A US judge sided with Uber Technologies Inc. in its complaint that American Transit Insurance Co., the largest taxi insurance in New York City, failed to defend the ri
de-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 o
rder Tuesday. ATIC is liable for 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 ins
olvency. ATIC had, in part, bu
ilt its almost 60% market share on low policy rates. That has contributed to decades-lo
ng financial troubles as the company didn't have enough money to cover the losses it announced, Bloomberg News reported in 2024.
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 guarantees meet their obligations, but
See more beautiful photo albums Here >>>
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 reporter Josh Gold.
Uber has made a multimillion-dollar lobbying push for insurance reforms to help drive do
wn, 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.