Governor Hochul Secures Reforms to Lower Auto Insurance Premiums for New Yorkers

www.Governor.ny.gov, May 27, 2026

Governor’s Initiative Will Battle Fraud, Limit Damages Paid Out to Bad Actors and Ensure Consumers, Not Insurance Companies, Are Prioritized 

New Law Will Cap Excess Insurance Profits and Return Savings to Consumers 

Reforms Build on Governor’s Ongoing Efforts to Make New York State More Affordable and Put Money Back into Pockets of Hardworking New Yorkers

Governor Kathy Hochul today announced reforms to bring down costs of auto insurance rates and tackle fraudulent claims across New York State as part of her FY27 Enacted Budget. The Governor secured common-sense steps to battle fraud, limit damages paid out to bad actors and ensure that consumers, not insurance companies, are prioritized. These reforms build on Governor Hochul’s ongoing efforts to make the state more affordable and put money back into the pockets of hardworking New Yorkers.

“Outdated laws, special interest loopholes and jackpot insurance payouts to bad actors have long forced New Yorkers to pay some of the highest car insurance rates in the nation,” Governor Hochul said. “These hardfought reforms are a win for every New Yorker who depends on a car to go to work or drop their kids at school. But it’s bigger than that – I’ve heard from farmers who say these reforms will lower the cost of getting their goods to market and from construction supply companies who say this will lower the cost of building. This is how we are delivering on the promise to tackle the affordability crisis head on.”

New Yorkers’ insurance rates total an average of slightly more than $4,000 annually, nearly $1,500 above the national average. Car insurance rates are driven up by a combination of fraud, litigation, legal loopholes and enforcement gaps. Staged crashes and associated insurance fraud inflate premiums up to $300 a year, according to some estimates. New York’s broken insurance system is not just hurting those who rely on a car to get around, but local businesses that rely on trucking to make ends meet. Continue article