Governor Hochul Joins Volunteer Firefighters to Highlight Her Auto Insurance Proposals

Governor Kathy Hochul today joined volunteer firefighters to highlight her proposals to bring down costs of 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. 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.

"For most New Yorkers, having a car isn't a luxury - it's a necessity to get to and from work, school and run daily errands," Governor Hochul said. "New York has some of the highest auto insurance rates in the country, and that is something I am not proud of. It is time we crack down on the bad actors and drive down costs for New Yorkers across the state."

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

• • Taking action when New York drivers illegally register their vehicles in other states, which artificially decreases their coverage and raises costs for law-abiding New York drivers

"It is time we crack down on the bad actors and drive down costs for New Yorkers across the state."

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, applied inconsistently, and can include temporary injuries that only sideline an individual for a short time following an accident.

Governor Hochul will reform the serious injury threshold by proposing objective and fair medical standards for what qualifies as a serious injury. This reform will avoid unnecessary and expensive litigation, and help stop individuals from exploiting the system to win payouts that are not aligned with the severity of their injuries and push everyone else's rates up.

Firefighters Association of the State of New York President Eugene J. Perry Jr. said, "As firefighters and first responders, we see the real world consequences of dangerous behavior on our roads. Staged auto accidents don't just raise insurance costs, they put lives at risk, including the lives of our emergency responders and innocent motorists. This is why FASNY strongly supports Governor Hochul's proposed auto insurance reforms. They take direct aim at staged crash rings and fraudulent claims, which happens far too often throughout the state."

New York State County Fire Coordinators Association President Bill Streicher said, "Auto insurance is a major burden for volunteers who rely on their personal vehicles to respond to calls and training. When premiums rise, it's a barrier to service. Every added cost discourages participation and puts pressure on our already strained volunteer system. Governor Hochul's common-sense plan helps ease this unfair burden. By addressing the issues, the Governor is creating a more balanced system that supports the volunteers who keep our communities safe."

Long Island Firefighters Legislative Committee Chair Bill Theis said, "On Long Island, volunteer firefighters see every day how rising costs are hitting working families, and auto insurance is no exception. Fraud and abuse drive up premiums for everyone, and that's money coming straight out of our neighbors' pockets. Governor Hochul's proposal takes a common-sense approach to cracking down on bad actors, restoring fairness and helping bring down costs for drivers. We're proud to support efforts that protect taxpayers and strengthen our communities."

Contact the Governor's Press Office