Today, Governor Kathy Hochul held a press conference to discuss rising auto insurance premiums in the state being driven by criminal fraud and runaway litigation. The full video is linked here.

In remarks, Hochul said rising premiums are “because of rampant fraud and runaway litigation costs,” and made clear she is prepared to confront powerful interests standing in the way of reform.

Hochul: “I don’t mind taking on entrenched interests.”…”You stand in our way of fighting fraud and excessive payouts. You’ve got to come through us because we are standing up on behalf of every New Yorker who is looking for relief.”

State officials underscored that the problem goes far beyond paperwork abuse.

Steven James, Superintendent of State Police: “Auto insurance fraud is not a paperwork crime. It is organized, it is deliberate, and it often intersects with other criminal activity… Insurance fraud is not a victimless crime. It drives up insurance premiums… costing the average New Yorker hundreds of more dollars per year.” 

The cost impact is immediate and severe. New York now has the highest auto insurance rates in the nation, with full coverage costing more than $4,000 a year, far above the national average, when the money should be going back in the pocket of consumers. 

“Today New Yorkers are paying some of the highest auto rates in the nation,” said Gil Cygler, Vice President of the Brooklyn Chamber of Commerce. “That’s money that should be in the pockets of our consumers and small businesses, not going into the hands of people committing abuse, fraud, and exploiting loopholes.”

As the affordability debate moves forward today, Hochul’s message is clear: tackling fraud and excessive litigation is essential to delivering real affordability relief for New Yorkers.