Gov. Kathy Hochul is promoting a set of proposals aimed at lowering auto insurance costs and reducing fraud in New York.
Hochul rallied with advocates and officials to highlight the plan, which targets staged accidents, legal loopholes and rising premiums.
State officials said New Yorkers pay more than $4,000 annually on average for car insurance, about $1,500 above the national average.
Data shows staged crashes and fraud contribute to higher costs, with 1,729 staged incidents reported in 2023 and more than 43,000 suspected fraud cases reported in 2025.
“Hardworking New Yorkers should not have to face the skyrocketing costs of auto insurance rates because of bad actors,” Hochul said.
The proposals include creating new legal penalties for staged crashes, limiting payouts in certain cases and revising standards for injury claims.
Officials also said the plan would prevent insurers from keeping excess profits and require justification for rate increases.
“There’s families that are hurting out there,” Hochul said. “It’s time to stop the insanity.”
The state estimates the changes could also save the Metropolitan Transportation Authority about $48 million annually.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected].