Chameleon Carriers: A Destructive Trucking Industry Loophole

The semi-truck that killed William “Bill” Card in 2021 became a chameleon — or “reincarnated” — carrier after the accident.

This means the trucking company shut down (due to a history of crashes or safety violations) then re-opened with a new name to avoid penalties. Chameleon carriers have been around for decades, yet they continue to slip under the radar and cause horrific crashes.

Bill Card, a 69-year-old Indianapolis man, lost his life because the owner of the truck did not value safety.

The owner was also the driver. He only had one truck and carried minimum insurance. He was careless and dangerous. After killing Mr. Card, he changed the name of his company and re-emerged as a different carrier.

Here’s what you should know.

What Are Chameleon Carriers? Are They Dangerous?

The Federal Motor Carrier Safety Administration (FMCSA) coined the term “chameleon carrier” to describe trucking companies that shut down or are forced to shut down, then re-open as a different company.

These motor carriers stay the same but tweak their names, addresses or DOT numbers to “seem” like different companies. Often, they even remain in the same city, state or region to keep the business they had prior to shutting down.

Some companies repeat this process several times.

Chameleon carriers are about three times more likely to be involved in serious crashes than lawful carriers, sources report. In fact, this issue became more widely known after chameleon carriers caused a few serious crashes in the early 2000s that killed dozens of people.

These companies aren’t changing their names to get a fresh start. They’re deliberately deceiving the Department of Transportation and FMCSA to avoid fines, fees and other penalties from previous negligence — and to continue being hired.

The Owner/Driver that Killed Mr. Card Is Still Driving

Mr. Card’s wrongful death case is one that demonstrates the danger of these negligent companies. Craig, Kelley & Faultless was hired by his family after he was catastrophically injured in a crash in 2021.

The 69-year-old Indianapolis man had been driving in Decatur Township to pick up some parts for a tractor. He sat at the intersection of Camby Road and Kentucky Avenue in his Ford pickup truck. The light turned green, and he began to make a left-hand turn.

A semi tractor-trailer ran its red light and headed into the intersection, where it smashed into Mr. Card’s truck. The wreck left Mr. Card with a serious brain injury.

Twelve days later, he was dead.

The semi driver claimed he had done nothing wrong. He said Mr. Card ran the red light and caused the crash.

Unable to believe this, Mr. Card’s family contacted Craig, Kelley & Faultless. They asked for the firm’s help proving Mr. Card’s innocence and confronting the negligent trucker who destroyed their family.

Inspecting the vehicles and downloading both trucks’ data revealed to investigators that witnesses were correct. Mr. Card had been proceeding through a green light when a reckless truck driver sped through the intersection.

But the story did not end there.

Chameleon Carriers Hide in Plain Sight

The Freightliner that struck Mr. Card had an issue with its brakes. The driver had been operating faulty, unmaintained equipment — a common theme within chameleon carriers.

The trucker was the owner-operator of his own company. The one-driver, one-truck operation was based out of California and hauled freight across the country.

Less than a year after he crashed into Mr. Card, this trucker had closed and re-opened his business with a new name and new corporate address. Because he was not initially blamed for the wreck, his Commercial Driver’s License had not been ticketed.

At a glance, this driver seemed like any other, but he wasn’t. He moved on after causing this crash and showed no remorse. The Card family was shocked.

“We feel like he got to go on and live his life…no repercussions for what was done,” Chris, Mr. Card’s son, told attorney David Craig on an episode of After the Crash.

How Can Dangerous Semi Drivers Get Insurance?

One major reason that chameleon carriers pretend to be different companies after wrecks is to keep cheap insurance.

By pretending to be a new company, chameleon carriers can run under the FMCSA’s radar, avoid punishment, and qualify for insurance. The managing partner of Craig, Kelley & Faultless, David Craig, is a board-certified truck accident attorney who has seen chameleon carriers in action.

Here is how he described this problematic system.

“They’re running on their smaller profit margins, going through brokers bidding low on jobs, and they’re out there running bad equipment just trying to get by and skate underneath the safety regulations,” David said.

“Then, when they get in a bad wreck, they swap, they change names, they change DOT numbers, and they get new insurance. I see it way too often, and they are the worst drivers.”

The issue of chameleon carriers is closely related to another problem in commercial trucking: inadequate insurance coverage. Since 1980, the federal minimum liability insurance coverage for interstate motor carriers has been $750,000. If it had risen with medical cost inflation, this minimum would be about $5 million today.

Increasing this minimum would raise the standards for trucking companies. It may encourage them to hire safer drivers, maintain their equipment and avoid crashes at all costs.

A Grieving Family Pushes for Change

“He was a good person and did a lot of good things in this world,” Chris Card said of his father in a recent case-breakdown video.

Mr. Card was one of about 5,800 people who lost their lives to large-truck wrecks in 2021.

The Card family was dismayed to learn that the driver who struck Mr. Card simply moved on soon after the crash. They believe negligent drivers should not be able to close their companies and re-open while litigation is ongoing.

They have also become advocates for a higher minimum insurance limit for commercial motor vehicles. The $750,000 limit could not come close to compensating for the medical bills, property damage and lost wages in Mr. Card’s case.

Far too many motor carriers are allowed to operate with inadequate insurance coverage, cause wrecks and violate safety rules, then shut down and re-open once they’re caught in their negligence.

Does the FMCSA Monitor Unsafe Trucking Companies?

A company’s safety record says a lot about it. Once a shady trucking company amasses enough violations, it attempts to wipe the slate clean and start over. But its equipment is still faulty, and its drivers are still reckless and unqualified.

Unfortunately, many of these chameleon carriers get away with it.

The FMCSA has attempted to stop them. It developed a vetting program that “incorporates software to conduct automated risk-based assessments calculating risk potential based on the likelihood that an applicant for commercial operating authority is a chameleon carrier,” Freight Waves writes.

The program analyzes carriers’ phone numbers, addresses, names, email addresses, VIN numbers, and other information to check for suspicious similarities. It’s better than nothing, but this system is not foolproof. Many chameleon carriers go unnoticed until it’s too late.

Hire an Attorney Who Will Do the Work

Victims of semi-truck and other commercial motor vehicle wrecks must hire the best attorneys possible. They deserve an attorney who will investigate their crash, the companies involved, and the driver’s safety record.

The Card family was heartbroken when Mr. Card died. In the end, they cared more about making change — about preventing other families from facing this tragedy — than they did about the settlement they received.

If your attorney is not focused on helping you and protecting your interests, they are not the right attorney.

Craig, Kelley & Faultless has a team with experience battling stubborn insurance companies, negligent drivers and chameleon carriers. We will work tirelessly to help your family recover.

Contact us for a free case consultation today at (800) 746-0226 or with the online form.

 

David W. Craig sits on the Board of Regents of the Academy of Truck Accident Attorneys (which requires the board certification in truck accident law). He is the managing partner and one of the founding partners of Craig, Kelley & Faultless LLC. He is recognized as a Top 10 Trucking Trial Lawyer and Top 100 Trial Lawyer in Indiana by the National Trial Lawyers, as well as a Top 50 Indiana lawyer by Super Lawyers. David is the author of Semitruck Wreck, A Guide for Victims and Their Families, written to help people navigate a terrible situation by answering questions that come after a tragic wreck. He also hosts the podcast After the Crash, where you can gain valuable information about the dangers involving semis and large trucks that do not follow safety protocol regarding speed, weather conditions, maintenance upkeep, etc.