SchoolBus logo in red and orange
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

Fatal School Bus Accident in New York graphic dated Jan. 29, 2026, showing a close-up of a yellow school bus with cracked-glass overlay and School Bus Fleet logo.
Safetyby StaffFebruary 3, 2026

New York 5-Year-Old Killed by School Bus, Investigation Ongoing

A Rockland County child was struck by their school bus late last week. Here's what we know so far about this and other fatalities and injuries in the area over the years.

Read More →
A red, orange and yellow graphic with anti-pinch door sensor products and text reading "Maine's New Mandate: Anti-Pinch-Sensors & Bus Safety."
Safetyby Elora HaynesJanuary 29, 2026

Prevent School Bus Dragging Incidents: Anti-Pinch Door Sensors and Maine’s New Mandate

As Maine becomes one of the first states to require anti-pinch door sensors on new school buses, manufacturers like Mayser offer a look at how the technology works and why it's a critical fail-safe.

Read More →
SponsoredJanuary 29, 2026

8 Ways To Simplify and Streamline School Bus Fleet Operations

What if your fleet technology actually worked together? Learn eight practical strategies to integrate multiple systems into one platform, unlocking clearer insights, stronger safety standards, and smoother daily operations.

Read More →
Ad Loading...
an illustration of a survey on a mobile phone with a hand on it, and the words Survey Says on it
Safetyby News/Media ReleaseJanuary 28, 2026

Survey: Most Parents Want Automated Enforcement on School Buses

A recent Verra Mobility survey reports that 82% of parents support safety cameras to penalize stop-arm violators and 70% favor automated enforcement in school zones.

Read More →
Image of an extended stop-arm with text reading "School Bus Safety: Funding Provides Bus Upgrades Across Ohio."
Safetyby StaffJanuary 27, 2026

State Grant Program Advances School Bus Safety Upgrades Across Ohio

$10 million in state grants will fund safety upgrades and new features on school buses serving students across the Buckeye State.

Read More →
A white Waymo vehicle waits at a crosswalk as a family crosses.
Safetyby StaffJanuary 26, 2026

Waymo Scrutiny Intensifies as NTSB Launches Investigation

After complications in multiple cities when self-driving taxis failed to stop for school buses, the NTSB joins NHTSA in a probe to determine what's behind the tech and related safety concerns.

Read More →
Ad Loading...
Transportant stop arm camera shown on an orange “new product” graphic with School Bus Fleet branding.
SafetyJanuary 20, 2026

Transportant Debuts First Full-Color Stop Arm Camera for School Buses

Transportant introduced a next-generation stop arm camera designed to improve image quality and reliability for documenting illegal school bus passings.

Read More →
SponsoredJanuary 19, 2026

3 New Ways Fleet Software Pays: ROI opportunities for modern fleet managers

Keeping buses safe, reliable, and on schedule requires more than manual processes. This eBook explores how modern fleet software supports school transportation teams with automated maintenance scheduling, smarter video safety tools, and integrated data systems. Discover practical ways fleets are reducing breakdowns, improving safety, and saving valuable staff time.

Read More →
An image of a student with a backpack walking with text reading "Walking School Bus: Grant Fuels Safer Pedestrian Routes to School in New Mexico."
Safetyby Elora HaynesJanuary 15, 2026

New Mexico District Receives $2.7M Grant to Expand Walking School Bus Programs

See how a federal grant will help Albuquerque Public Schools expand supervised walking routes and improve student safety.

Read More →
Ad Loading...
Illustration showing a school bus with a standard stop arm and a deployed retractable safety barrier extending across the roadway to block passing vehicles.
Safetyby News/Media ReleaseJanuary 13, 2026

Florida Inventor Creates Retractable 10-Foot Stop-Arm

A newly developed school bus safety device introduces a retractable barrier designed to deter illegal passing during student loading and unloading.

Read More →