Rates for D.C. taxis fall under 6-month policies

Insurance rates for taxicabs in the District of Columbia are being reduced as the result of a change in policy duration.

Acting Commissioner Thomas Hampton of the District of Columbia Department of Insurance, Securities and Banking said he anticipated the reductions following a lengthening of the policy term from two weeks to six months beginning Jan. 1.

“The lower rates reflect a more competitive marketplace for the District’s taxicab insurance premium,” said Hampton. “This is exactly what we wanted to see –a taxicab insurance industry that is more competitive and comparable to the rest of the country and the industry standards.”

For decades, D.C.’s taxicab insurance industry has used the two-week policy. As D.C. was the only jurisdiction still using this, it was difficult to competitively price or attract more insurers to the District, according to officials.

DISB required insurers to submit premium rate filings based on their own experience. As a result, Hampton said insurers lowered their rates to stay competitive. Out of the four taxicab insurance providers in the District–Amalgamated, Crown, Columbia Federal and Equitable Liability–three filed lower rates under the six-month policy. Crown, a captive, is not required to file rates.

“This is an important first step in reforming the industry,” said Causton A. Toney, chair, the District of Columbia Taxicab Commission. “In the end, taxicab owners will see wider options for providing better coverage at an affordable rate.”