Car insurance premiums are climbing for many New Yorkers, and transportation experts and business leaders across the state are urging lawmakers to act on Gov. Kathy Hochul’s plan aimed at lowering auto insurance rates.
The CAR Coalition said New Yorkers are paying an average of $4,000 a year for coverage, nearly double the national average, with some drivers facing bills as high as $7,000 annually.
Supporters of the governor’s proposal point to organized insurance fraud as a major factor driving up costs, including staged car crashes.
Orchestrated collisions can be used to exploit New York’s no-fault system, which allows accident victims to receive compensation regardless of who caused the crash.
State officials said staged crashes and organized fraud can add as much as $300 per year to the average driver’s insurance costs.
A recent poll found 86% of New Yorkers support Hochul’s plan to lower auto insurance rates.
State data shows the scope of the problem: In 2023, New York reported more than 1,700 staged crashes, the second-highest total in the nation.
Insurance carriers reported more than 43,800 suspected motor vehicle insurance fraud incidents to the state Department of Financial Services in 2025.
Hochul’s plan includes partnering with district attorneys statewide to target organized fraud rings and restricting damage awards for drivers who are mostly at fault for causing an accident.
The proposal would also allow insurance companies to offer discounts when drivers participate in programs intended to reduce unsafe driving.
Under the plan, defendants found to be less than 50% at fault would be responsible only for damages proportional to their share of fault.
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State officials said the measures are designed to lower premiums over time, strengthen accountability and make vehicle insurance more affordable.