SBF 70 years logo
MenuMENU
SearchSEARCH

NSTA Advocacy in Action — Should FMCSA increase the federal insurance minimums?

The FCMSA is considering an increase in the federal minimum insurance requirements for passenger motor carriers. This is a very important issue for school bus contractors, as these requirements could dramatically affect insurance costs.

by Ronna Weber
May 6, 2015
4 min to read


Ronna Weber is executive director of the National School Transportation Association.

The Federal Motor Carrier Safety Administration (FCMSA) issued an Advance Notice of Proposed Rulemaking (ANPRM) on Nov. 28, 2014, exploring an increase in the federal minimum insurance requirements for passenger motor carriers.

This is a very important issue for school bus contractors, as these requirements could dramatically increase, which would affect insurance costs. Even if you currently carry more than the required minimums, don’t dismiss this issue. FMCSA has suggested that the minimum requirements should increase to as much as $20 million to $25 million for large vehicles — a staggering increase.

As you likely know, school transportation contractors across the country must follow federal regulations when providing transportation services for any trips other than home-to-school. Home-to-school operations are narrowly and literally defined as home-to-school and school-to-home. Thus, a school bus contractor is required under federal law to carry a minimum of $1.5 million in insurance on every vehicle with 15 passengers or fewer and $5 million on every vehicle with 16 passengers or more that they are using for work outside of home-to-school operations (activity trips, field trips, charter work).

A survey of NSTA members found that most companies prefer flexibility, so their entire fleets comply with federal requirements. In addition, while some large NSTA member companies carry higher levels of insurance than required, many smaller companies do not. Given that larger companies obviously have more flexibility, any increase will disproportionately impact smaller carriers.

So how big is the nation’s school transportation industry? School bus carriers, public and private, operate the largest mass transportation fleet in the country. Each day, 480,000 yellow school buses travel the nation’s roads, carrying 26 million children to and from school.

There are currently 90,000 transit vehicles; 40,000 motorcoaches; 7,400 commercial airliners; and 1,200 railroad passenger cars on the nation’s roads, railways and in our airspace today. In fact, the nation’s school bus fleet is 2.5 times the size of all other forms of mass transportation combined.

In addition, school transportation is the safest form of transportation in the country. According to the August 2014 National Highway Traffic Safety Administration Safety in Numbers newsletter, of the more than 30,000 annual deaths from traffic accidents, on average just four per year were students inside school buses. In addition, travel by school bus is 23 times safer than travel with a parent driver and 58 times safer than travel with a teen driver.

FMCSA utilized several bodies of work to research this issue, but none of the studies considered school bus transportation accident or claims data, compared school bus transportation to other types of commercial motor vehicles, or considered the capacity or claims history of major insurers of private school bus companies.

Moreover, FMCSA has done no analysis to determine the impact these significant increases might have on the continued availability of school bus service. NSTA finds this extremely troublesome. School buses are vehicles with unique safety features and a dedicated and skilled driver force that operate in unique environments not readily comparable to all other commercial motor vehicles.

Without the research or data to indicate specific problems showing current insurance levels for school bus operators to be inadequate, NSTA does not support an increase in the federal minimums. In addition, we believe that the lack of school bus-specific data makes it impossible for FMCSA to conduct a reliable analysis of the costs and benefits of any potential increase on the private school bus industry or the school transportation industry at large.

In addition to our concern with the lack of data to support such an increase, we also are troubled by the continued perception and treatment of all commercial motor vehicles as the same. The school bus and its safety record are simply not comparable to other types of commercial motor vehicles and should not be viewed through the same prism. A truck is not a bus, and a motorcoach is not a school bus. School buses indeed have some similarities with other motor carriers, but they also have several fundamental differences, and those differences must be recognized.

The safety of the nation’s schoolchildren is of paramount concern and importance to the school transportation industry. We are always open to making improvements in the interests of safety if those improvements are well vetted and supported by data and science.

Because safety is at the heart of school transportation, any change must be carefully considered and studied to ensure that its implementation would indeed improve safety. NSTA will always oppose proposals that are not in the interest of safety and are not supported by data and science.

UPDATE: A new bill in Congress would prevent the U.S. secretary of transportation from unilaterally raising insurance minimums on the school transportation and motorcoach industries. See story here.

Subscribe to Our Newsletter

More Safety

An orange and white graphic with the cover of HopSkipDrive's 2025 Safety Report and text reading "Seventh Annual Safety Report."
Safetyby StaffMarch 18, 2026

What’s Behind HopSkipDrive’s Near-Perfect Safety Record in 2025?

The alternative transportation provider’s 2025 Safety Report highlights 99.7% incident-free rides, 130 million safe miles, and more.

Read More →
Buyers Guide and Directory thumbnail
SponsoredMarch 13, 2026

2026 School Bus Fleet Vendor Directory & Buyer's Guide

Searching for the right equipment, technology, or services for your school transportation program? This industry guide brings together manufacturers and suppliers across the entire school bus market, all in one place. Download it to find the partners who can help move your operation forward.

Read More →
Portrait of Michael C. Hout, Ph.D., assistant dean and psychology professor at New Mexico State University, featured in a Child Safety Network leadership announcement graphic.
Safetyby News/Media ReleaseMarch 6, 2026

Child Safety Network Taps Dr. Michael C. Hout to Combat School Bus Stop-Arm Runners

Child Safety Network appointed psychology researcher Michael C. Hout, Ph.D., to lead a study examining why drivers illegally pass stopped school buses.

Read More →
Ad Loading...
The 5th-generation Waymo Driver on the all-electric Jaguar I-PACE.
Safetyby StaffMarch 5, 2026

NTSB Determines Human Error Led to Waymo’s Illegal School Bus Passing

Investigators reported a remote assistance error allowed a Waymo driverless vehicle to illegally pass a stopped school bus in Austin.

Read More →
The side of a school bus with a retracted stop signal.
Safetyby Elora HaynesMarch 4, 2026

National Action Plan Aims to End Illegal School Bus Passings Across the U.S.

See how a new 50-state roadmap outlines 69 strategies for districts, law enforcement, and policymakers to reduce the 39 million illegal school bus passings reported each year.

Read More →
A school bus graphic with text reading "Iowa Student Killed, 14 Injured in Oklahoma Bus Crash."
Safetyby StaffMarch 3, 2026

11-Year-Old Student Dies After Falling Under School Bus

Recently, an Iowa student died after falling under a school bus, while 14 Oklahoma students were injured days later when a semi-truck rear-ended their bus.

Read More →
Ad Loading...
school bus driver
SponsoredMarch 2, 2026

7 Key Criteria for Choosing a School Bus Fleet Technology Partner

Selecting a fleet technology partner can be complex, especially with evolving operational demands and limited resources. This white paper outlines seven key criteria to help school transportation leaders evaluate options and align technology with their needs. It offers a practical framework to support more informed decision-making.

Read More →
Graphic of a yellow school bus above the headline “The Real Cost of Downtime,” with icons illustrating overtime costs, frustrated parents and administrators, repair expenses, and route delays, emphasizing the operational and financial impact of communication failures in school transportation fleets.
SponsoredMarch 2, 2026

The Real Cost of Bus Fleet Downtime

When school bus communication systems fail, the consequences extend far beyond equipment repairs. Downtime can increase safety risks, strain dispatch operations, and erode driver confidence. Explore how proactive radio lifecycle management and managed services are reducing disruptions, supporting driver retention, and delivering predictable budgeting for school transportation fleets.

Read More →
Graphic showing the EverDriven logo and “SafeOps Council Launches” text over an image of a vehicle driving on a curved road, with School Bus Fleet branding in the corner.
Safetyby News/Media ReleaseFebruary 25, 2026

EverDriven Launches New Council to Standardize Safety Across 36 States

EverDriven has launched a new safety council aimed at standardizing and strengthening student transportation practices across all states it operates in.

Read More →
Ad Loading...
a photo of a school bus driving down a suburban street with houses in the background and green grass pictured
Safetyby News/Media ReleaseFebruary 23, 2026

Thomas Built Buses Awards “If You Pass” Safety Campaign Funds to Ga. District

The OEM's three-week campaign during National School Bus Safety Week has awarded nearly $6,000 to Bryan County Schools to support increasing student safety around the bus.

Read More →