New York officials have told companies, advocates and others in the for-hire vehicle (FHV) industry that insurance rates will rise by an average of 25% over the next three years, likely increasing passenger fares. The state asked carriers to raise their fees to “actuarially justified levels” as they try to stabilize an industry reeling from the insolvency of its largest provider, the American Transit Insurance Company. That could translate to as much as $1,500 more per year for drivers, according to the New York Taxi Workers Alliance.
The phased-in approach “allows policymakers and the industry an opportunity to work together to identify ways to bear these costs over time, including through potential adjustments to passenger fares,” the Department of Financial Services (DFS) said. The DFS told Bloomberg that it’s working with carriers to finalize the rate adjustments, which will happen on a rolling basis starting March 1, based on when a driver’s policy renews throughout the year. Policy holders may receive a range of increases since the department has only approved average rate changes for each carrier. The department said drivers will receive notices of any change to their rates at least 60 days before their policy renewal date.
Source: Bloomberg
