ALBANY- A new regulation announced from the office of New York Governor Kathy Hochul aims to lower auto insurance premiums for state residents.
Through the state’s Department of Financial Services, this proposed regulation intends to amend the process for filing private passenger auto insurance rates, implementing reforms enacted in the Fiscal Year 2027 Budget to help bring down the cost of auto insurance in New York State.
“This regulation delivers on our commitment to strengthen consumer protections and give policyholders greater confidence that insurance companies are being held to clear standards,” the Governor said.
“As we continue to work to lower costs, combat fraud and make New York State more affordable, we are helping families and businesses make informed decisions and ensuring insurers remain accountable to their customers.”
According to authorities, the regulation implements new regulatory safeguards and transparency measures for drivers in New York.
Currently, insurers may implement no more than two overall average private passenger auto rate increases without the Department’s prior approval if the cumulative effects of the rate increases are within 5%, Governor Hochul’s office said.
The proposed regulation requires insurers to seek express prior approval from DFS before any upward rate changes.
Additionally, the regulation ensures insurers notify policyholders about rate decreases taken without prior approval resulting from Fiscal Year 2027 budget reforms and explain why the changes are happening.
New York State Capitol image.
