New York Hopes To Slash Car Insurance By 10 Percent

Governor Kathy Hochul is signing legislation that reforms car insurance laws that she says will result in New Yorkers' car insurance rates being lowered.

Gov. Hochul Signs Auto Insurance Laws

Hochul says the reforms to bring down costs of auto insurance rates and tackle fraudulent claims across New York are part of her 2027 budget, which is still waiting to be passed.

The budget was due April 1. Lawmakers believe the budget could be passed by the end of this week.

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Hochul says she "common-sense steps to battle fraud, limit damages paid out to bad actors and ensure that consumers, not insurance companies, are prioritized."

Car Insurance Could Be Lowered By 10 Percent

According to Hochul's office, New Yorkers’ insurance rates, on average, cost more tan $4,000 per year. That's nearly $1,500 above the national average.

“Outdated laws, special interest loopholes and jackpot insurance payouts to bad actors have long forced New Yorkers to pay some of the highest car insurance rates in the nation,” Hochul stated. “These hardfought reforms are a win for every New Yorker who depends on a car to go to work or drop their kids at school.

The Citizens Budget Commission says once reforms are enacted, they should bring down New York car insurance rates 10 percent on average.

How New York State Intends To Lower Car Insurance Rates

No More Jackpots for Criminals

New York is finally putting a cap on payouts for people who are actively breaking the law when a crash happens. This stops uninsured motorists, drunk drivers, and fleeing felons from walking away with a jackpot payday at the expense of regular, hardworking drivers.

Tightening the Rules on 'Serious Injuries'

The state is tightening up the legal definition of what actually qualifies as a "serious injury." From now on, big money for pain and suffering or emotional distress will be strictly saved for people who can objectively prove they were seriously hurt.

If You Caused the Wreck, You Don't Get the Check

This new rule ensures that if you are the one mostly at fault for causing a crash, you can't turn around and sue your victims for insane amounts of cash. This common-sense shift finally puts New York in line with most other states.

Clamping Down on Insurance Company Profits

Albany is putting consumers first by putting a strict legal ceiling on excess insurance company profits and forcing them to return those savings to you. On top of that, insurance companies can no longer hike your rates without getting express approval from the Department of Financial Services.

Fair Rates for Local Drivers

Your car insurance rates shouldn't skyrocket just because of who you are or where you live. This new protection bans insurance companies from setting your premiums based on extra personal factors like whether you own a home, what you do for a living, your education level, or your zip code.

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