State briefing · NYNew York: Lawsuit-Abuse Reform
New York: Lawsuit-Abuse Reform
and Consumer Cost
Hochul's 2026 budget reforms are a start — but staged-crash rings still make New York the country's most exploited insurance market.
Reform progressDocumented fraud & abuse37 PACT reports attributed to New York
Reform progressNew York
Gov. Hochul signed landmark insurance-reform legislation in 2026 targeting staged-crash fraud and runaway litigation.
2026
Hochul-signed insurance reform package addressing staged-crash fraud
76%
New York voters who say lawsuit abuse raises the cost of goods and services
95%
Voters bothered that NY drivers pay ~$1,500 more than the national average
Documented fraud & abuseNew York
New York is the nation's most hospitable environment for organized insurance fraud — scripted crashes, sham clinics, and $50K no-fault payouts.
1,729
Staged auto accidents in NY in 2023 — 2nd-highest in the nation
38,270
Suspected motor-vehicle insurance fraud cases reported in 2023
$4,000/yr
Average NY auto premium — ~$1,500 above the national average
$10,000/yr
Estimated NYC family cost from lawsuit abuse
PACT coverage
Reporting and analysis attributed to New York
News & analysis
24- July 24, 2026Insurance Fraud Is Costing You $300 a Year, and New York Is Fighting BackStaged car crashes aren’t accidents. They’re premeditated schemes designed to defraud insurers and pass the costs on to everyday consumers. We’ve seen these repeatedly in New York from a Suffolk County court ruling exposing coordinated…Read
- July 9, 2026New York's Auto Insurance Reforms Are Now in Effect. Here's What That Means for DriversFor years, New York has held the dubious distinction of having the highest auto insurance rates in the nation. Now, a package of reforms championed by Governor Kathy Hochul has gone into effect, and the state is demanding insurers reflect the savings in their rates.Read
- July 8, 2026Court Documents: When the Eyewitness Becomes the Plaintiff. A Brooklyn Construction Case Reveals the Machinery Behind Lawsuit AbuseA Brooklyn construction lawsuit filed in 2018 offers a revealing window into how the personal injury system can be manipulated through overlapping claimants, shared medical networks, and litigation financing that turns injury claims into…Read
- June 15, 2026Court Documents: A Federal Racketeering Case Just Mapped New York's Personal Injury Fraud MachineA new federal lawsuit filed in June 2026 does something previous court filings have only gestured at: it draws the entire blueprint. Not just the fraud, but the system. Every role, every participant, every financial incentive, laid out in…Read
- April 9, 2026New York RICO Lawsuit Against Brooklyn Attorney Uncovers Another Staged Accident SchemeA 92-page federal RICO lawsuit initiated by FedEx against a personal injury attorney from Brooklyn, along with his network of doctors and medical providers, has revealed what New York reform advocates have long contended: staged accident…Read
- March 17, 2026PACT Polling Summary — Lawsuit Reform & Cost of LivingOver the course of ten polls conducted between February 2025 and February 2026, Protecting American Consumers Together (PACT) has assembled one of the most comprehensive and consistent bodies of public opinion research on lawsuit reform…Read
- February 26, 2026Suffolk County Court Case Puts a Spotlight on Auto Insurance Fraud — and Why Reform Matters NowA recent ruling from New York’s Suffolk County Supreme Court offers one of the clearest examples to date of how organized fraud schemes exploit the Empire State’s auto insurance system — and, in doing so, raise premiums for law-abiding…Read
- February 12, 2026Hochul Targets “Runaway Litigation” and Fraud in New York’s Personal-Injury SystemIn Albany, Governor Kathy Hochul issued one of her most pointed criticisms of New York’s personal injury and auto fraud system, characterizing it not as individual wrongdoing, but as a systematic network of criminal participants inflating…Read
- February 3, 2026The Urgent Need To End Lawsuit Abuse And Fraud In New YorkIn 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…Read
- January 13, 2026Governor Hochul Proposes Much-Needed Crackdown On Lawsuit AbuseIn her State of the State address today, Governor Kathy Hochul took aim at one of the biggest—and most overlooked—drivers of New York’s high cost of living: auto insurance.Read
- November 17, 2025NY’s Affordability Crisis: NY Post Urges Hochul to Reject Lawsuit Friendly Bills That Would Raise Costs for ConsumersThe New York Post Editorial Board is urging Governor Kathy Hochul to veto a slew of bills that would supercharge New York’s already out-of-control litigation system and drive everyday costs even higher for families and businesses.Read
- October 21, 2025Court Documents: Insurer Alleges NYC Injury Lawyers, Doctors, and Funders Built a Fraud Scheme, Walking Clients Into a “Bear Trap”In a remarkable 170-page federal complaint submitted on October 20, 2025, Merchants Mutual Insurance Company has accused one of New York’s most prominent plaintiff firms, along with a network of doctors and litigation-funding…Read
Press releases
13- June 5, 2026ICYMI: New York’s Landmark Insurance Reforms Earn Praise in Buffalo News, The Center SquareAlso today, PACT Board Member and Kahana Feld Partner Tim Capowski published an op-ed in The Buffalo News, examining how New York built itself into the nation’s most hospitable environment for insurance fraud — and why Hochul’s decision to…Read
- May 27, 2026PACT Welcomes an Agreement in New York on Lawsuit Abuse Reform“Today’s budget signing marks an important step toward bringing down insurance costs for New Yorkers,” said Lauren Zelt, Executive Director of PACT. “States that have taken action to curb lawsuit abuse and combat fraud have seen stronger…Read
- May 7, 2026PACT Applauds Progress in New York on Lawsuit Abuse ReformAgreement Represents Positive Step Toward Lower Costs and Greater Affordability for New YorkersRead
- April 14, 2026New TV Ad: Billboard Lawyers Lining Pockets in Albany to Keep Prices HighThis new ad, Get Their Way, points to reporting by The New York Times about political contributions from billboard attorneys to legislators in Albany. From the reporting:Read
- April 13, 2026ICYMI: WSJ Editorial Board Backs Hochul's Fight Against Trial Lawyers on Auto Insurance ReformHere’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.Read
- April 9, 2026PACT Releases Consumer Talk Episode Five: Behind Hotbed AddressesThe latest episode, titled “Behind Hotbed Addresses,” exposes a troubling pattern in New York City and at the center of lawsuit abuse: buildings where an unusually high number of individuals living under the same roof repeatedly file…Read
- March 12, 2026New TV Ad Campaign Contrasts New York and Florida on Lawsuit AbusePACT’s new television ad is a part of a seven-figure television and digital campaign that ties billboard lawyers to New York’s affordability crisis. Their tactics fuel rising prices across the state, leaving everyday families to shoulder…Read
- February 27, 2026New Poll in Three Key New York Congressional Swing Districts Shows Overwhelming Support for Lawsuit Abuse ReformVoters Across Party Lines Say Cost of Living Is Rising — Strong Majorities Back Reforms to Address Lawsuit Costs and Lower PremiumsRead
- February 5, 2026New TV Ad Campaign Ties Billboard Lawyers to New York’s Affordability CrisisPACT’s new television ad is a part of a seven-figure television and digital campaign that ties billboard lawyers to New York’s affordability crisis, fueled by shady tactics such as staged accidents, unnecessary medical treatments and…Read
- February 5, 2026New Billboard Campaign Ties New York’s Billboard Lawyers to Affordability CrisisThe two billboards, now live in Albany along I-787 North at Exit 3 near the Empire State Plaza, will run throughout February and March, delivering high-impact visibility to New York drivers.Read
- January 23, 2026ICYMI: Newsday Op-Ed: How Lawsuit Abuse Made New York Unaffordable> New York has the highest auto insurance rates in the country. Full auto insurance coverage costs more than $4,000 annually, compared with $2,679 nationwide, according to Bankrate. The disparity for minimum coverage is even starker — New…Read
- January 13, 2026PACT APPLAUDS GOV. HOCHUL EFFORTS ON LAWSUIT ABUSENew York Governor Outlines Multi-Pronged Approach to Lowering Costs, Protecting Consumers in the Empire StateRead
Background
Read the explainers behind PACT's reform positions
Consumers at Risk
How lawsuit abuse, third-party litigation funding, and legal-advertising excess raise the cost of everyday goods.
OpenState Reform Map
National scorecard of tort-reform progress and documented fraud hot spots across all 50 states.
OpenThe New York Lawsuit System
Deep dive on staged accidents, medical mills, and no-fault fraud — the anatomy of the country's most exploited insurance market.
OpenPACT Research
Original polling, cost studies, and litigation-finance analyses underpinning PACT's reform positions.
OpenPolling Results
Voter attitudes on lawsuit abuse, tort reform, and legal-system transparency across battleground states.
OpenLatest News & Analysis
Reverse-chronological feed of PACT reporting on legal-system reform, fraud enforcement, and insurance-cost impact.
OpenOther reform-progress states