Yellow cabs and black cars both carry passengers across New York City, and both need TLC-approved commercial insurance. But the way each one is insured can look quite different, from who buys the policy to what other coverage drivers may need.
Whether you’re getting started as a TLC driver or thinking about switching, here’s how yellow cab insurance and black car insurance compare.
Yellow Cabs and Black Cars: The Basic Difference
Before comparing insurance, it helps to understand how each vehicle operates:
Yellow cabs are medallion taxicabs. They can pick up passengers who hail them on the street, in addition to other trips.
Black cars are for-hire vehicles affiliated with a black car base. Trips must be prearranged through the base or an app, and many Uber and Lyft vehicles in NYC are affiliated with black car bases.
These differences shape who is responsible for the policy, how insurers look at the risk, and what extra coverage may make sense.
What Both Have in Common
Both types of vehicles must carry commercial insurance that meets TLC requirements. A personal auto policy is not enough for TLC work. According to the TLC, the minimum requirements for both medallion taxis and black cars that seat up to seven passengers are:
Bodily injury liability: $100,000 per person
Bodily injury liability: $300,000 per accident
Property damage liability: $10,000
Personal Injury Protection (PIP, or no-fault): $100,000 per person
The PIP minimum was lowered effective March 1, 2026, so older articles may still list a higher figure. Black cars that seat eight or more passengers have higher requirements. These are only minimums, and rules can change, so confirm current requirements with the TLC.
Who Buys the Policy
This is one of the biggest practical differences between the two:
Yellow cabs: Insurance is tied to the medallion vehicle and is generally arranged by the medallion owner or the fleet or agent that manages it. If you lease a cab, insurance is usually part of that arrangement, so ask what is covered and request proof of coverage.
Black cars: The vehicle owner usually buys the policy. The insurer issues an FH-1 certificate, which is needed to license the vehicle with the TLC, and your base must also confirm the vehicle’s affiliation.
If you own your black car, keeping the policy active is your responsibility, since a lapse can affect your TLC vehicle license.
How the Vehicle Is Used
Insurers generally look at how and where a vehicle operates when setting rates:
Street hails: Yellow cabs often make frequent pickups in heavy traffic, and insurers may factor that exposure into pricing.
Prearranged trips: Black cars work through a base or app, and the base you’re affiliated with may matter to your insurer.
Changing bases: If you switch black car bases, your insurance information may need to be updated.
Workers’ Compensation and Driver Benefits
Your auto policy isn’t the only coverage that matters. Black car drivers dispatched through member bases are generally covered by the New York Black Car Fund for injuries on the job. The fund is paid for through a surcharge on passenger fares, not through your auto policy.
Yellow cab drivers aren’t covered by the Black Car Fund in the same way. If you drive a yellow cab, it’s worth asking your fleet, medallion owner, or a licensed professional what injury and disability protection may be available to you.
Protecting the Vehicle Itself
TLC minimums cover liability and PIP. They generally don’t pay to repair or replace your own vehicle after an accident, theft, or storm damage. For that, you may need:
Collision coverage for damage to your vehicle in an accident
Comprehensive coverage for theft, vandalism, fire, flooding, or falling objects
These coverages are generally optional, unless a lender or lease agreement requires them. Black cars are often newer or higher-value vehicles, so many owners consider this protection. Yellow cab owners may weigh it based on the vehicle’s age and value.
What Can Affect Your Premium
Premiums for both yellow cabs and black cars may depend on factors such as:
| Your driving record and TLC license history | Past claims |
|---|---|
| The vehicle’s type, age, and value | Your base affiliation (black cars) or medallion and fleet arrangement (yellow cabs) |
| The coverage limits and deductibles you choose | Where the vehicle is garaged |
Comparing quotes with the same limits and deductibles makes differences easier to see.
Things to Consider Before You Choose or Switch
Insurance is only one part of the decision. Ask yourself:
Do you want to own your vehicle and policy, or lease a cab with insurance arranged for you?
Are you prepared to manage policy renewals and keep your FH-1 current?
How much protection do you want for the vehicle itself?
How will insurance costs fit into your monthly budget?
How Freedom Line Brokerage Can Help
Freedom Line Brokerage works with TLC drivers and vehicle owners across New York City. We can help you:
Understand TLC insurance requirements and your FH-1 certificate
Compare commercial insurance options for your vehicle
Review whether higher limits, collision, or comprehensive coverage may make sense for you
Keep your coverage up to date when you renew or change bases
We also offer TLC license renewal services and tax preparation for TLC drivers, so you can handle more of your paperwork in one place.
The Bottom Line
Yellow cabs and black cars share the same TLC minimum insurance requirements, but they differ in who buys the policy, how the vehicle is used, and what extra protection drivers may need. Knowing those differences can help you choose the right coverage and avoid gaps. If you have questions about TLC insurance, contact Freedom Line Brokerage.
Freedom Line Brokerage
75-25 31st Avenue, East Elmhurst, NY 11370 · (718) 937-6180 · freedomlinebrokerage.com
This article is for general informational purposes only and is not insurance, legal, or financial advice. Coverage availability, terms, and pricing vary by insurer and situation. Consult a licensed insurance professional about your needs.
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