APCIA Applauds Governor Hochul for Enacting Legal System Abuse Reforms to Lower Costs for New Yorkers

WASHINGTON - The American Property Casualty Insurance Association (APCIA) today praised New York Governor Hochul for enacting critical legal system abuse reforms as part of the state budget - measures that will help restore fairness, reduce costs, and improve insurance affordability for New Yorkers.

The budget legislation includes key provisions to tighten the state's no fault "serious injury" threshold, cap non-economic damages for bad actors, and reform comparative negligence laws - long standing priorities for APCIA to address excessive litigation and rising insurance costs.

"Governor Hochul is taking an important step to fix a system that has been driving up costs for New York families for far too long," said Kristina Baldwin, APCIA's department vice president of state government relations. "These reforms will promote fairness in auto accident lawsuits while discouraging abuse that ultimately raises premiums for everyone."

Restoring Balance and Protecting Consumers

The reforms curb costly legal system abuse while preserving full compensation for medical costs and lost wages for those who are truly injured. Specifically, they:

• Ensure only legitimate injuries qualify for non-economic damages by strengthening the serious injury threshold.
• Curb excessive "pain and suffering" awards by capping non-economic damages for bad actors.
• Restore fairness in the system by reforming comparative negligence rules so those primarily responsible cannot shift costs to others.

Together, these changes discourage opportunistic litigation, promote accountability, and support a more stable insurance marketplace.

Addressing the Root Cause of Rising Costs

Legal system abuse - including inflated claims, excessive litigation, and abuse of non-economic damages - continues to drive up auto insurance costs in New York and nationwide. These reforms directly target those pressures by modernizing outdated laws and closing loopholes.

"New Yorkers deserve a system that is fair, predictable, and focused on real injuries - not one that rewards manipulation or gamesmanship," Baldwin added. "Governor Hochul's leadership will help put the system back on track."

A Proven Path Forward

Experience in other states shows that legal system abuse reforms can deliver meaningful benefits for consumers, including greater market stability and downward pressure on insurance costs.

"These commonsense reforms are an important step toward improving affordability and protecting consumers," said Baldwin. "APCIA looks forward to working with the Governor and state leaders to ensure these measures are fully implemented and deliver results for New Yorkers."