FORMER TLC COMMISSIONER DAUS IN AM NY: ALBANY INACTION CAUSING STATEWIDE INSURANCE CRISIS
NYC’s For-Hire Vehicle Insurance Crisis Could Impact All New Yorkers
ALBANY – In a new op-ed in AM New York, Matthew W. Daus, former NYC Taxi & Limousine Commissioner and chair of the transportation law practice at Windels Marx, calls for immediate reform of New York’s insurance system to address the root causes of rising premiums.
The op-ed highlights the growing crisis caused by the recent insolvency of American Transit Insurance Company (ATIC), a major provider of insurance for New York City’s taxi and for-hire vehicle drivers, and how the resulting financial turmoil could soon impact New Yorkers statewide, as insurers pass on increased costs to other, unrelated policyholders.
ON THE PROBLEM: The recent insolvency of American Transit Insurance Company has exposed deep cracks in the state’s insurance framework. It’s not just a problem for the drivers who depend on affordable insurance to make a living – it’s a systemic failure that could leave homeowners in Buffalo and car owners in Rochester footing the bill for Albany’s regulatory failures.
ON THE IMPACT: The company’s struggles highlight a vicious cycle: the high cost of insuring for-hire vehicles, driven by fraudulent claims and inflated medical bills, forces insurers to hike premiums. This, in turn, squeezes drivers, many of whom are immigrants and low-income workers.
ON THE SOLUTIONS: Daus outlines several key reforms that would reduce costs and restore fairness to the system:
Lowering PIP Coverage for NYC TLC Drivers: Adjusting mandated coverage levels would significantly reduce costs for drivers without sacrificing essential protections.
Attracting New Market Players: Encouraging more insurers to enter the market would foster competition, helping to drive down premiums and build a more resilient insurance system.
Enacting Legal Reforms: Addressing fraud and abuse in the legal system is critical. New York should implement measures to curb fraudulent lawsuits, including capping non-economic damages and increasing oversight of the professionals involved in no-fault claims.
CONCLUSION: The collapse of ATIC is a stark reminder of the urgent need for action. Daus urges the City and State to enact these reforms now to reduce fraud, lower premiums, and create a more sustainable insurance system for all New Yorkers.
For more information on Citizens for Affordable Rates, visit: www.citizensforaffordablerates.com