Taxi drivers operating in London, Ontario, are beginning to feel the heat, as their insurance premiums continue to climb – even double, in some cases.
Insurance costs have reached such a high price point that local taxi companies in the city such as Yellow Taxi are at risk of losing their drivers.
CBC News reported that Yellow Taxi has a fleet of 150 cars in London, ON, but only 90 are currently working.
“Historically, the insurance industry’s approach to the taxi industry has been abusive,” said Yellow Taxi president and CEO Hassan Savehilaghi.
“Many times, we’ve done our best to communicate with the authorities who are the regulators of the insurance brokers and the insurance companies, but so far, we’ve never had a positive reaction or any kind of indication that authorities are willing to do anything at all.”
Savehilaghi added that he considers insurance “a cancer to the industry’s wellbeing,” noting that insurance premiums for drivers can suddenly jump from 30% to as high as even 100%.
“They don’t explain why they have to charge you that much.”
The CEO explained that the last insurance hike in spring was so unexpected, that 24 of his company’s drivers said they wanted to quit because the premiums were enough to put them out of business. To help those drivers, Yellow Taxi agreed to shoulder a quarter of the insurance premium increases.
One Yellow Taxi driver, Radovan Millinkovic, told CBC News that his rates have risen more than $5,000 over the last couple of years, despite never experiencing an accident or ticket during that time. Millinkovic also commented that the rising insurance costs of taxis puts them at a severe disadvantage against rideshare companies, who do not pay as much for coverage.
