A US judge sided with Uber Technologies Inc. in its complaint that American Transit Insur
ance Co., the largest taxi insurance in New York City, failed to defend the ride-hailing company in cra
sh cases involving its drivers.
ATIC breached its dut
y to defend Uber in 23 lawsuits brought against the rideshare company and its drivers over cras
hes involving bodily injuries, US District Judge Analisa Torres said in an order Tuesday. ATIC is responsible f
or 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 i
nsolvency. 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 claims, Bloomberg News reported in 2024.
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In its February 2024 complaint, Uber said ATIC's failure to honor coverage for its driver
ers left Uber to pay “substantial amounts” to defend itself.
“The court's decision is an important step toward ensuring guarantees meet their obligations, bu
t 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 attender Josh Gold.
The company has also filed
several racketeering lawsuits around the country, including in New York, Los Angeles and Florida
a, accused law firms and clinics of taking advantage of insurance policies and getting large payouts.