Uber Sues Insurer for Refusing to Cover NYC Drivers in Crashes

February 20, 2024 by

Uber Technologies Inc. sued an auto liability insurer for what it says is a consistent pattern of failing to honor coverage for New York City ride-share drivers who get into accidents.

American Transit Insurance Co.’s “unreasonable practices” handling claims has resulted in 23 lawsuits brought against Uber and its drivers over crashes involving bodily injuries, leaving the ride-share giant to pay “substantial amounts” to defend itself, according to the complaint filed late Friday in federal court in New York.

“ATIC’s detrimental conduct has negatively impacted thousands of New York City for-hire drivers,” Uber’s lawyers wrote.

Uber didn’t say in the complaint whether the insurer provided an explanation for the claims it didn’t cover. The complaint alleges breach of contract and seeks a court order requiring American Transit to defend and indemnify Uber in the crash lawsuits, as well as monetary damages.

Brooklyn-based American Transit didn’t respond to a request for comment outside regular business hours.

The case is Uber Technologies Inc. v. American Transit Insurance Company, 24-cv-01207, US District Court, Southern District of New York (Manhattan).

Top photo: NEW YORK, NY – JULY 30: A ride hailing vehicle moves through traffic in Manhattan on July 30, 2018 in New York City. After a significant increase in local traffic and a spate of suicides by taxi drivers, New York City is planning to vote on capping ride-sharing services such as Uber and Lyft. The City Council’s move to vote on the measures could come as soon as Aug. 8. If the vote was to succeed, New York City would become the first major U.S. municipality to cap ride-sharing services. (Photo by Spencer Platt/Getty Images) Photographer: Spencer Platt/Getty Images North America.