will decline to quote the account. Others may offer a higher-priced quote that is too expensive for the carrier to pay.

The poorer the roadside DOT inspections, the more likelihood there is for onsite intervention. Not only do poor DOT scores impact insurance, but your trucks will also be stopped more, causing delivery delays.

It’s also important to note that safety scores are admissible in court when there is an accident and subsequent litigation. In addition, settlements and jury awards tend to be higher when safety scores are substandard.

Strategies for DOT Compliance

Following are several strategies to implement to help with DOT inspections and safety scores:

Communicate with drivers about the impact of safety scores on your operation
Reward drivers for passed inspections (an annual safety bonus, a gift card, and recognition)
Discipline drivers for failed inspections
Check the Safety Measurement System (SMS) website periodically to review your score
Analyze inspections to determine where the majority of issues arise and address them
Ensure MCS-150 is filed as required and accurately reflects your account
Hire right – view your drivers’ prior inspection history
Challenge incorrect inspection results – DATAQ

About Western Truck Insurance Services

Inside Finance/Lease Gap Coverage As Part of Physical Damage Truck Insurance

February 6, 2023February 15, 2023Bob Holtzman

Our last article looked under the hood of Physical Damage Truck insurance, which provides owners/operators of truck and trailer equipment with collision and comprehensive coverage. Collision coverage protects you in the event of a collision or overturn, while Comprehensive coverage protects you against most other physical damage losses. These losses could be caused by fire, theft, vandalism, or animal contact.

You can also add Gap coverage if you are financing or leasing your truck. It pays the difference between the actual cash value (ACV) of the truck and the current outstanding balance on your loan or lease. In fact, the lessor or lender will require you to purchase Physical Damage Truck insurance when financing your vehicle. You should also consider purchasing Gap coverage at the same time.

How Does Gap Coverage Work?

Let’s say you took a loan from the bank on a truck for $50,000. During the first year, you drove 80,000 miles. You were involved in an accident and had a total loss. Your insurance company determined that the truck was worth $35,000 at the time of the loss, but you were still responsible for the outstanding $40,000 on the loan. If you had Gap insurance, your coverage would have paid you the $35,000 value (less your deductible) and another $5,000 for the coverage gap.

It’s important to note that finance/lease Gap coverage does not cover carryover balances, lease penalties, late payments, and extended warranties. In addition, to be eligible for Gap coverage, you must be the original owner of the financed or leased vehicle, and the truck must be purchased from a new dealer rather than a previous owner.

About Western Truck Insurance Services

Under the Hood of Physical Damage Truck Insurance

January 18, 2023Bob Holtzman

Your truck and trailer equipment are the lifeline of your business and represent a significant investment. If your truck is damaged in an accident or fire or vandalized or stolen, you’re off the road, and your business is temporarily sidelined. Physical Damage Truck insurance steps in to get your truck and equipment repaired or replaced, and you back behind the wheel.

Physical Damage Truck insurance insures vehicles against a variety of damages, such as collision, vandalism, fire, and theft.

Policy Options Available

You can choose to get coverage on a specified-perils basis or purchase a policy with collision and full comprehensive insurance. With specified-perils coverage, you’re protected against only those losses your policy specifically lists. While this option costs less than comprehensive-based coverage, the difference is not significant enough to risk having a claim denied because the peril is not listed in the policy. We almost always recommend going for comprehensive coverage, so you are not left with hefty repair bills or, even worse, the cost of a new truck.

You also have a choice of deductibles for both collision and comprehensive coverage. The deductibles you choose (typically set at $1,000) will depend on how much you want to pay out of pocket before coverage kicks in. The higher the deductible, the lower the premium, as you will bear more repair costs. We can discuss this with you in further detail.

Coverage Limits

Ensure you buy enough coverage to cover the value of your truck and equipment. When you purchase Physical Damage insurance, most heavy truck insurance companies require you to submit a “stated amount,” which is your best estimate of your vehicle’s current value. The stated amount should consider the age and condition of your vehicle, mileage, permanently attached equipment, special equipment you’ve added, vehicle upgrades, and engine or major component rebuilds.

Some insurance companies will provide coverage on an actual cash value (ACV) basis, calculated based on the average of your vehicle’s Blue Book, retail, resale, and trade-in values. Once those figures are input and averaged out, the vehicle’s ACV is determined.

The accuracy of stated amounts is critical because it affects how insurance companies process and pay claims. Following an accident, an insurer will pay the lesser of the stated amount and the actual cash value of the vehicle.

Towing Coverage

Towing, recovery, and storage costs for a semi-truck can be an expensive after-accident expense. Towing to a nearby garage that can repair trucks should be covered by your Physical Damage policy. Also, consider how much reimbursement for towing expenses is included in the policy. If your Physical Damage insurance does not provide enough coverage, you may have to pay a large sum out of pocket.

About Western Truck Insurance Services

Ensure Drivers Have the Right Documents for Compliance

January 9, 2023Bob Holtzman

Although it may not be your favorite aspect of being an owner-operator, paperwork management is a serious responsibility. You must have current documentation at all times, including for yourself as the driver, your truck and trailer, and, if applicable, your motor carrier. Missing documentation has serious consequences, including excessive violations that can negatively impact your business and career.

Ensure that you and all your drivers have the required paperwork in their cabs before being dispatched. This ensures that you will be in compliance with driver or vehicle inspections. Officials who can stop a vehicle and perform an inspection include:

Federal Motor Carrier Safety Administration (FMCSA): Oversight and funding of inspections
Commercial Vehicle Safety Alliance (CVSA): Develops inspection criteria and program
State Troopers: Performs the actual inspection

What Paperwork to Carry

We’ve provided a list of documents below that may be required for your type of operation and depending on the gross vehicle weight of your vehicles. The guideline is for an 80,000-pound tractor-trailer. Make sure you review each state’s requirements so that you’re all set before going on the road. In addition, ensure all documentation and permits are current and valid.

State Driver’s License or Commercial Driver’s License (CDL)
FMCSA Authority Letter
Insurance Card: Proof of insurance must show the effective and expiration dates of coverage
Title & Registration
Medical Card
Unified Carrier Registration [UCR]
Intrastate Authority (if applicable)
Base IFTA License & Decals
Apportion Cab Card (over 26K GVW)
Daily Log
IRS 2290 Heavy Highway Use Tax (over 55K GVW)
Safety Certificates
Bill of Lading
Lease Agreement
EPA Emissions Certificate
Hazmat Paperwork

State Permits, including state-specific documents:

Connecticut Mileage Tax Permit (over 26K GVW) NEW
Kentucky Weight Distance Tax (KYU) Permit (over 59,999 GVW)
New Mexico Mileage Tax Permit (over 26K GVW)
New York HUT (over 18K GVW)
Oregon License & Bond (over 26K GVW)
Oversize/Overweight Permit (if applicable)

We recommend keeping all of your documentation (except your CDL and medical card) in a three-ring binder where you can easily add new information and remove expired certificates.

Make copies of everything; you need to carry the originals of your CDL, registration, and specific certificates. Leave the duplicates at the office or home. You may even want to use your phone to photograph or a printer to scan each document as a digital file that you can access on the road if your binder is damaged.

In addition, ensure that none of the documents have expired. This is the most common reason why inspections fail. Expiration dates differ, so it’s easy to overlook one.

About Western Truck Insurance Services

ATRI Looking to Collect Data on the Impact of Predatory Towing in Trucking Industry

December 5, 2022December 5, 2022Bob Holtzman

The nonprofit research organization American Transportation Research Institute (ATRI) recently issued a news release calling for motor carriers and drivers to complete a survey so it can analyze the impact of predatory towing in the trucking sector.

The survey asks drivers and motor carriers about the most common types of predatory towing, what fees or delays they consider predatory, and in which states they have encountered predatory towing. Participants will also be asked to answer more detailed questions about the frequency of towing, which will allow ATRI to quantify the frequency and operational impact of each type of predatory event. According to ATRI, all information gathered will be kept strictly confidential.

“Recognizing its persistent negative impact on the industry, ATRI’s Research Advisory Committee identified the need to better understand this problem as a top research priority earlier this year,” the news release stated.

What Is Predatory Towing?

While most towing companies operate with integrity and legally, some don’t. Predatory towing is any incident where a tow truck provider grossly overcharges, illegally seizes, damages by using inappropriate equipment, or refuses to release a truck and/or cargo.

A predatory towing company, for example, will move in on an accident and tow a truck without consent. Bills issued by predatory towing companies are artificially inflated, with some truckers being charged for equipment that was never present at the accident scene. The costs can range between thousands and tens of thousands of dollars, which can significantly affect insurance premiums for owner-operators and larger carriers.