Full story in CBS 6 Albany
By Felix Day
With New Yorkers paying some of the highest car insurance rates in the country, Gov. Hochul is pushing a package of reforms she says would lower costs for drivers while cracking down on staged crashes and other fraudulent claims.
Gov. Hochul rallied with leaders and advocates to highlight proposals aimed at bringing down auto insurance costs and tackling fraudulent claims statewide. The plan is framed as a way to “battle fraud, limit damages paid out to bad actors and ensure that consumers, not insurance companies, are prioritized,” while building on efforts to make New York more affordable.
Gov. Hochul said,
Hardworking New Yorkers should not have to face the skyrocketing costs of auto insurance rates because of bad actors. Our motorists, first responders and public transit riders are all affected by the fraudulent claims that lead to jackpot settlements and take money away from resources our state needs. This system is flawed, and I’m committed to working with the Legislature to take on this fight and make our state more affordable – that’s what New York deserves.
The push comes as New Yorkers pay just more than $4,000 annually on average for car insurance, nearly $1,500 above the national average. Rates are driven up by a combination of fraud, litigation, legal loopholes and enforcement gaps, with staged crashes and associated insurance fraud inflating premiums by as much as $300 per year on average, according to some estimates.
State officials say staged-crash schemes have become increasingly sophisticated, with elaborate accidents designed to trigger “jackpot” payouts from insurance companies or jury awards. In 2023, there were 1,729 staged crashes in New York state, ranking second highest in the nation for incidents of staged fraud. Insurance carriers reported 43,811 incidents of suspected motor vehicle insurance fraud to the state Department of Financial Services’ Insurance Frauds Bureau in 2025, up from 24,238 in 2020 – an 80% increase in five years.
According to the release, Hochul’s proposals include creating new legal liability for criminals who orchestrate staged accidents and supporting police and prosecutors in building cases. The plan also seeks to prevent people committing crimes or driving uninsured from receiving large payments beyond routine reimbursement for medical care or lost wages, and would bar those found at fault for an accident from suing their victims for compensation.
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Last week, Hochul and the Metropolitan Transportation Authority pointed to an MTA analysis that found the governor’s proposal would deliver $48 million in annual recurring savings for the authority. The savings, officials said, would come from changing laws that force too many New Yorkers to pay high costs for crashes that are not their fault, including preventing the MTA from being forced to pay large settlements for crashes in which its buses were not primarily to blame.