New York Governor Outlines Multi-Pronged Approach to Lowering Costs, Protecting Consumers in the Empire State

Washington, D.C. –  Protecting American Consumers Together (PACT), a national organization dedicated to standing up for plaintiffs, victims, and consumers to ensure they can access a fair and transparent legal process, today released the following statement regarding New York Governor Kathy Hochul’s efforts to crack down on lawsuit abuse:

“We applaud Governor Hochul’s efforts to crack down on fraudulent lawsuits in the Empire State, and especially in the hotbed area of New York City, where the average family pays over $10,000 annually due to lawsuit abuse,” said PACT Executive Director Lauren Zelt. “Coordination between the State Police, financial regulators, DMV officials and prosecutors — paired with common-sense legal reforms — will finally restore accountability, rein in lawsuit abuse, and deliver real relief to New York families. This announcement is a big step in the right direction.”

During her address, Governor Hochul said “New Yorkers pay the highest auto insurance rates in the nation, averaging $4,000 a year, $1,500 more than the national average…Because of rampant fraud and runaway litigation costs are jacking up the prices…We’re putting the brakes on fraud, a system that rewards illegal behavior. And if you are… committing a felony at the time of the crash, you should not get a payday. This is about finally standing up for millions of New York drivers who deserve a break.”

More details on Governor Hochul’s plan can be read here.

Governor Hochul highlighted insurance fraud and abuse as major contributors to rising rates. Staged car crashes are the most visible example. According to Newsday, New York recorded 1,729 staged auto accidents in 2023, the second-highest total in the nation, and insurers reported 38,270 suspected cases of motor-vehicle insurance fraud that year. Industry estimates suggest fraud adds up to $300 a year to the average driver’s insurance bill.

PACT has drawn attention to the lawsuit abuse crisis in New York, including an episode of the Consumer Talk video series and blog posts highlighting various fraud schemes across the state. Last year, PACT launched a six-figure campaign in New York calling on lawmakers to address lawsuit abuse. 

To learn more about PACT’s efforts in New York or to schedule an interview, please contact Executive Director Lauren Zelt at laurenzelt@protectingamericanconsumers.org.