The Black Car Fund is a workers' compensation program for New York taxi and for-hire vehicle drivers

The Black Car Fund is a self-insurance workers' compensation program created by New York State law in 1996. It covers drivers of for-hire vehicles — primarily black cars, livery cars, and other high-end car services — who are not covered by traditional workers' compensation insurance through an employer. The program is funded by a per-trip surcharge that passengers pay when they book a ride, not by the driver or the car service directly.

The Fund covers medical expenses, lost wages, and disability benefits if a driver is injured while working. It operates separately from the Taxi and Limousine Commission (TLC) and from Uber or Lyft's insurance policies. Drivers who work for licensed for-hire services in New York City and surrounding areas may be covered automatically, though coverage depends on whether the car service has registered with the Fund.

Unlike traditional workers' compensation, which an employer purchases and manages, the Black Car Fund is a collective pool. Every passenger trip generates a small surcharge — currently $2.50 per trip in New York City — that goes into the Fund to pay claims. This structure means drivers do not pay premiums themselves, but they also do not choose their coverage; it is determined by state law and Fund rules.

Key Takeaways

  • The Black Car Fund covers medical bills and lost wages for for-hire vehicle drivers injured while working in New York, funded by a per-trip passenger surcharge rather than driver premiums.
  • Coverage is automatic for drivers working for licensed car services that have registered with the Fund, but only if the driver meets the Fund's definition of a covered worker.
  • The Fund pays medical expenses without a deductible, covers two-thirds of lost wages after a waiting period, and provides disability benefits for permanent injuries.
  • Drivers must report injuries to their car service within 30 days and file a claim with the Fund within two years of the injury date to receive benefits.
  • The Fund does not cover independent contractors or drivers who own their own vehicles and operate as sole proprietors, even if they are licensed by the TLC.

Who is covered and who is not

The Black Car Fund covers drivers who work for a licensed for-hire service that has registered with the Fund and who meet the definition of an employee or agent of that service. This includes drivers of black cars, livery vehicles, car services, and other for-hire vehicles operating in New York. The key requirement is that the driver must be working under a service's license, not operating independently.

Drivers who are classified as independent contractors, own their own vehicles, or operate as sole proprietors are not covered by the Fund, even if they hold a TLC license. Similarly, drivers who work for services that have not registered with the Fund are not covered. Uber and Lyft drivers are also not covered by the Black Car Fund; they are covered by the rideshare companies' own insurance policies, which operate under different rules.

If you are unsure whether your car service is registered with the Fund, you can contact the Black Car Fund directly or ask your dispatcher or manager. The Fund maintains a list of registered services, and you have the right to know whether your employer has enrolled you in the program.

What injuries and expenses the Fund covers

The Black Car Fund covers medical treatment for work-related injuries, including doctor visits, hospital care, surgery, physical therapy, and prescription medications. There is no deductible, and you do not pay out of pocket for covered medical care. The Fund pays medical providers directly when the injury is deemed work-related.

The Fund also covers lost wages if an injury prevents you from working. You receive two-thirds of your average weekly wage, but only after a waiting period. The waiting period is typically seven days; if you are out of work for more than two weeks, the Fund may pay you back for the first seven days retroactively. For permanent disabilities — injuries that result in lasting loss of function — the Fund provides additional lump-sum payments based on the severity and body part affected.

The Fund does not cover injuries that occur off the job, injuries caused by the driver's own willful misconduct, or injuries from accidents the driver caused through gross negligence. It also does not cover pre-existing conditions or injuries unrelated to work.

How to report an injury and file a claim

If you are injured while working, report the injury to your car service manager or dispatcher as soon as possible, and within 30 days of the injury date. Your employer is required to provide you with a claim form — the official name is the C-2 form (Employee's Claim for Workers' Compensation Benefits). Do not delay; reporting within 30 days is important for your claim to be processed without complications.

Complete the C-2 form with details about the injury, when it happened, where it happened, and what you were doing at the time. Your car service should also complete their portion of the form. Once both sections are filled out, send the form to the Black Car Fund. You must file your claim within two years of the injury date, though filing sooner is always better.

Keep copies of all medical records, receipts, and documentation of lost wages. If your claim is denied or if you disagree with the amount the Fund is offering, you have the right to request a hearing before a Workers' Compensation Law Judge. The Fund will provide information about how to request a hearing if your claim is disputed.

The difference between the Black Car Fund and rideshare insurance

Uber and Lyft drivers are not covered by the Black Car Fund. Instead, they are covered by insurance policies provided by the rideshare companies themselves. These policies operate under different rules and often have different coverage limits and waiting periods. Rideshare insurance typically covers medical expenses and some lost wages, but the structure and amounts differ from the Black Car Fund.

Traditional taxi drivers in New York are covered by the Taxi and Limousine Commission's workers' compensation program, not the Black Car Fund. That program has its own rules and claim procedures. If you drive for a yellow cab medallion holder, you would file claims through the TLC's system, not the Black Car Fund.

The Black Car Fund exists specifically for drivers of high-end car services and livery vehicles who are not covered by these other programs. Understanding which program covers you depends on who you work for and what type of vehicle you drive.

How the Fund is funded and what it costs passengers

The Black Car Fund is funded entirely by a per-trip surcharge paid by passengers. In New York City, this surcharge is currently $2.50 per trip. The surcharge appears on the passenger's receipt and is collected by the car service, which then remits it to the Fund. Drivers do not pay this surcharge themselves; it is a passenger cost.

The surcharge amount can vary depending on the service area and may be adjusted by the Fund if claims increase or decrease. The Fund publishes its financial reports and claim data publicly, so you can see how the money is being used. Because the Fund is self-insured and operates as a collective pool, the surcharge is the only way the program stays solvent.

This funding model means that drivers do not have to negotiate or purchase insurance individually, but it also means that all drivers in the system share the cost of claims. If claims rise, the surcharge may increase; if claims fall, it may decrease.

Frequently Asked Questions

What do I do if my car service says they are not registered with the Black Car Fund?

Contact the Black Car Fund directly to confirm whether your service is registered. If your service is not registered, you are not covered by the Fund. You may want to ask your employer why they have not registered, as it is a legal requirement for most licensed for-hire services in New York. If you believe your service should be registered, you can file a complaint with the TLC.

How long does it take to receive payment after I file a claim?

Medical bills are typically paid directly to providers within 30 to 60 days of the claim being approved. Lost wage payments usually begin after the waiting period ends and can take an additional two to four weeks. If your claim is complex or disputed, it may take longer. The Fund will notify you of the status of your claim.

Can I choose my own doctor, or does the Fund assign one?

You have the right to choose your own doctor for initial treatment. However, the Fund may require you to see a doctor of their choice for an independent medical examination if your claim is disputed or if treatment is ongoing. Always inform your doctor that the injury is work-related so the bill is sent to the Fund, not to you.

What happens if I am injured but my car service did not register me with the Fund?

If your service is not registered with the Fund, you are not covered. However, you may have other options. You could file a complaint with the TLC or the Department of Labor, or you could pursue a claim against your employer directly. Consult with a workers' compensation attorney to understand your rights in this situation.

Does the Black Car Fund cover injuries from accidents caused by other drivers?

Yes, if you are injured in an accident while working, the Fund covers your medical expenses and lost wages regardless of who caused the accident. The Fund may pursue a subrogation claim against the at-fault driver's insurance to recover some of its costs, but that does not affect your benefits. You should still report the accident to police and exchange information with the other driver.