What Is TLC Insurance in NYC?
Last Updated on June 2, 2023
If you drive for Uber, Lyft, or a New York City taxi company, you may require taxi and limousine (TLC) insurance.
TLC insurance is a particular type of coverage required when operating in New York City. New York City is one of the few cities in America requiring special coverage for rideshare, private transportation, taxi, limo, and Uber and Lyft drivers.
Keep reading to learn everything you need about TLC insurance in New York City and how it works.
At a Glance:
- TLC insurance is a specific type of coverage required for for-hire vehicles in New York City. TLC stands for “Taxi and Limousine Commission,” which regulates the operation of taxis, car services, and other city-hire vehicles.
- TLC insurance provides comprehensive coverage for drivers, passengers, and pedestrians. It typically includes liability coverage, personal injury protection, and coverage for property damage. TLC-licensed drivers need to have this insurance to operate their vehicles legally.
- TLC insurance rates can vary depending on several factors, such as the driver’s age, driving record, and the type of vehicle. Drivers need to shop around and compare quotes from different insurance providers to find the best coverage at an affordable price.
- Maintaining a clean driving record and completing defensive driving courses can help TLC drivers secure lower insurance rates. Insurance companies often consider a driver’s history when determining premiums, so practicing safe driving habits and staying accident-free can lead to lower insurance costs over time.
TLC Insurance Explained
TLC insurance is a special type of insurance policy required for most professional drivers in New York City.
Since 1971, the New York City Taxi & Limousine Commission (TLC) has regulated all taxis, limousines, and similar services operating in New York City. Over time, the insurance required by that organization has become known as TLC insurance.
Whether you drive a taxi, limousine, private car, Uber, or Lyft in New York City, you must carry TLC insurance. It’s a legal requirement for vehicles operating within New York City.
How TLC Insurance Works
The New York City Taxi & Limousine Commission verifies all taxis operating in the New York City area have a certain minimum amount of coverage.
Per TLC requirements, you must carry a certain minimum amount of liability insurance, including property damage and bodily injury liability coverage. These coverages protect other people and property damaged due to your actions.
TLC insurance also includes personal injury protection and uninsured motorist coverage.
The average TLC insurance policy in New York City costs around $125 to $200 per month, or $1,500 to $2,400 per year.
Who Requires TLC Insurance in NYC?
Virtually everyone who provides driving services in New York City must carry TLC insurance. You cannot legally operate a for-hire vehicle (FHV) in New York City without TLC insurance.
If you are picking up and transporting fare-paying passengers around New York City, you are generally required to carry TLC insurance.
Some of the people who require TLC insurance in NYC include:
- Uber and Lyft drivers
- Black car drivers
- Livery drivers
- Green and yellow taxi drivers
- Limousines and luxury limousines
- Commuter van drivers
- Paratransit service drivers
Why Do I Need TLC Insurance?
You need TLC insurance because your ordinary personal insurance policy does not cover you when driving for commercial purposes in New York City.
As soon as you start driving your vehicle for Uber or Lyft, your personal insurance policy stops covering you. Although Uber and Lyft provide basic coverage when actively driving to passengers and picking them up, they provide limited coverage between rides. TLC insurance works similar to an ordinary commercial policy, covering you between rides.
Whether you drive for Uber, Lyft, a taxi company, or a limousine company, you need TLC insurance for protection and peace of mind. It protects other people and property from your actions, and it protects your passengers. Without TLC, you could be forced to pay out of pocket for certain damages – especially if you only carry personal coverage on your vehicle.
What Does TLC Insurance Cover?
TLC insurance covers different things for different drivers. Some drivers have higher limits than others. However, some of the things covered by TLC insurance include:
Liability coverage, including property damage liability coverage, which covers any damage you cause to another person’s property. If you crash into someone’s vehicle while driving in NYC, for example, then your TLC insurance’s property damage liability coverage covers this damage.
Personal injury protection (PIP) coverage, which covers medical expenses, lost wages, rehabilitation costs, and certain other expenses after an accident, regardless of who is at fault.
Uninsured motorist coverage, which covers certain damages after a collision with a driver who does not have liability insurance.
Minimum TLC Insurance Requirements
According to the New York City Taxi & Limousine Commission, coverage requirements vary for different types of vehicles.
Livery vehicles and black cars, for example, have different required limits than luxury limousines and commuter vans.
However, most vehicles fall under the 1-7 passenger vehicle minimum insurance requirements, which include the following:
- $100,000 of liability coverage per person
- $300,000 of liability coverage per accident
- $200,000 of personal injury protection
The more seats you have in your vehicle, the higher your requirements will be. Those who drive a 20-passenger luxury limousine, for example, require $5 million of liability coverage per accident and a $200,000 personal injury protection policy.
You can view specific TLC insurance requirements here.
How Much Does TLC Insurance Cost in NYC?
TLC insurance is similar to a commercial car insurance policy.
Generally, you can expect to pay $125 to $200 monthly for TLC insurance in NYC.
However, the cost of TLC insurance varies widely based on many factors, including:
- Driving history
- Years of experience as a commercial driver
- Claim and accident history
- Police and citation history
- Vehicle make, model, type, and safety rating
- Driver age
A young and inexperienced driver with one at-fault accident in the last three years may spend more than $200 annually on TLC insurance in NYC. Meanwhile, an older, experienced driver with a clean driving record could spend less than $125.
How to Buy TLC Insurance
You can buy TLC insurance through auto insurance brokers operating in New York City.
Local insurance brokers can help you find the right TLC insurance for your unique needs.
Some brokers shop around with multiple insurers to find the best coverage at the cheapest price. Other brokers offer specific coverage for unique needs, including black car insurance, yellow cab insurance, green taxi insurance, livery vehicle insurance, or paratransit insurance, among other unique policies.
New York State’s DMV recommends checking a list of licensed insurance companies at their official website, then choosing an insurer from that list for your TLC coverage.
Final Word
New York City is one of the few cities in America requiring drivers to carry a special type of car insurance.
According to the New York City Taxi and Limousine Commission (TLC), certain drivers must always carry “TLC insurance” when operating in New York City. TLC insurance includes property damage liability coverage, personal injury protection coverage, and uninsured motorist coverage.
TLC insurance works similarly to a commercial auto insurance policy. Whether you’re driving for a rideshare company in New York City or anywhere else, you need a commercial policy. Otherwise, your personal policy will not cover you.
To learn more about New York City’s TLC insurance requirements, contact local insurance brokers or visit NYC.gov today.
