New Yorkers are saddled with the highest auto insurance rates in the country, paying $1,500 more a year than the national average. Auto insurance rates have surged 21% in the last three years, placing an unsustainable financial burden on small business owners and consumers. As part of Governor Hochul’s agenda, she has proposed common sense measures to lower exorbitant insurance premiums.

Included is a pledge to combat staged accident fraud, allowing prosecutors to seek criminal penalties against organizers of staged accidents, not just the drivers. She will also limit awards for at-fault drivers, preventing drivers who are “mostly” at fault (over 50%) from collecting non-economic damages, aligning New York more closely with other states. The Governor also proposes a cap on non-economic damages (such as pain and suffering) for drivers engaging in criminal behavior at the time of an accident (driving while impaired, committing a felony, or driving without insurance), as well as stricter medical standards for “serious injury” to prevent lawsuits over minor injuries, which significantly drives up litigation costs. Additionally, insurance companies would have to offer discounts to drivers who voluntarily use technology to monitor safe driving habits, and notify policyholders of rate changes and explanations for premium increases.

New York’s high insurance premiums are a direct result of outdated and inconsistent laws.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.

Support the auto insurance reform proposals by sending a message to your lawmakers: Contact your legislator today!