Remember the 2010 The Rent Is Too Damn High campaign by Jimmy McMillan? Some people in New York now think insurance is too damn high.
A new coalition with backing from Uber Technologies is launching a campaign to lower insurance costs for consumers and small businesses in New York State.
The immigrant support and other community organizations behind Citizens for Affordable Rates (CAR) maintain that insurance costs for auto, home, and health insurance have become a “growing burden for families and businesses alike, adding to an already severe affordability crisis in the state.”
The founding members of CAR include Haitian Americans United for Progress, Inc., DSI International, the Council of Peoples Organization, WESPAC Foundation, and Bangladeshi American Community Development and Youth Services.
Ridesharing industry leader Uber, one of the members of the group, confirmed to Insurance Journal that it has committed to funding a multimillion dollar advertising and messaging campaign for the group. Uber has expressed concerns over insurance issues and costs in New York City.
“Insurance costs are skyrocketing in New York. As of November 2024, on average 25% of every rider’s fare goes directly to the mandatory insurance costs. We are working with CAR to try to find solutions to this problem so that riders can pay less and drivers can make more,” an Uber spokesperson told Insurance Journal.
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CAR’s formation comes at a time when New York City’s ride-for-hire insurance market is in crisis due to the insolvency of the market’s biggest insurer, American Transit Insurance Co. (ATIC). The state has ordered ATIC to consider selling assets to fix its financial situation. ATIC has claimed it has been the victim of a giant fraud scheme and has sued 180 medical providers.
Uber has sued ATIC, alleging the insurer has a “pattern and practice” of failing to resolve the claims of some of its drivers, which has in turn provoked 23 liability lawsuits against Uber.
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The CAR campaign aims to push for reforms to reduce insurance costs for everyday New Yorkers. The group says it will focus on mobilizing consumers and advocating for legislative and regulatory reforms. Uber’s multimillion-dollar ad buy of digital, television, and radio placements is slated to begin this month.
CAR is expected to support one proposal targeting an insurance rule that some blame for the high insurance costs for the city’s taxi and ride-share drivers. City Council Member Carmen De La Rosa wants to lower the required personal injury protection limit for commercial ride-share cars from $200,000 to $50,000, which is what ride-share vehicles in the rest of the state must buy. Advocates of the proposal maintain it will help lower premiums.
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According to CAR, auto insurance costs in New York are nearly 40% higher than the national average, with health and homeowners’ insurance also high. Insurance costs can account for 10-15% of rent expenses in many parts of New York City, the group claims.
The group maintains that low-income families are disproportionately burdened, as “rising premiums eat up a larger share of their budgets and exacerbate financial insecurity.”
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CAR also blames fraudulent claims and excessive litigation for driving up premiums, with estimates suggesting that false claims — such as those stemming from staged car crashes — account for up to 10% of total insurance payouts in New York.
“For too long, working New Yorkers have been left out of conversations about fairness and affordability. Addressing the root causes of exorbitant insurance rates and consumer costs gives our communities a much-needed voice. It’s time to stand up to Albany special interests, and the forces of greed and abuse to ensure no family is priced out of the metro area anymore,” said Nada Khader, WESPAC Foundation director.
“Skyrocketing consumer costs are crushing immigrant families and small businesses across New York, especially in our communities. And no one has fixed it,” said Aasma Mehdi, of the Council of Peoples Organization, which serves the South Asia community.
Topics New York Sharing Economy Ridesharing
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