The City Council has approved a 17.5% fare increase for the city's only licensed taxicab company. It is the first increase since 1981.
The request for higher fares was prompted by a continuing rise in insurance affecting Wilmington Cab Co. of California, which operates in Torrance as United Checker Cab, according to city officials.
The fare for an average ride will increase to $9.40 from $8, according to a city staff report.
Wilmington Cab notified city officials in August that its insurance had been canceled and it intended to become self-insured, setting aside $6,500 per cab annually to build up a $2-million reserve fund. Obtaining insurance otherwise would cost $8,500 per cab, the company said.
At Tuesday's meeting, the council approved the rate increase and the company's request for permission to become self-insured.
Wilmington Cab also serves Long Beach, Wilmington, San Pedro, Harbor City, Carson, the Palos Verdes Peninsula, Los Angeles International Airport, Redondo Beach, Gardena, Manhattan Beach, Hermosa Beach, Lomita and Manhattan Beach, and requests for fare hikes are pending in Carson and Long Beach.