Full story in the Times Union
By Matthew W. Daus
Hochul’s proposals would restore integrity to the insurance system by targeting the reasons for our sky-high premiums.
For years, New Yorkers have lived with some of the highest auto insurance premiums in the country. Those premiums are driven not by safer roads or better coverage but by outdated laws, systemic fraud and a legal framework that rewards abuse while penalizing honest drivers.
Gov. Kathy Hochul’s new plan to tackle skyrocketing auto insurance costs deserves support not only because it promises relief for drivers, but because it signals a long-overdue reset of a broken system.
Today, the average New Yorker pays roughly $336 a month for car insurance, totaling just over $4,000 a year — nearly $1,500 more than the national average. Downstate costs are often even higher. But even in western New York and the Capital Region, drivers pay significantly more than their counterparts elsewhere in the country for the same coverage.
Every staged crash, exaggerated injury and fraudulent legal claim quietly drives up premiums for law-abiding drivers. Industry estimates suggest that fraud alone inflates insurance bills by as much as $300 per driver each year, siphoning money from household budgets to subsidize criminal behavior.
The problem is growing: In 2023, insurers reported more than 38,000 suspected auto insurance fraud cases to New York regulators, the highest level on record. That included over 1,700 deliberately staged crashes, placing New York near the top nationally. These organized schemes thrive in gaps created by outdated laws and weak enforcement.
Meanwhile, families and small businesses have absorbed annual premium hikes, including a steep 13.5% increase in 2025 alone. These costs ripple throughout the economy, raising prices for goods and services, squeezing vehicle-dependent businesses and making it harder for working New Yorkers to get by in an already-unforgiving affordability crisis.
What makes the governor’s plan so significant is that it takes direct aim at the cost drivers behind high premiums. It would strengthen anti-fraud enforcement, crack down on staged accidents and exaggerated injury claims, modernize liability rules that fuel excessive litigation and expand the use of technology and data to reward safe driving better.
This is not about denying legitimate claims. It is about restoring integrity to a system that has been stretched beyond recognition.
Equally important are proposed updates to outdated liability standards that have fueled excessive litigation and inflated payouts. New York’s current framework often encourages lawsuits even when the person suing is primarily at fault in a crash. Sensible reforms that better align liability with fault can restore balance while continuing to protect genuinely injured New Yorkers.
Another forward-looking aspect of the governor’s plan is its embrace of technology and data-driven insurance. Requiring insurers to offer discounts to drivers who opt into telematics programs will reward safe driving behavior. Safer drivers should pay less, and technology finally allows that principle to be applied in a meaningful way.
For taxi and for-hire vehicle drivers — many of whom are independent contractors responsible for their own insurance — these reforms could be transformative. However, it remains unclear which of the governor’s proposed reforms would apply to the commercial auto insurance policies they use.Insurance is among their largest expenses. Lower premiums mean greater financial stability for drivers and, ultimately, more affordable transportation for passengers.
These reforms will face resistance from entrenched interests, but New Yorkers cannot afford the status quo. Smart auto insurance reforms can restore integrity, accountability and common sense to a system that touches nearly every household in the state. If enacted, this could be one of the most consequential consumer affordability reforms New York has seen in years, and one that is long overdue.
Matthew W. Daus is the president of the International Association of Transportation Regulators and a former head of the New York City Taxi and Limousine Commission.