New York residents are currently paying the highest auto insurance premiums in the United States, with rates averaging $1,500 more per year than the national average. Over the past three years, these rates have increased by 21%, creating financial challenges for both small business owners and consumers.
Governor Hochul has introduced a series of proposals aimed at reducing these high insurance costs. One measure targets staged accident fraud by allowing prosecutors to pursue criminal charges against those who organize such incidents, not just the drivers involved. Another proposal would limit non-economic damage awards for drivers found to be mostly at fault—defined as over 50% responsible—bringing New York’s policies closer to those in other states.
Additional reforms include capping non-economic damages for drivers engaged in criminal behavior during an accident, such as driving while impaired, committing a felony, or operating without insurance. The Governor also suggests tightening medical standards for what qualifies as a “serious injury,” aiming to reduce lawsuits over minor injuries that contribute to higher litigation expenses.
Insurance companies would be required to offer discounts to policyholders who voluntarily use technology that monitors safe driving habits. They would also need to provide clear notifications and explanations regarding any changes or increases in premium rates.
According to the Governor’s office, "New York’s high insurance premiums are a direct result of outdated and inconsistent laws. The crucial reforms in the Governor’s proposals will not only provide safer roads, but also establish fairer regulations, crack down on the major drivers of auto insurance costs, prevent insurance companies’ excessive profits, and provide relief to families and businesses across the state."
The public is encouraged to support these proposed reforms by contacting their legislators.
