NYC Mayor Adams signs law to reduce insurance coverage mandates for taxis and for-hire vehicles

By Mia MacGregor

July 2 - (The Insurer) - New York City Mayor Eric Adams has signed legislation to reduce the no-fault auto insurance liability coverage required for taxis and for-hire vehicles, aiming to ease financial burdens on drivers.

The newly enacted law, Intro. 1050, restricts the New York City Taxi and Limousine Commission from mandating more than 200% of the state-mandated personal injury protection insurance coverage for licensed vehicles.

Previously, the TLC required ride-sharing vehicles to carry $200,000 in PIP coverage, significantly above New York state's minimum requirement of $50,000.

Under the new legislation, effective March 1, 2026, the required coverage for the city's for-hire drivers will be reduced from $200,000 to $100,000 per person.

“For too long, our TLC-Licensed drivers have had to pay higher rates for no fault or personal injury insurance for their vehicles, burdening drivers and owners with thousands of dollars in costs and putting pressure on their monthly bills,” said Mayor Adams.

“Today, we’re changing that — by signing this legislation, we are putting money back into the pockets of drivers, limiting the amount of liability coverage they can be required to have,” he added.

According to the New York City TLC's 2024 Annual Report, more than 120,000 vehicles are licensed by the TLC, including 13,587 taxis and approximately 106,000 for-hire vehicles.

The move comes against a backdrop of a distressed taxi and rideshare insurance market in New York, following the insolvency of its largest provider American Transit Insurance Company.

In January this year, New York Governor Kathy Hochul introduced measures aimed at stabilizing the market. Her proposed bills aimed to streamline the process for adjusting insurance rates and enable regulators to phase in premium increases.