NY Attorney General James is mandated to combat fraud endangering taxi insurers, in order to protect the well-being of all New York citizens.

New York City’s largest insurer for taxis, black cars, Uber, and other for-hire vehicles is on the verge of collapse, as reported by Bloomberg: American Transit Insurance Co. recently reported over $700 million in net losses.

If the company goes under, around 60% of the city’s more than 117,000 taxis and other vehicles lose their insurance coverage, meaning they cannot legally accept fares without obtaining new insurance.

This situation would make navigating the city, particularly areas with limited public transportation, much more challenging.

One of the main concerns highlighted in the analysis is the increase in claim sizes due to larger settlements and jury and arbitration awards.

Many of these claims are fraudulent, with insurers facing a rise in bogus claims involving commercial fleets such as ride-share cars and Amazon delivery trucks.

The high commercial-vehicle coverage requirement in the city has made such policies lucrative for opportunistic trial lawyers and fraudsters.

These scam rings, involving unethical lawyers, doctors, and litigation lenders, exploit small businesses and insurers for financial gain.

Criminal groups, including MS-13 and Russian mobsters, are also involved in these fraudulent activities by recruiting individuals to stage accidents and undergo unnecessary surgeries to inflate payouts.

Rex Heuermann, the accused Gilgo Beach killer, tried to take advantage of this system as well.

Last month, The Post reported Heuermann’s history of filing multimillion-dollar accident claims against motorists in various locations.

New York desperately needs tort reform to lower insurance costs and crack down on fraud rings.

Attorney General Letitia James, county district attorneys, and federal prosecutors must take action against these fraudulent activities.

The Legislature should consider passing new laws to target individuals who recruit victims or stage fake accidents.

Even if insurers do not go out of business or leave the market, consumers will end up paying higher prices as companies pass along the cost of rising premiums or exit the state.

Some suggest that ATIC contributed to its own problems by offering premiums too low to cover the risks, emphasizing the importance of addressing the root causes of these risks rather than advocating for a bailout.

Without addressing these issues, consumers may face significantly higher costs when trying to find a cab in the city.