Commercial Auto Insurance to Increase due to Emissions Standards
72Big-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.