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Uber Technologies Inc. is asking New York City’s taxi regulator to reconsider proposed changes to commercial auto insurance requirements, saying they may unintentionally leave thousands of drivers in one of the company’s largest markets unable to insure their vehicles.

Uber prepared written comments ahead of a public hearing to be held Wednesday by the Taxi and Limousine Commission, or TLC, regarding the proposed . As part of these changes, the regulator would add language requiring all TLC-licensed vehicles — including yellow cabs and rideshare cars — to be covered by an insurance policy issued by a “solvent and responsible company authorized to do business” in New York. It would also require minimum coverage to be provided by a single primary policy, prohibiting the use of supplementary insurance from non-state licensed firms.

New York City officials are weighing tighter insurance rules after Bloomberg reported that American Transit Å˽ðÁ«´«Ã½Ó³»­ Co., which covers 60% of the city’s roughly 120,000 for-hire vehicles, is and posted more than $700 million in net losses in the second quarter. The company has also faced about its ability to pay out claims in a timely manner. ATIC, which is still permitted to operate in New York State, built a customer base over several decades by offering premiums well below the market rate. Some drivers likely won’t be able to afford a pricier alternative if they can no longer choose ATIC under the TLC’s revised rules.

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New York State’s insurance regulator approved premium increases for ATIC this year in an effort to address the firm’s insolvency. Uber itself ATIC in a lawsuit of “a pattern and practice of failing to adhere to reasonable claims-handling practices and failing to reasonably resolve claims.” ATIC has denied the allegations and the suit is ongoing.

“Uber supports the commission’s goal of ensuring comprehensive coverage and insurance carrier solvency,” Uber attorney Nicholas Davoli wrote in the statement. However, he added, “Uber has significant concerns that the proposed changes will further upset” the for-hire vehicle insurance marketplace “and may unintentionally result in thousands of vehicle owners/drivers being unable to insure their vehicles.”

The rideshare giant argues the TLC has not clearly defined the terms “solvent” and “responsible” and asks for leniency on the adoption deadline. It also asked to allow existing policies to remain valid until they expire. In addition, the firm is urging the TLC to consider lowering personal injury protection limits to control insurance costs, in line with legislation the City Council in September.

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Uber is not the only opponent of the proposed rules. Dan Bratshpis, chief executive officer of Inshur, a digital insurance provider that works with gig-economy platforms like Uber and Amazon Flex, wrote in a prepared statement that the change to bar supplementary insurance threatens to kick its product out of the market. Inshur, which says it insures more than 7% of TLC vehicles with the backing of licensed Accident Fund Å˽ðÁ«´«Ã½Ó³»­ Co., is not regulated by the state but is allowed to operate legally in the market.

“The surplus lines product that we have in the market gives us pricing flexibility,” Bratshpis said, citing past comments by the state’s insurance regulator as well as the TLC’s general counsel in support of such a program. “This is the only way we have to compete with insolvent and irrational actors in the marketplace.”

Photo: NEW YORK, NY – JUNE 14: An Uber car waits for a client in Manhattan a day after it was announced that Uber co-founder Travis Kalanick will take a leave of absence as chief executive on June 14, 2017 in New York City. The move came after former attorney general Eric H. Holder Jr. and his law firm, Covington & Burling, released 13 pages of recommendations compiled as part of an investigation of sexual harassment at the ride-hailing car service. (Photo by Spencer Platt/Getty Images)

Topics Carriers Personal Auto