FILE PHOTO: Uber and Lyft signs are seen on a car in Redondo Beach, California, U.S., March 25, 2019. undermined the stability of New York’s top insurer for taxis, black cars, and ridesharing
A major contributor to ATIC’s troubles is the Big Apple’s highest in the nation insurance requirements for for-hire vehicles. New York City mandates drivers carry insurance coverage of $200,000 per person. That’s four times higher than the minimum required in other parts of the state—$50,000. In contrast, New Jersey mandates only $15,000, and Pennsylvania requires just $5,000.
The Empire State’s legal environment encourages excessive litigation and fraudulent claims, which distorts and destabilizes the insurance market. New York’s hostile litigation climateEach year, personal injury lawyers spend millions in advertising, often specifically targeting Uber and Lyft. In 2023, law firms and legal groups
. 60% of was spent on local television ads and 14% on radio. These aggressive marketing tactics fuel a culture of litigation, where ads not only drum up businesses, they also influence juries. Attorney-driven lawsuits and questionable claims clog the court system, drive up legal costs, and inflate insurance premiums.Both Albany and New York City Council have a role in reining lawsuit abuse. First, the City’s insurance requirements for for-hire vehicles need to be re-evaluated and streamlined.