LANDMARK INSURANCE REFORM SIGNED BY MAYOR ADAMS, PAVING WAY FOR LOWER COSTS FOR FOR-HIRE DRIVERS & PASSENGERS
Mayor Adams Signs Bill Cutting Excessive Insurance Mandate From $200K to $100K
NEW YORK — In a major victory for New York City’s 74,000 for-hire vehicle (FHV) drivers and the millions of New Yorkers who rely on them, Mayor Eric Adams today signed into law legislation sponsored by Council Member Carmen De La Rosa (D-Manhattan, District 10) that reduces the city’s excessive auto-insurance mandate that was four times higher than the statewide requirement.
The new law cuts the outdated Personal Injury Protection (PIP) mandate from $200,000 to $100,000 per person – bringing New York City’s standard closer to the statewide level and providing long-overdue relief amid an affordability crisis.
Citizens for Affordable Rates (CAR) hailed the reform, which is expected to lower premiums, curb rampant fraud, and attract new insurers to a strained market serving Uber, Lyft, yellow-taxi, and livery drivers – many of whom are immigrants and small-business owners.
“For years, New York City’s for-hire drivers have been burdened by an unjust, outdated insurance mandate that inflated costs, limited their options, and encouraged widespread fraud. Those days are coming to an end,” said Council Member Carmen De La Rosa. “We’ve listened to the voice of drivers to fix the broken insurance industry and provide affordability and stability. We look forward to the successful implementation of this policy and the relief it will provide for the hardworking people who keep our city moving."
Key benefits of the new law include:
Lower Premiums: Cutting the PIP requirement could save drivers up to $300 per year, critical relief for drivers amid an affordability crisis.
Fraud Prevention: The previous $200,000 mandate—four times the state standard—fueled litigation and fraudulent claims. Reducing the cap helps curb no-fault fraud, which accounted for 75 percent of fraud reports received by the State Department of Financial Services in 2023.
Stronger Insurance Market: By eliminating an outlier requirement, the law makes the NYC market more attractive to carriers, increasing competition and expanding affordable options for drivers.
The signing comes amid concerns over the potential collapse of American Transit Insurance Company (ATIC), which insures more than 60 percent of the FHV fleet. By stabilizing the market and inviting new carriers, the reform provides a vital safeguard for drivers facing uncertainty about future coverage.
“We represent people who came to this city to build a life for their families, but between high insurance rates and all the other expenses, it’s harder than ever to get by,” said Toyin Omolola, CEO, DSI International Inc. “This law eases that pressure. One hundred thousand dollars in coverage is enough – and now drivers can keep more of what they earn.”
“This is a victory for drivers and passengers,” added Herb Regnier, Executive Director, Bangladeshi American Community Development & Youth Services. “Reducing this unfair burden will lower sky-high premiums and keep more money in the pockets of hardworking drivers. That’s a big win.”
NYC FHV drivers already benefit from protections through the Black Car Fund and Workers’ Compensation for yellow taxis, which cover medical costs, lost wages, and death benefits – making the lower PIP level both reasonable and non-redundant.
Backed by a broad coalition of council members, driver groups, advocates, and policy experts – led by Citizens for Affordable Rates – this reform marks a milestone in the fight for affordability and fairness in New York’s transportation economy.
About Citizens for Affordable Rates (CAR)
Citizens for Affordable Rates is a coalition of residents, advocates, and organizations dedicated to tackling the root causes of high insurance premiums in New York. Through advocacy, education, and policy reform, CAR works to build an affordable, dependable insurance system for all. Learn more at www.citizensforaffordablerates.org