Opinion: A more affordable future for NYC’s for-hire drivers and passengers

New York City’s yellow taxis and for-hire vehicles are more than just symbols of our vibrant metropolis – they are a daily lifeline. They connect neighborhoods, power our economy and form the backbone of our transportation system. Every day, these vehicles get nurses to hospitals, kids to school and working people to their jobs.

Behind the wheel are hardworking New Yorkers who perform essential work under increasingly difficult conditions. For too long, they’ve struggled under an outdated and deeply unfair insurance mandate, paying far more than drivers anywhere else in New York state. This burden, coupled with the city’s affordability crisis, has pushed too many to the brink. But this week, we took a major step to change that.

Some politicians talk about affordability while quietly adding new fees or loudly adding new tariffs that end up costing working people more money. Meanwhile, the New York City Council took real action. My colleagues from both parties unanimously voted to pass legislation I sponsored to lower the Personal Injury Protection insurance requirement for NYC’s for-hire drivers – from a crushing $200,000 per person to a fairer $100,000, in far closer alignment with the statewide requirement. This common-sense reform will bring immediate savings to tens of thousands of drivers and help stabilize a market that was on the verge of collapse.

Let me be clear: the previous $200,000 insurance mandate was not just excessive, it was an actively harmful burden that made no sense. It quadrupled the coverage required elsewhere in New York, needlessly inflating premiums and, tragically, inviting widespread abuse. In fact, fraud connected to this policy made up a whopping 75% of all insurance fraud reports received by the state Department of Financial Services last year. This environment enriched scammers and insurance middlemen, while pushing drivers to the edge of bankruptcy and costing New Yorkers way too much to get from point A to point B. It was a system that stacked the deck for bad actors, not the honest, hardworking people behind the wheel.

With this reform, drivers are expected to save up to $300 per year in insurance costs. That’s real money for families living paycheck to paycheck, a crucial and urgent relief in an industry where the drivers expenses’ really add up. This isn't just a number on a spreadsheet. It's real help for New Yorkers struggling with the cost of living. It also means greater stability for an industry that moves more than 800,000 passengers each day and potentially even lower fares for those riders, making transportation more affordable for everyone.

Just as important, this bill protects drivers and passengers without sacrificing one bit of safety. NYC’s for-hire vehicle ecosystem already boasts robust layers of protection that don’t exist elsewhere. Drivers benefit from the Black Car Fund, which offers medical benefits and wage replacement, and yellow taxi drivers are covered by Workers’ Compensation. Lowering the insurance requirement doesn’t remove any essential safeguards – it simply eliminates a duplicative, costly burden that serves no real purpose other than to jack up expenses and open the door to fraud.

This reform also comes at a critical moment. The recent collapse of American Transit Insurance Company – which covered more than 60% of the for-hire vehicle fleet – exposed just how fragile the insurance system had become. By aligning our insurance rules with the rest of the state, we can reduce risk, attract more reputable insurers and create a more competitive, resilient market. At the same time, it also makes it harder for fraud rings to thrive.

Let’s not forget: this win didn’t happen in a vacuum. It was powered by the relentless advocacy of drivers – the people who live this affordability crisis every day. Their voices were joined by community leaders and policy experts who knew the system was broken and demanded better. I was proud to champion their fight and proud that the City Council responded with urgency and near-unanimous support.

Now, it’s time for the final step. I urge Mayor Eric Adams to sign this bill into law without delay. The for-hire vehicle industry has waited long enough. Every day of inaction costs drivers money that they cannot afford to lose. And every day without this reform is another day our insurance market remains unstable and vulnerable.

This bill is about fairness, common sense and responsive governance. It’s about protecting working-class New Yorkers and restoring balance to a system that had tilted far too heavily against them. And it’s about securing a transportation system that remains strong, affordable and resilient – for everyone who depends on it.