Governor Hochul Joins New York Farm Bureau and Farmers to Highlight Her FY27 Budget Proposals

Governor Kathy Hochul today joined the New York Farm Bureau, Northeast Dairy Producers and farmers from Upstate to highlight her proposals to bring down auto insurance rates and tackle fraudulent claims across New York State. The Governor's common-sense reforms will battle fraud, limit damages paid out to bad actors and ensure that drivers, not insurance companies, are prioritized. Additionally, Governor Hochul proposed $30 million in her FY27 Budget for direct "tariff relief" for New York farmers to offset increased costs for equipment, fertilizer and supplies caused by federal tariffs. These measures build on Governor Hochul's ongoing efforts to make the state more affordable and put money back into the pockets of hardworking New Yorkers.

"Farmers across New York State feel the impacts of high car insurance rates and skyrocketing prices - from direct costs of transport goods to shipping and importing," Governor Hochul said. "With car insurance rates steadily increasing, New Yorkers are paying some of the highest rates in the country. It is time that we drive down these costs and provide our farmers across the state with relief."

New Yorkers pay some of the highest car insurance rates in the nation - totaling 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.

Cracking Down on Fraud To Lower Rates for Everyday New Yorkers

Increasingly sophisticated actors stage elaborate accidents, designed to result in "jackpot" payouts from insurance companies or jury awards, and these scams are becoming more prevalent. In 2023, there were 1,729 staged crashes in New York State, which ranks second highest in the nation for incidents of staged fraud. In total, insurance carriers reported 43,811 incidents of suspected motor vehicle insurance fraud to the New York State Department of Financial Services (DFS) Insurance Frauds Bureau in 2025. This represents an 80 percent increase in just five years.

To combat these organized criminal efforts, Governor Hochul is taking a whole-of-government approach to cracking down on auto insurance fraud, including:

• Reinvigorating the State's Motor Vehicle Theft and Insurance Fraud Prevention Board, empowering it to better support the ability to investigate and prosecute insurance fraud across the state
• Legislation to ensure prosecutors can seek criminal penalties against any individual responsible for organizing a staged accident, not just the particular individual behind the wheel
• Partnering with District Attorneys across New York to help build cases that put an end to the organized fraud that's robbing New Yorkers via elevated insurance rates
• Strengthening efforts to take on medical providers who participate in fraud by signing off on phony medical diagnoses that result in enormous payouts
• Tasking DFS, DMV, New York State Police (NYSP) and the Division of Criminal Justice Services (DCJS) with a more proactive and coordinated approach to enforcement, including dedicated resources and staff at DFS and NYSP focused on auto insurance and ensuring coordination with law enforcement.

Farmers across New York State feel the impacts of high car insurance rates and skyrocketing prices - from direct costs of transport goods to shipping and importing.

Strengthening Insurer Anti-Fraud Programs

Current law handcuffs insurers' ability to protect their law-abiding customers against fraud and abuse by capping the time they have to identify and report instances of fraud to just 30 days. To ensure fraud is being identified and punished, Governor Hochul will increase the timeframe insurers have to report fraud and reduce barriers to alleging fraud in court, giving insurers more time to investigate claims and avoid paying fraudulent ones. Legislation will balance increased flexibility to crack down on fraud with the need to preserve crucial consumer protections.

Limiting Damages for Individuals Engaging in Unlawful Behavior at the Time of an Accident

When drivers are engaging in unlawful behavior at the time of an incident, they shouldn't be able to win sizable insurance payouts. However, current law permits individuals committing crimes, including impaired driving, to receive generous payouts for non-economic damages, such as pain and suffering and emotional distress, which are paid from the premiums contributed by law-abiding drivers. Governor Hochul will cap the payout on these types of non-economic damages for drivers using or operating a car while engaging in criminal behavior at the time of the incident, including uninsured motorists, individuals convicted of driving while impaired at the time of the incident, and individuals committing a felony or fleeing one at the time of the incident.

Limiting Damages for Individuals Who Are "Mostly" At Fault in Causing an Accident

New York is in a minority of states that allow drivers that are deemed "mostly" at fault in an accident to still collect extensive damages, including non-economic damages. This means that in New York, even the driver deemed mostly at fault for an accident can walk away with a sizable payout for that accident. Most states have common-sense rules which only permit recovery of damages if a plaintiff is not primarily at fault for the accident. The Governor is seeking changes to the state's laws that will limit the damages a driver can obtain if they are mostly at fault for an accident, introducing a measure of accountability for who is compensated by insurance after an incident.

Tightening the Serious Injury Threshold

New York's no-fault insurance law allows for individuals seriously injured in an auto accident to make claims for compensation that stretch beyond reimbursement for the medical expenses or lost wages associated with an injury. This additional compensation is intended to offer support for non-economic damages, like the pain and suffering of victims with serious injuries. New York's legal definition of serious injury is currently vague and applied inconsistently.

Providing Relief for Farmers

Additionally, as part of the FY27 Budget, Governor Hochul proposed $30 million in direct "tariff relief" for New York farmers to offset increased costs for equipment, fertilizer and supplies caused by federal tariffs. The program targets relief for specialty crop growers, livestock producers and dairy farmers, aiming to mitigate significant financial losses.

The Governor also proposed $15 million in grants to dairy farmers to upgrade technology, aimed at improving efficiency and a five-year extension of refundable investment tax credits for farm investments.

New York Farm Bureau Vice President Kim Skellie said, "New York farmers are facing real pressure right now - from rising energy costs to some of the highest auto insurance premiums in the nation, to continued uncertainty resulting from fluctuating tariffs and skyrocketing fertilizer prices. That said, we appreciate Governor Hochul's continued support, including her commitment to CLCPA changes, meaningful auto insurance reform, and targeted funding to help farms weather trade and input cost challenges. These initiatives will help us keep producing affordable local food."

Northeast Dairy Producers Association (NEDPA) Executive Director Allyson Jones-Brimmer said, "Auto insurance rates have increased more than 60 percent year-over-year for some farms - a change to the bottom line that's simply not sustainable if it were to continue. We applaud the Governor for addressing rising costs and taking action to tackle affordability, especially for our family dairy farmers who cannot pass these increased costs on. We look forward to continuing to work together to protect local food sources for New York families, support the next generation of farmers, and secure the state's place as a U.S. dairy powerhouse."

Contact the Governor's Press Office