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Commercial Auto Insurance to Increase due to Emissions Standards

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By econtribwriter


Big-Rigs Commercial Auto Insurance in trouble

There has been a lot of talk lately about the new emissions standards in California for Commercial Trucks. The California Air Resources Board(CARB) voted in December 2008 and passed two new rules regarding the California emissions standards for Big-Rigs. These two new rules are going to dramatically reduce the toxic emissions and global warming pollution from big-rig trucks that run in the state of California. This is going to be bad news for anyone who drives a big-rig truck. In a matter of months owner operators of big-rig trucks will be forced to either over haul their existing trucks and retro-fit them with costly emission reducing upgrades or they will have to buy a new truck which already has the reduced toxic emitting engines.

CARB's first proposal is that the big-rig trucks improve their fuel-efficiency in order to reduce their global warming emissions. The target in the cross hairs of CARB is the semi tractor which pulls a semi trailer box aka a dry van semi trailer. These semi trailers are generally 53-foot-long trailers pulled by massive tractors. This first proposal alone is geared towards saving 1 billion gallons of diesel fuel annually across the country in 2020. The CARB says that the steep up-front costs of installing fuel efficient technology on the tractors and trailers should be offset by reduced fuel costs over time. I personally believe that this is not the case. With drop in demand for the diesel fuel the diesel manufacturers will likely cut production(supply) and therefore increasing the price of the diesel fuel in line with the proposed savings. With the state of the economy right now and most of the truckers feeling the pinch already, asking them to upgrade their trucks right now is insane. Already, in the state of California more than 50% of the trucking companies have gone out of business due to no work. By imposing these new expenses on an already beat down trucking industry will more than likely cripple the industry and force even more of the remaining trucking companies out of business. Most truckers that are still in business are struggling just to pay their monthly commercial auto insurance premiums.

CARB's second rule is to control smog-forming emissions and particle matter. This rule targets all commercial trucks run by diesel operating on California's roads. This includes but is not limited to diesel-fueled heavy-duty trucks, typical big-rig trucks, school buses, tow trucks, and any other type of commercial truck or auto. CARB estimates that this rule will help prevent 9,400 premature deaths and thousands of hospitalizations for heart and lung disease associated with poor air quality over the next 15 years. CARB estimates that this will save tens of billions in health care costs. I personally would like to see the research done on this. I would also like to see the results of their findings.

How this will effect your Commercial Truck Insurance.

No matter which option you choose whether upgrading your commercial auto with the new emission reducing parts or you go and buy new commercial trucks that already have them on the trucks. Your commercial truck insurance rates will increase because your truck will be worth more and both of these options leave you with higher physical damage rates.

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Billy Bob  says:
6 weeks ago

How can California expect the truckers to pay for this extra cost on their trucks? With the economy the way it is. this is horrible.

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