Q&A
Challenges facing the commuter van industry, particularly high insurance costs
0:49:03
·
112 sec
Council Member Brooks-Powers asks about the toughest challenges facing the commuter van industry. Leroy Morrison identifies high insurance costs as the primary issue and discusses efforts to address this problem.
- Morrison states that insurance costs have risen to about $50,000 per year for commuter vans
- He mentions a bill passed in Albany aimed at lowering insurance costs for all for-hire vehicles
- Insurance costs vary by borough, with Brooklyn facing higher rates than Queens
- Morrison emphasizes that high insurance costs are the main factor preventing commuter vans from returning to service
- He describes the industry's efforts to raise funds to pay insurance premiums and get vans back on the street
Selvena N. Brooks-Powers
0:49:03
Mister Morrison, what are what are the toughest challenges facing the commuter van industry?
0:49:08
Was the decline in the commuter van market due to the pandemic and the market has simply failed to bounce back or are there other factors that have led to the industry shrinking?
Leroy Morrison
0:49:20
Well, our our main problem, ma'am, is why it's it's not come it's not shrinking.
0:49:26
It's the insurance cost went up to about $50,000.
0:49:29
So I have a bill that I just passed in Albany also to to lower the cost of it's not only just commuter vans.
0:49:36
It's for all for hire vehicle, for black cars, ambulance, commuter vans, so we can have a better lower cost insurance system in New York City.
0:49:46
As you know, madam chair The black cars as as one incident.
0:49:52
They're paying if they have a local car service, they're paying 10500 a year with American Transit.
0:49:59
And if they're local Uber, they're paying $45100 a year.
0:50:03
With the same American transit.
0:50:05
So what we're trying to do is bring in more volunteer insurance market to New York City, so we can have affordably insurance, we could bring back commuter vans.
0:50:14
So right now, we we are looking to put these commuter vans back out but the insurance cost was the problem that we was having in New York City, and that's the only problem now owing back.
0:50:25
But we should be out soon because we have the sub the money that I raised to pay into the insurance so these communivans could get back in the street again.
0:50:35
So it was very tough with communivans.
0:50:37
As you know, the price went up from 10,000 to 55,000.
0:50:41
In Queens, it's 45,000 a year now.
0:50:44
In Brooklyn, it's about $50,000 a year for a licensed commuter vans on the street.
0:50:49
So we've been going through insurance crisis, but we're trying a a small business.
0:50:53
We strive to drive, ma'am.