In Albany today, Governor Kathy Hochul took direct aim at the rampant fraud and runaway litigation that has turned New York into a playground for organized crime rings and bad actors. For the average New Yorker, the unprecedented fraud is no longer a hidden cost, it’s an affordability crisis.

Gov. Hochul said, “These common-sense proposals will not only crack down on fraudulent claims that drive up the cost of car insurance, they’ll put money back into the pockets of hardworking New Yorkers, allowing them a sense of relief.” 

State officials underscored that these aren’t victimless crimes. Each staged accident involves organized, deliberate criminal activity. Staged crashes are sophisticated, dangerous maneuvers that put innocent drivers at risk on our highways. New York now ranks second-highest in the nation for staged accidents, with 1,729 incidents in 2023 alone. Suspected motor vehicle fraud reports have increased from 24,238 in 2020 to 43,811 in 2023, a staggering 80 percent increase.

The financial impact on hardworking families is staggering. New York now leads the nation with some of the highest costs for vehicle insurance, averaging over $4,000 annually. That is $1,500 above the national average.

For too long, the system perpetuated by billboard attorneys has prioritized payouts for bad actors over the protection of honest consumers. The push for reform signals a shift toward accountability.