Washington, D.C. – Yesterday, the Editorial Board of The Wall Street Journal published an editorial praising Gov. Kathy Hochul for taking on the trial lawyer lobby in Albany, calling her push for auto insurance reform a rare act of political courage.

Read the full piece here.

Key Excerpts:

Here’s something we never thought we’d see: A Democratic Governor of New York taking on the trial lawyers who control Albany. But that’s what Gov. Kathy Hochul is doing, and we hope she’s hired a food-taster.

Unlike most states, New York lets individuals claim damages for injuries and vehicle damage from their insurer no matter who’s to blame for an accident. If you crash your car while driving drunk, you can claim damages from your insurer. This system has invited fraud with injuries faked or exaggerated.

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Unscrupulous doctors work with trial lawyers to recruit clients and bill insurers for expensive and unnecessary treatments.

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This enterprise recruits claimants to stage or exaggerate accidents, fabricate injuries, and uses falsified medical documentation to inflate claims. Defendants direct claimants to undergo unnecessary and invasive medical procedures, often funded by predatory litigation loans, all to create the illusion of catastrophic injuries and drive-up settlement values.

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Insurance fraud raises premiums for all New Yorkers, but especially ride-share and taxi drivers. Uber says that about 27% of a rider’s fare on average goes to mandatory insurance costs. New Yorkers pay about $1,500 more a year in auto premiums on average than the rest of the country. 

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While not seismic, these reforms could curb fraud and premiums. Yet legislative leaders are refusing even to negotiate, while trial lawyers run ads attacking Ms. Hochul for helping Big Insurance Companies.

The Wall Street Journal Editorial Board underscores the urgency of New York’s auto insurance crisis — and the political courage it takes to confront the lawsuit abuse and fraud that have made New York drivers the most overcharged in the nation.