CITY COUNCIL PASSES LANDMARK INSURANCE REFORM BILL, PAVING WAY FOR LOWER COSTS FOR NYC’S FOR-HIRE DRIVERS & PASSENGERS
Council Unanimously Approves CM De La Rosa’s Legislation to Cut Excessive Insurance Mandate From $200K to $100K
NEW YORK — In a major victory for New York City’s for-hire vehicle (FHV) drivers and the millions of New Yorkers who rely on them, the City Council today unanimously passed legislation sponsored by Council Member Carmen De La Rosa (D-Manhattan, District 10) that will cut the city’s outdated and excessive auto insurance requirement from $200,000 to $100,000 in Personal Injury Protection (PIP) coverage per person.
Citizens for Affordable Rates hailed the long-awaited reform, which is expected to lower insurance premiums, curb rampant fraud, and increase competition in a strained commercial auto insurance market. It is a decisive step toward creating a more affordable and sustainable market for the city’s 74,000 FHV drivers – including Uber, Lyft, yellow taxi, and livery drivers – many of whom are immigrants and small business owners. The bill now heads to Mayor Eric Adams’ desk for signature.
“For years, New York City’s for-hire drivers have been crushed by an unjust, outdated insurance mandate that inflated costs, limited their options, and unleashed widespread fraud. In the middle of an affordability crisis, drivers were stuck paying the price for a broken system,” said Council Member Carmen De La Rosa. “But today, the Council came through. We stood up for fairness, for affordability, and for the hardworking people who keep our city moving. This bold, common-sense reform is a win-win for drivers and passengers.”
Key benefits of the bill include:
- Lower Premiums: The reduced PIP requirement is projected to save drivers up to $300 per year, offering critical financial relief in an industry where margins are already tight.
- Fraud Prevention: The city’s current $200,000 PIP mandate – four times the state standard – incentivizes fraudulent claims and litigation. Lowering the cap helps curb no-fault insurance fraud, which made up 75% of all fraud reports received by the State Department of Financial Services in 2023.
- Stronger Insurance Market: The change is expected to be a necessary step toward attracting more insurance carriers to the NYC FHV market, increasing competition and providing more options and better pricing for drivers.
The Council’s action comes amid rising concerns over the collapse of American Transit Insurance Company (ATIC), the largest insurer of taxis and Ubers in the city, which currently insures more than 60% of the fleet. The new legislation helps stabilize a fragile market and offers a path forward for drivers who face losing coverage.
“We represent people who came to this city to build a life for their families, but between the high insurance rates and all the other expenses, it’s harder than ever to get by. This bill will ease the pressure. $100,000 in coverage is enough, and it’ll give them a chance to actually save money. It’s time to sign this long overdue bill into law,” said Toyin Omolola, CEO, DSI International Inc.
“This is a victory for drivers and passengers. Our city’s drivers have been paying way too much for insurance, and the City’s additional requirements have made the problem much worse. Reducing this unfair burden will lower their sky-high premiums. That’s a big win. I fully support this bill, and I know many drivers feel the exact same way,” said Herb Regnier, Executive Director – Bangladeshi American Community Development & Youth Services.
FHV drivers in NYC are already covered by additional protections through the Black Car Fund and Workers’ Compensation for yellow taxis. These programs offer coverage for medical costs, lost wages, and even death benefits – making the lower PIP requirement both reasonable and non-redundant. The legislation is backed by a broad coalition of Council Members, driver groups, advocates, and policy experts, including Citizens for Affordable Rates, which has led the charge for reform.
Advocates and Council Members are urging the administration to act swiftly to deliver long-overdue relief to the city’s for-hire vehicle industry and the riders who depend on it every day.
About CAR
Citizens for Affordable Rates (CAR) is a coalition of citizens, advocates, and organizations dedicated to tackling the root causes of high insurance premiums in New York. Through advocacy, education, and policy reform, CAR is committed to building an affordable and dependable insurance system for all. To learn more, please visit: www.citizensforaffordablerates.org
