By Kamal Ahmed
The New York Taxi Workers Alliance (NYTWA), representing roughly 28,000 taxi and for-hire vehicle (FHV) drivers across New York City, has thrown its support behind Kathy Hochul’s proposal to reform auto insurance, aiming to reduce premiums and crack down on widespread fraud.
In a statement issued here today, the alliance identified insurance fraud as a key driver of soaring premiums and stressed the urgent need for targeted solutions to ease the financial burden on Uber and taxi drivers.
“For Uber and taxi drivers, there’s no doubt we need solutions to exorbitant premiums and to fraud, one of the leading contributors to inflated insurance rates,” said NYTWA Executive Director Bhairavi Desai.
American Transit Insurance Company (ATIC), which provides specialized coverage for livery and commercial auto, insures 65% of NYC’s for-hire vehicles, followed by Hereford Insurance Company, Affirmative Direct, Accident Fund, Maya Assurance Co., and Lancer.
The statement said, premiums for professional drivers have surged by as much as 30%, with many now effectively on the hook for the fallout from insurer instability—echoing the financial strain seen during the medallion debt crisis.
“This is an unfair and unsustainable burden with serious long-term consequences, including mounting debt and job loss,” the union warned.
The NYTWA endorsed several of Hochul’s anti-fraud initiatives, including a proposal to bar intoxicated or unlicensed drivers from receiving benefits beyond no-fault limit measures, the group says could improve road safety.
However, the alliance expressed strong opposition to provisions that would eliminate additional coverage for motorists found to be 51% or more at fault.
“That drastic reduction in coverage could be devastating for a workforce that often lacks workers’ compensation and relies heavily on auto insurance in the event of long-term injury,” the statement noted.
The union is also calling for structural relief, including the creation of a captive insurance program to stabilize premiums over time, along with immediate subsidies to offset sharply rising costs.
Governor Hochul has recently intensified efforts to address the rising cost of auto insurance statewide, framing fraud as a central factor behind escalating premiums.
“For most people, car insurance isn’t a luxury—it’s a necessity,” Hochul said. “These commonsense proposals will crack down on bad actors who are driving up costs and shifting the burden onto hardworking New Yorkers.”
Her plan aims to curb fraudulent claims, tighten enforcement, and limit excessive payouts tied to staged accidents and legal loopholes.
State data underscores the scale of the problem. In 2023, New York recorded 1,729 staged crashes, the second-highest total in the nation. Reports of suspected motor vehicle insurance fraud surged to 43,811 cases in 2025, up from 24,238 in 2020—an increase of nearly 80% over five years.
Experts say increasingly sophisticated fraud rings are orchestrating elaborate staged collisions designed to generate large insurance payouts, contributing significantly to higher premiums—estimated to cost drivers an additional $300 annually on average.