Written by Liz Field, Director of Ithaca Carshare
Yesterday, we sent an email to our 1,500+ members letting them know the unfortunate news that we must pause operations starting May 19. This is due to a market failure that has led to a severe lack of auto insurance for nonprofits in NYS.
New York State insurance regulators prohibit Risk Retention Groups (RRGs) from writing auto insurance in NYS unless they are domiciled here. This problem is unique to our state, as federal law explicitly allows RRGs domiciled in one state to write automobile insurance in other states.
There is one insurance company, a RRG domiciled in Vermont, who is willing to write auto insurance for Ithaca Carshare, but they are prohibited by NYS insurance regulators.
For many months we’ve been searching for auto insurance, but so far we haven’t found any other private or commercial insurance company willing to write it for us, despite our 15-year history with excellent loss runs.
It’s beyond unfortunate that this state regulation prohibits us from securing auto insurance and therefore prevents us from continuing to provide this critical service.
We’ve heard from many elderly and disabled members who rely on Ithaca Carshare to pick up prescriptions, get to medical appointments, or run regular errands at times or to places when the public buses don’t run.
Ithaca Carshare’s two fully Electric Vehicles (EVs).
This issue also has prevented us from working on our 2023 goals, including electrifying our fleet with grant money from NYSERDA, expanding our low-income Easy Access program, and working with the City of Ithaca and private businesses to increase Electric Vehicle (EV) charging infrastructure throughout the city.
Our small, nonprofit, community-focused service aligns with the state’s Climate Act, as well as Governor Hochul’s priorities to reduce emissions and promote equity in transportation, so it’s been disheartening and disappointing to be met with such a roadblock to innovation.
For fifteen years, we’ve provided 24/7 access to vehicles for local trips to people who can’t or choose not to buy their own vehicle, we’ve helped increase access to private mobility options for people in low- to moderate income neighborhoods, and we’ve reduced traffic and carbon emissions in our city, something that is desperately needed in our region.
We’re going to keep fighting to change this regulation, so we can serve Ithaca for at least another fifteen years. Please help us keep the pressure up by writing to Governor Hochul and your state legislators today.
If you’re new to this issue, you can learn more here:
https://www.ithacacarshare.org/insurance-updates/
Warmly,
Liz