Gov. Kathy Hochul takes aim at car insurance costs, fraud and "staged accidents"
Gov. Kathy Hochul announced new proposals Wednesday to bring down the cost of car insurance and crack down on insurance fraud.
Some of the proposals include strengthening insurer anti-fraud programs, limiting damages for individuals engaging in unlawful behavior and tightening the threshold for what is considered a serious injury.
Hochul called car insurance a necessity, particularly for people who rely on their cars to get to and from work, take kids to school, or to go grocery shopping.
"These common sense proposals will crack down on the bad actors that are driving up the cost of car insurance and putting that financial burden on innocent, hardworking New Yorkers," Hochul said.
Staged crashes in N.Y.
The governor says in 2023 alone, there were more than 38,000 cases of car insurance fraud in New York, including 1,729 "staged crashes."
She took to task "sophisticated actors" who "stage elaborate accidents."
"You can have reckless drivers who slam into your car and then walk away with a big payday. Now, these are staged accidents. Then they get a payday to recover for their pain and suffering. Uninsured drivers who the rest of us end up paying for," Hochul said.
The governor said it's time to slam the brakes on insurance fraud.
"We'll also make it easier to prosecute these staged accidents, strengthen penalties for those who break the law, fund a new cross-agency task force to catch these perpetrators," she said.
But not everyone supports that governor's plan. The New York State Trial Lawyers Association responded, saying in a statement, "Trial lawyers are ready to come to the table for a plan that helps New Yorkers but right now, that table is set for the insurance industry."
You can report auto insurance fraud to The National Insurance Crime Bureau.
New York's high auto insurance
Hochul said New York drivers pay the highest car insurance rates in the nation, averaging over $4,000, which she says is nearly $1,500 more than the nationwide average.
According to The Insurance Information Institute, New York has the third-highest auto insurance cost in the country.
"Eight thousand [dollars] for six months. It's ridiculous," Long Island resident Tiffany Marin said.
"I think it's like $4,000 for half a year for my wife and I for two cars," Long Island resident Dan Brown said.
Auto experts say New Yorkers who rely on their cars should consider bundling car and home insurance, but that's not all.
"Raising your deductible is certainly one way," said Loretta Waters, with The Insurance Information Institute. "Taking driver, defensive driver courses can help as well."
