A US judge sided with Uber Technologies Inc. in its complaint that American Transit Insurance Co., the largest taxi insurer in New York City, failed to defend the ride-hailing company in crash cases involving its drivers.
ATIC breached its duty to defend Uber in 23 lawsuits brought against the rideshare company and its drivers over crashes involving bodily injuries, US District Judge Analisa Torres said in an order Tuesday. ATIC is liable for resulting damages, and is also required to pay for Uber’s legal fees in the lawsuits.
ATIC did not immediately respond to a request for comment.
The decision comes as the city’s for-hire vehicle industry has been reeling from ATIC’s insolvency. ATIC had, in part, built its almost 60% market share on low policy rates. That has contributed to decades-long financial troubles as the company didn’t have enough money to cover the losses it insured, Bloomberg News reported in 2024.
Read More: NYC’s Top Taxi Insurer Is Insolvent, Risking Transit Chaos
In its February 2024 complaint, Uber said ATIC’s failure to honor coverage for its drivers left Uber to pay “substantial amounts” to defend itself.
“The court’s decision is an important step toward ensuring insurers meet their obligations, but it doesn’t change the bigger reality that New York’s system is being exploited in ways that drive up costs for everyone,” said Uber spokesperson Josh Gold.
Read More: New York Says Cab, Rideshare Insurance Rates to Rise 25%
Uber has made a multimillion-dollar lobbying push for insurance reforms to help drive down costs, including supporting New York Governor Kathy Hochul’s recent proposals to crack down on staged-crash fraud and lawsuit abuse.
The company has also filed several racketeering lawsuits around the country, including in New York, Los Angeles and Florida, accusing law firms and clinics of taking advantage of insurance policies and getting large payouts.
Photo: Uber signage on a vehicle in New York, US, on Thursday, Aug. 8, 2024. Photographer: Yuki Iwamura/Bloomberg
Copyright 2026 Bloomberg.
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