Uber reportedly told New York City’s taxi regulator that proposed changes to commercial auto insurance requirements may leave drivers unable to insure their vehicles.
The company submitted written comments ahead of the Taxi and Limousine Commission’s public hearing Wednesday (Dec. 11), Bloomberg reported Wednesday.
The TLC’s proposed changes, which apply to rideshare cars as well as yellow cabs, would require TLC-licensed vehicles to be covered by an insurance policy issued by a “solvent and responsible company authorized to do business” in New York and would require minimum coverage to be provided by a single primary policy, according to the report.
The taxi regulator is proposing these changes after the reported insolvency of the insurance company that covers 60% of the city’s for-hire vehicles and is known for offering premiums well below the market rate, the report said.
Uber asked the TLC to be lenient on the adoption deadline, to allow existing policies to remain valid until they expire and to lower personal injury protection limits, per the report.
The company’s attorney, Nicholas Davoli, wrote in the statement that Uber supports the TLC’s goal of ensuring comprehensive coverage and insurance carrier solvency but has “significant concerns” that the proposed requirements would upset the vehicle insurance marketplace and leave thousands of owners/drivers without vehicle insurance, according to the report.
Uber CEO Dara Khosrowshahi said during an October earnings call that the ride-hailing and delivery company was looking beyond major cities like New York and Sao Paulo, which continue to be its largest source of demand.
“But continuously, we’ve seen that our growth outside of the core, in the boroughs of New York now extending into the suburbs or in secondary and tertiary cities, has been higher than the core itself almost accidentally,” Khosrowshahi said.
In November, Uber asked the TLC to reduce the per-mile rate in its driver pay formula by 6.1%, citing lower gas prices. The company also suggested capping future inflation-related adjustments at 3% or pegging it to the average rate reflected by the Consumer Price Index, whichever is lower.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.