FORMER TLC COMMISSIONER DAUS IN AM NY: ALBANY INACTION CAUSING STATEWIDE INSURANCE CRISIS
NYC’s For-Hire Vehicle Insurance Crisis Could Impact All New Yorkers
ALBANY – In a new op-ed in AM New York, Matthew W. Daus, former NYC Taxi & Limousine Commissioner, calls for immediate reform of New York’s insurance system to address the root causes of rising premiums.
The op-ed highlights the growing crisis caused by the recent insolvency of American Transit Insurance Company (ATIC), a major provider of insurance for New York City’s taxi and for-hire vehicle drivers, and how the resulting financial turmoil could soon impact New Yorkers statewide, as insurers pass on increased costs to other, unrelated policyholders.
ON THE PROBLEM: The recent insolvency of American Transit Insurance Company has exposed deep cracks in the state’s insurance framework. It’s not just a problem for the drivers who depend on affordable insurance to make a living – it’s a systemic failure that could leave homeowners in Buffalo and car owners in Rochester footing the bill for Albany’s regulatory failures.
ON THE IMPACT: The company’s struggles highlight a vicious cycle: the high cost of insuring for-hire vehicles, driven by fraudulent claims and inflated medical bills, forces insurers to hike premiums. This, in turn, squeezes drivers, many of whom are immigrants and low-income workers.
ON THE SOLUTIONS: Daus outlines several key reforms that would reduce costs and restore fairness to the system:
- Lowering PIP Coverage for NYC TLC Drivers: Adjusting mandated coverage levels would significantly reduce costs for drivers without sacrificing essential protections.
- Attracting New Market Players: Encouraging more insurers to enter the market would foster competition, helping to drive down premiums and build a more resilient insurance system.
- Enacting Legal Reforms: Addressing fraud and abuse in the legal system is critical. New York should implement measures to curb fraudulent lawsuits, including capping non-economic damages and increasing oversight of the professionals involved in no-fault claims.
CONCLUSION: The collapse of ATIC is a stark reminder of the urgent need for action. Daus urges the City and State to enact these reforms now to reduce fraud, lower premiums, and create a more sustainable insurance system for all New Yorkers.
For more information on Citizens for Affordable Rates, visit:www.citizensforaffordablerates.com
