New York City is walking back a proposed rule change that would have required taxi and rideshare drivers to be covered by a “solvent and responsible” insurance carrier, after Uber Technologies Inc. warned the mandate risked leaving thousands of drivers uninsured.
The Taxi and Limousine Commission, or TLC, which regulates for-hire cars in the city, will only require that the policies be “issued by companies authorized to do business” in New York state, removing the need for licensed vehicle owners “to determine their carrier’s financial status,” according to a revised rule document posted on the agency’s website.
The board of commissioners will vote on the finalized rules Wednesday. If approved, they’ll go into effect on Jan. 1, 2026.
TLC officials, along with Governor Kathy Hochul, have been taking steps to stabilize this segment of the insurance market after Bloomberg reported that American Transit Insurance Co., which covers around 60% of the city’s roughly 120,000 for-hire vehicles, is insolvent and posted more than $700 million in net losses in the second quarter of 2024.
The company is still permitted to operate in the state even as it faces complaints about its ability to pay out claims in a timely manner.
Uber raised concerns about the TLC’s initial proposal to tighten insurance requirements, arguing that a lack of clear definition for “solvent” and “responsible” would risk further upsetting the for-hire vehicle insurance marketplace.
Read More: Uber Warns NYC Response to Insolvent Insurer Exposes Drivers
TLC says removing that language in the revised rules “will provide more coverage flexibility for TLC-licensed vehicle owners as carriers undergo state-level regulatory review.” It made the tweak “following internal review and public comments from several stakeholders” including ATIC’s counsel, it said.
The regulator is also relaxing its proposed ban on using supplementary insurance policies to meet its minimum coverage requirements. Split coverage will be allowed under the final rules as long as the secondary policies are also provided by carriers authorized to operate in New York.
In doing so, the TLC said it’s declining Uber’s proposal to allow supplementary policies from non-state licensed carriers as they “do not provide the same levels of protection for consumers.” This in turn could hurt Uber’s partner Inshur Inc., which is not admitted in New York but provides insurance to more than 7% of TLC vehicles with the backing of a licensed firm, Accident Fund Insurance Co.
Photo: A person gets on a taxi outside Penn Station in New York, US, on Thursday, Sept. 5, 2024. Photographer: Yuki Iwamura/Bloomberg
Copyright 2025 Bloomberg.
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