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NYC TLC Approves New Insurance Rules, Wants To Freeze SHL Pilot at 550+ Plates

TLC Board officially approves no-fault insurance reforms, while signaling SHL Pilot cap at 550+ plates amid attrition and pending lawsuit

Following a September 3rd public hearing, the NYC Taxi & Limousine Commission (TLC) Board unanimously approved, on September 17th, a set of proposed rules related to:

  1. Wheelchair Accessible Vehicle (WAV) conversions

  2. Driver minimum pay (Uber / Lyft) out‑of‑town pay rate correction

  3. Personal Injury Protection (PIP), or no-fault, coverage change

  4. Cyclist‑awareness decals

As is customary at meetings where the Board votes, the TLC approved 47 base applications—45 renewals and two new bases, both located in the Bronx.

Russell Glynn, TLC’s Director of Policy Research, also gave a presentation on the SHL Pilot Program, recommended that the Board make permanent the 563 TLC plates still active in the SHL Pilot while freezing further license issuance.

It is worth noting that official rule proposals have not yet been published and could call for all 915 TLC plates issued during the course of the Pilot to be made permanent.

As discussed in more detail below, we believe the proposal to wind down the SHL Pilot may be connected to an ongoing lawsuit by the New York Taxi Workers Alliance (NYTWA).

Other Notes

Chair Do’s Opening Remarks
In his opening remarks, Chair David Do referenced a recent City Council hearing and ongoing challenges drivers face accessing restrooms and parking (Intro 1000). He said TLC is actively working with NYC DOT to expand relief stands for all NYC for-hire drivers.

Out-of-Town Driver Pay Rules
On the (now passed) driver pay rules correcting a typo, Board Commissioner Paul Bader highlighted the complexity of regulating out-of-town trips, especially those involving airports, specifically JFK. He noted that coordination with surrounding jurisdictions—including New Jersey, Connecticut, and Westchester / Nassau counties —is necessary to ensure drivers are fairly compensated for out-of-town trips.

Source: NYC Taxi & Limousine Commission (NYC TLC)

In practice, the Board vote was mostly a formality. For example, the City Council voted to lower NYC’s unique no-fault (PIP) for-hire vehicle (FHV) coverage requirement from $200,000 to $100,000 (still 2x the $50,000 NY state mandate). The TLC, an agency overseen by the Mayor, needed to formally approve already passed NYC Council legislation.

The new no-fault (PIP) insurance coverage rules go into effect March 1, 2026.


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SHL Pilot Update

TLC’s Director of Policy Research, Russell Glynn, presented an update on the Street Hail Livery (SHL) Pilot Program. Established in May 2023, the pilot created a new class of SHLs restricted to EVs, WAVs, and hybrids, designed to serve the outer boroughs with streamlined requirements compared to green cabs.

Source: NYC TLC

Glynn’s presentation highlighted steep attrition: while 915 drivers initially affiliated with the program, only 563 permits remained active as of June 2025—a ~40% drop, five times higher than other FHV license (TLC plate) attrition rates.

Presentation 09 17 25
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Source: NYC TLC

Despite the decline, active pilot vehicles performed strongly, averaging 900 trips in 2024 versus 500 for comparable FHVs. Glynn recommended making the pilot permanent for existing participants but effectively freezing issuance at current levels, ensuring only current permit holders remain eligible.

While TLC’s presentation framed the wind-down as a data-driven adjustment, AutoMarketplace believes the timing is closely linked to the New York Taxi Workers Alliance’s (NYTWA) ongoing legal challenge.

NYTWA has argued that the SHL Pilot unlawfully authorized ~2,500 new FHV licenses without conducting a driver income impact review. Their appeal contends that the additional vehicles risk oversaturating the market, cutting driver net pay by roughly 6%. Appellate judges have signaled skepticism of the city’s defense, raising the possibility that the program could be struck down or curtailed.

Against this backdrop, TLC’s decision to freeze the pilot looks less like a neutral phase-out and more like a strategic retreat in anticipation of legal limits on its authority to issue new FHV licenses (TLC plates).


Also available on YouTube ⬇️

TABLE OF CONTENTS

0:00 Introductory Remarks - NYC TLC Chair David Do 2:20 Base license applications 4:48 SHL Pilot presentation and TLC Board comments 13:21 TLC Board votes on proposals and comments

Direct link to NYC TLC meeting


AutoMarketplace reports on New York City’s for-hire transportation (TLC) industry and the wider automotive mobility landscape.

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