ALBANY — Gov. Kathy Hochul on Tuesday unveiled a broad package of proposals aimed at lowering auto insurance costs in New York by targeting fraud, tightening legal standards and limiting certain damage awards.
Hochul said New Yorkers pay some of the highest car insurance premiums in the country — averaging just over $4,000 annually, nearly $1,500 above the national average — and blamed rising costs on staged crashes, insurance fraud, litigation and legal loopholes. In 2023, there were 1,729 staged crashes reported statewide, and insurers reported 43,811 suspected incidents of motor vehicle insurance fraud in 2025, an 80% increase from 2020.
The governor’s plan would reinvigorate the state’s Motor Vehicle Theft and Insurance Fraud Prevention Board and expand prosecutors’ authority to pursue charges against individuals who organize staged crashes, not just drivers involved. The state would also work with district attorneys to build fraud cases, strengthen enforcement against medical providers who participate in fraudulent claims, and crack down on drivers who illegally register vehicles out of state to lower premiums.
Hochul also proposed changes to civil liability laws, including limiting non-economic damages for drivers engaged in criminal conduct at the time of a crash, such as impaired driving or fleeing a felony. She is seeking to limit damage awards for drivers found mostly at fault in accidents and to reform the state’s “serious injury” threshold by setting clearer medical standards to reduce litigation.
Additional proposals include modifying joint and several liability rules so defendants less than 50% at fault would only be responsible for their share of damages, extending the time insurers have to investigate and report suspected fraud, and increasing transparency by requiring insurers to explain rate hikes to policyholders. The governor also wants insurers to offer discounts to drivers who voluntarily participate in programs designed to reduce unsafe driving and fraud.
Hochul said if the reforms reduce insurer costs, the state Department of Financial Services would reexamine the Excess Profit Law to ensure savings are returned to consumers. Lawmakers and local leaders from Long Island joined the governor in backing the proposals, citing the strain high insurance costs place on families and businesses.
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