☂️📈 TLC Insurance Costs Set To Increase 8% to 10%+

American Transit, largest NYC FHV insurance provider, set to increase PIP & APIP insurance base rates 20%, plus make other changes. Given 50% market share, other TLC insurers will likely follow suit

Based on an American Transit (ATIC) “Producer Bulletin” (or a notice insurance brokers who sell ATIC policies receive), TLC liability insurance premiums could increase 8% to 10%+ for many NYC drivers and fleets, ahead of the annual renewal period early next year.

This is a BIG DEAL, as for-hire vehicle (FHV) insurance is a core expense for many TLC-licensed drivers, FHV fleets and bases that operate their own fleet (i.e., Revel).

In addition, annual inflation adjustments used in the TLC Driver Minimum Pay formula (remember, only applicable to Uber and Lyft), seem to use general inflation measures vs. TLC-industry specific cost inflation, which might not fully capture this prospective insurance inflation.

Source: Insurance broker

How Are We Estimating An 8% to 10%+ Increase In TLC Liability Insurance Costs?

We’ve estimated the 8% to 10%+ TLC insurance premium increase based on a sample TLC liability insurance policy (Note: Hereford (HIC) policy), which expires in March 2024 and was under…