New York’s only nonprofit, membership-based carsharing service Ithaca Carshare has announced they’ll be pausing operations May 19th.
This is because of a failure of the market leading to a significant lack of auto insurance for nonprofits in New York State. This is not only an issue for Ithaca Carshare, but for thousands of other state nonprofits who need auto insurance. According to the New York Council of Nonprofits, many underwriters won’t write auto insurance for nonprofits they consider high risk.
These include organizations that transport the medically fragile, the elderly, and children.
New legislation introduced in the state government would change this by allowing nonprofit Risk Retention Groups to register in New York so they’re able to provide auto insurance to nonprofits across the Empire State.