NYC Weighs Slashing Cab Insurance 75% to $50,000 to Aid Drivers
- Regulators have said NYC’s largest cab insurer is insolvent
- City’s $200,000 mandate is conducive to fraud, lawmaker says
A taxi outside Penn Station in New York.
Photographer: Yuki Iwamura/BloombergThis article is for subscribers only.
The New York City Council will introduce legislation this week that would drastically reduce the amount of insurance coverage taxi and ride-share vehicles are required to maintain, looking to contain potential fallout from the insolvency of the city’s largest taxi insurer.
Northern Manhattan City Council Member Carmen De La Rosa wants to lower the minimum personal injury protection coverage for commercial ride-share cars in New York City from $200,000 to $50,000. The change would bring insurance requirements in line with levels mandated for ride-share vehicles in the rest of the state, helping lower premiums in an industry beset by financial problems.