Opinion: NYC’s for-hire drivers are on the brink. Let’s give them a lifeline.

New York City is sleepwalking into a crisis that could cripple our transportation network and devastate the lives of thousands of for-hire drivers. 

The potential collapse of American Transit Insurance Company – the largest insurer of taxis and Ubers in the city – threatens the jobs of 74,000 drivers, representing more than 60% of the city’s fleet. Without swift action, this could lead to an economic disaster, destabilizing an industry that’s essential to the daily functioning of our city.

But this crisis isn’t just the result of one insurance company’s financial mismanagement. It’s a symptom of an outdated and overly burdensome insurance system that forces drivers to pay sky-high premiums without justification. The core of the problem lies in New York City’s Personal Injury Protection requirement, which mandates $200,000 in coverage per driver – four times what is required everywhere else in the state. This excessive regulation has led to spiraling insurance costs that have pushed drivers into a cycle of financial pain.

To make matters worse, this inflated threshold has made New York City a target for insurance scammers, who file fraudulent claims to exploit the higher payouts available here. These bad actors take advantage of a generous system, adding further hardship to insurers and drivers who are already struggling to make ends meet. According to a report issued by the state Department of Financial Services, this type of scam accounted for 75% of all fraud reports that the department received last year.

To address this interconnected problem, I’ve introduced legislation to reduce for-hire drivers’ insurance coverage requirement to $50,000, aligning New York City with the statewide standard. This straightforward, common-sense reform will ease the financial burden on drivers, lower premiums, reduce fraud and open up the insurance market to more options. It’s a simple fix that will lay the groundwork for a more competitive and stable system in the years ahead.

Drivers across New York state, in major cities and elsewhere, safely operate within the $50,000 insurance requirement, and drivers in New York City should not be treated differently. In fact, city drivers are already covered by additional protections that make the $200,000 mandate unnecessary. For example, the Black Car Fund provides benefits such as medical coverage and wage replacement for drivers, while yellow taxi drivers are covered by Workers’ Compensation. With these safeguards in place, lowering the insurance threshold won’t endanger passengers or drivers – it will simply equalize a system that has long been stacked against the people who keep our city moving.

For-hire transportation is an iconic cornerstone of New York City’s economy, providing service to at least 800,000 residents and visitors each day. If insurance premiums continue to climb unchecked and a major insurer collapses, we will experience widespread disruptions and untold consequences. Commuters will struggle with fewer taxis and rideshare vehicles available, and our already overburdened public transportation system will face even more pressure. Without question, the economic fallout from service interruptions and job losses would be felt citywide and beyond.

For-hire drivers, who work grueling hours in challenging conditions, deserve fair compensation and the chance to support their families without the constant pressure of escalating insurance premiums. But the benefits of this legislation extend beyond drivers, too. Lower premiums incentivize lower fares, making transportation more affordable for everyone. And by curbing incentives for fraudulent claims, we’ll safeguard consumers from the burden of increased insurance premiums, which are often passed on to them as a result of scams.

Of course, this bill won’t solve every challenge our for-hire drivers face. The industry still faces high fuel costs, rising vehicle maintenance expenses and toll increases. But reducing onerous insurance requirements is a crucial first step that will provide relief to drivers and pave the way for broader reforms in the future.

At the heart of this issue is a simple truth: for-hire drivers are not just a cog in the transportation system. They are hardworking New Yorkers – immigrants, parents and neighbors – struggling to survive in one of the world’s most expensive cities. For many of my constituents, driving is their primary source of income. This is an industry that has sustained generations of working-class families, and their ability to continue earning money depends on access to affordable insurance.

It’s time to repay drivers by lifting the crushing burdens threatening their livelihoods. Let’s pass this critical legislation and give them – and consumers – a lifeline they all desperately need.