Financial Crisis Looms Over NYC’s Largest Taxi Insurer, American Transit

American Transit Insurance Co. (ATIC), a 52-year-old family-owned company, insures over 60% of New York City’s commercial taxis, rideshare, and black cars, yet it faces severe financial trouble. The insurer has posted over $700 million in net losses and could soon be placed into receivership or liquidation.

Analysts have long warned about ATIC’s low reserves and underpriced premiums, which now risk leaving tens of thousands of drivers uninsured. The New York Department of Financial Services (DFS) may intervene, as experts fear a collapse would disrupt the city’s transportation sector, potentially causing a significant spike in insurance premiums for taxi and rideshare operators.

Uber has also sued ATIC over failure to handle claims properly, further highlighting the company’s challenges.