Governor Hochul Rallies with Leaders and Advocates to Highlight Auto Insurance Reform Proposals as Support Grows

Governor Kathy Hochul today rallied with leaders and advocates to highlight her proposals to bring down auto insurance costs and tackle fraudulent claims across New York State as support continues to grow. The Governor is taking common-sense steps to battle fraud, limit damages paid out to bad actors and ensure that consumers, not insurance companies, are prioritized. These proposals build on the Governor's ongoing efforts to make the state more affordable and put money back into the pockets of hardworking New Yorkers.

"Hardworking New Yorkers should not have to face the skyrocketing costs of auto insurance rates because of bad actors," Governor Hochul said. "Our motorists, first responders and public transit riders are all affected by the fraudulent claims that lead to jackpot settlements and take money away from resources our state needs. This system is flawed, and I'm committed to working with the Legislature to take on this fight and make our state more affordable - that's what New York deserves."

New Yorkers pay some of the highest car insurance rates in the nation - totaling just more than $4,000 annually on average, nearly $1,500 above the national average. Car insurance rates are driven up by a combination of fraud, litigation, legal loopholes, and enforcement gaps, with staged crashes and associated insurance fraud inflating everyone's premiums by as much as $300 per year on average, according to some estimates.

Increasingly sophisticated actors stage elaborate accidents, designed to allow for "jackpot" payouts from insurance companies or jury awards, and these scams are becoming more prevalent. In 2023, there were 1,729 staged crashes in New York State, which ranks second highest in the nation for incidents of staged fraud. In total, insurance carriers reported 43,811 incidents of suspected motor vehicle insurance fraud to the New York State Department of Financial Services (DFS) Insurance Frauds Bureau in 2025. This is up from 24,238 incidents of suspected motor vehicle insurance fraud from 2020, an 80 percent increase in five years.

Hardworking New Yorkers should not have to face the skyrocketing costs of auto insurance rates because of bad actors.

To combat these organized criminal efforts, Governor Hochul is taking a whole-of-government approach to cracking down on auto insurance fraud, including:

• Taking on fraud in the system by creating new legal liability for criminals orchestrating staged accidents and supporting police and prosecutors in building cases.
• Preventing people committing crimes or driving uninsured from landing jackpot payments beyond routine reimbursement for medical care or lost wages.
• Ensuring those found at fault for an accident can't sue their victims for compensation.
• Better defining what actually constitutes a 'serious injury' so that damages for pain and suffering or emotional distress are reserved for those able to objectively demonstrate that they have suffered a serious injury.
• Ensuring those minimally responsible for an accident aren't the ones left unfairly holding the entire bag if delinquent parties fail to pay up.
• Preventing insurance companies from pocketing savings achieved by reforms by requiring excess profits above a reasonable threshold get sent back to policyholders and that insurers justify every rate increase directly to consumers and state regulators.
• Requiring insurers to offer mandatory technology discounts that incentivize safe driving.

Last week, Governor Hochul and the MTA announced a new MTA analysis showing that the Governor's proposal to lower the cost of auto insurance would deliver $48 million in annual recurring savings for the authority. The Governor's proposal will save money for the MTA for the same reason it will save money for millions of everyday drivers - by changing laws that force too many New Yorkers to pay through the roof for crashes that aren't their fault. Specifically, her plan will prevent the MTA from being forced to pay jackpot settlements for crashes in which their buses were not primarily to blame.

Contact the Governor's Press Office