Taxi and For-Hire Vehicle Accidents in New York City: Understanding Liability and Your Rights
November 17, 2025
New York City’s streets are filled with taxis, Uber and Lyft vehicles, and other for-hire cars — all operating under the New York City Taxi & Limousine Commission (TLC). While these vehicles keep the city moving, accidents involving them often raise complex legal issues about insurance, ownership, and regulation.
At LFK Law Practice, P.C., we help injured passengers, pedestrians, and motorists navigate the special rules governing taxi and for-hire vehicle (FHV) crashes and secure the compensation they deserve.
1. The Role of the Taxi & Limousine Commission (TLC)
The TLC regulates all licensed yellow cabs, green cabs, black cars, and app-based for-hire services like Uber and Lyft in New York City. Its purpose is to maintain safety, accountability, and insurance compliance across the city’s transportation network.
Under TLC regulations:
- All licensed vehicles must carry commercial liability insurance (usually higher than standard private coverage).
- Drivers must hold valid TLC licenses and pass drug testing, background checks, and annual medical evaluations.
- Owners and base companies are required to maintain vehicles and ensure compliance with inspection standards.
When a taxi or rideshare fails to follow these safety standards — for example, skipping maintenance or operating without required insurance — that violation can support a negligence claim.
Example: If a TLC-licensed taxi causes an accident due to bald tires or faulty brakes, both the driver and the medallion owner may be liable under TLC regulations.
Sources:
2. Medallion Owner and Operator Liability
Every yellow taxi in New York operates under a medallion system — a numbered license issued by the TLC that allows the vehicle to pick up street hails. Often, the person driving the cab is not the medallion owner but rather leases the cab through an operator or base company.
When a crash occurs, liability can extend beyond the driver:
- The driver is responsible for negligent or reckless driving.
- The medallion owner may be liable for vehicle maintenance failures or inadequate insurance coverage.
- The base company can share liability if dispatch, supervision, or compliance duties were neglected.
Under New York Vehicle and Traffic Law §388, vehicle owners are vicariously liable for the negligence of drivers operating their vehicles with permission. This means both the driver and medallion owner can be named in your claim.
Example: If a leased taxi strikes a pedestrian while the driver was working a legitimate shift, the injured party can seek recovery from both the driver and the medallion owner’s insurance.
Sources:
- New York Vehicle & Traffic Law §388 — Liability of Owner for Negligence
- NYC TLC Medallion System Overview
3. Passenger vs. Other Vehicle Occupant Claims
Passengers injured in a taxi or rideshare crash are almost never at fault, but identifying the proper insurer can be complicated. Coverage depends on who caused the accident and whether the vehicle was operating under TLC authority.
Passenger claims typically involve:
- Single-vehicle collisions (e.g., the taxi crashes into a pole).
- Multi-vehicle accidents where fault is disputed.
- Reckless or careless driving behavior (speeding, phone use, or unsafe lane changes).
If you were injured as a passenger, your claim may involve no-fault benefits for medical bills and lost wages (up to $50,000), plus a liability claim against the negligent driver or owner for additional damages.
If you were another driver, cyclist, or pedestrian, you can also recover from the taxi’s commercial insurance if that driver was at fault.
Typical coverage amounts:
- Taxis: at least $100,000 per person / $300,000 per accident in liability coverage.
- Uber/Lyft: up to $1 million in coverage when the app is active and carrying a passenger.
Sources:
- New York State Department of Financial Services — No-Fault Insurance Law
- Uber Safety and Insurance Information
- Lyft Auto Insurance Policy Summary
4. Hit by a Taxi or For-Hire Vehicle: What to Do
If you’re a pedestrian or cyclist struck by a taxi, Uber, or Lyft vehicle, the steps you take immediately after the crash can make or break your claim.
Here’s what to do:
- Call 911 and seek medical care — even if injuries seem minor.
- Take photos and videos of the scene, including the taxi’s medallion or TLC plate number.
- File a report with both the NYPD and the Taxi & Limousine Commission.
- Request insurance details from all involved drivers.
- Notify your insurer under New York’s no-fault system.
- Contact an attorney experienced in TLC-regulated accident cases before speaking with insurers.
Because TLC vehicles often involve multiple layers of ownership and insurance, it’s crucial to act fast. Most commercial insurers and TLC-regulated operators must be notified within 30 days of an accident.
Sources:
- NYC TLC — Reporting an Accident Involving a TLC-Licensed Vehicle
- New York State DMV — Accident Reporting Requirements (MV-104)
- New York Vehicle & Traffic Law §605 — Duty to Report Accidents
How LFK Law Practice, P.C. Helps After a Taxi or FHV Accident
At LFK Law Practice, P.C., we represent victims of taxi, Uber, Lyft, and other for-hire vehicle crashes throughout New York City. Our legal team:
- Reviews TLC safety and inspection compliance.
- Identifies all liable parties — including medallion owners, base operators, and insurers.
- Collects crash reports, video footage, and maintenance records.
- Works with accident reconstruction and medical experts.
- Pursues maximum compensation for injuries, lost income, and pain and suffering.
If you’ve been injured in a TLC-regulated taxi or for-hire vehicle accident, contact LFK Law Practice, P.C. today. We’ll help you navigate New York’s no-fault and liability systems to protect your rights and your recovery.
Frequently Asked Questions About NYC Taxi & For-Hire Vehicle Accidents
Who is responsible if a taxi driver causes an accident?
Both the driver and the vehicle owner or medallion holder may be liable. Under VTL §388, owners are vicariously responsible for negligent operation by permissive drivers.
Can I sue the taxi company or medallion owner directly?
Yes. If they failed to maintain the vehicle, verify driver qualifications, or provide insurance, they can be named in your claim.
What if I was injured as a taxi passenger?
You’re covered under no-fault insurance for immediate medical costs and can pursue a personal injury claim for further damages.
What if I was hit as a pedestrian by a taxi or Uber?
Pedestrians may file claims under their own no-fault insurance and the at-fault driver’s commercial policy. Serious injuries allow you to sue for full compensation.
Are Uber and Lyft drivers covered under TLC rules?
Yes. Since 2017, app-based services have been regulated by the TLC and must meet the same insurance and licensing standards as traditional taxis.
