NYC Taxi Regulators Face Backlash Over Proposed Insurance Changes
New York City’s Taxi and Limousine Commission (TLC) is facing pushback over proposed changes to commercial auto insurance requirements that some fear could unintentionally leave thousands of drivers unable to secure coverage.
Concerns Over “Solvent and Responsible” Rule
At the heart of the controversy is a new requirement that all TLC-licensed vehicles, including yellow cabs and rideshare cars like those used by Uber, must carry an insurance policy issued by a “solvent and responsible company authorized to do business” in New York.
While the TLC’s intention may be to ensure adequate financial backing for potential claims, critics say the ambiguous wording leaves the door open for stricter interpretation, potentially impacting drivers who rely on less conventional insurance providers.
“The proposed rule could unintentionally leave thousands of drivers in one of our largest markets unable to insure their vehicles,” a company spokesperson said. The firm prepared written comments ahead of a public hearing scheduled for Wednesday.
Impact on Drivers Using Supplemental Insurance
Adding to the concern is another proposed change requiring minimum coverage to be provided by a single primary insurance policy. This stipulation would effectively prohibit the use of supplementary insurance from non-state licensed firms, a common practice for many drivers seeking more affordable options.
Critics argue that this measure could further squeeze drivers already grappling with rising operating costs. They fear that it will limit choice and potentially lead to higher insurance premiums, making it increasingly difficult for them to make ends meet.
Public Hearing Sparks Debate
The proposed changes have sparked a lively debate, with stakeholders from various sectors weighing in on the potential ramifications.
