Report: The company that insures most NYC taxis and ride-shares is insolvent

January 2, 2025 Brooklyn Eagle Staff

Passengers get into a taxi on Jan. 29, 2020, in New York. AP Photo/Mark Lennihan, File

Passengers get into a taxi on Jan. 29, 2020, in New York. Photo: Mark Lennihan/AP

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STATEWIDE — THE COMPANY THAT INSURES the majority of the city’s taxicabs and ride-share vehicles, American Transit Insurance Company, is insolvent and has been for decades, according to Bloomberg News. Now, state authorities are in a state of alarm after a report showed the company posted $700 million in losses in the second quarter. The state Department of Financial Services is working to find a solution without shutting down the company, which would prevent 75,000 taxis from being able to operate. ATIC laid the blame, in part, on “rampant” insurance fraud.

“ATIC firmly and unequivocally denies any allegation that we failed in our responsibilities to our insureds,” the company said on its website. “The company is working tirelessly to address a longstanding issue of statutory solvency amid rampant insurance fraud and escalating costs.”

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