Gov. Kathy Hochul on Oct. 8.
Susan Watts/Workplace of Governor Kathy Hochul
The wheels turned throughout Gov. Kathy Hochul’s 2026 State of the State on Tuesday when she introduced a slate of recent proposals aimed toward decreasing automobile insurance coverage charges in New York whereas placing the brakes on fraud.
The proposals included reviving a state fraud prevention board, giving insurance coverage firms extra leeway in reporting and alleging fraud, and limiting damages for drivers engaged in illegal habits — or those that are “mostly” at fault — in a collision.
Particular crimes that will warrant the capping of damages embrace uninsured motorists who’ve violated “state financial responsibility laws,” driving whereas impaired and anybody committing or fleeing a felony on the time of the collision.
“In many parts of our state, owning an automobile is not a luxury, it’s essential. Yet, New Yorkers pay the highest auto insurance rates in the nation, averaging $4,000 a year. $1,500 more than the national average,” the governor stated. “Not because New Yorkers are doing anything wrong, but because rampant fraud and runaway litigation costs are jacking up prices.”
As a part of the State of the State, Hochul additionally stated she would “take on” medical suppliers who take part in fraud by signing off on phony medical diagnoses that end in “enormous payouts.” She additionally plans to reform the intense harm threshold by proposing requirements on what constitutes a critical harm. It’s unclear proper now who would make that dedication.
State companies will even search to take motion when New York drivers illegally register their autos in different states, which artificially decreases their protection and raises prices for law-abiding New York drivers, Hochul stated.
“When the system allows out-of-control payouts,” the governor stated. “Those costs get passed on to you in the form of higher monthly bills.”
Advocacy teams, firms and and politicians reply
The Residents Finances Fee (CBC), a watchdog group over metropolis and state funds and insurance policies, stated that decreasing auto insurance coverage prices would profit many New Yorkers.
“Governor Hochul is right to hold the line on taxes to continue to bolster New York’s competitiveness,” Andrew Rein, CBC president, stated in a press release. “Our future is dependent upon residents and companies coming, staying, paying taxes, and creating jobs right here. This requires the State to focus its cash and administration on applications that ship outcomes.
In the meantime, the governor additionally plans to legalize absolutely autonomous autos in New York. Waymo, an organization that makes self-driving automobiles, applauded the hassle.
“Governor Hochul’s proposal to legalize fully autonomous vehicles is a transformative moment for New York’s transportation system, Justin Kintz, head of global public policy at Waymo, said in a statement. “With the governor’s leadership, New York has the opportunity to pair its investments in slower speeds, better traffic enforcement, and first-in-the-nation congestion management strategies with Waymo’s demonstrably safe technology, creating a future where living in New York is safer, easier, and more accessible.”
Talking of slower speeds, NYS Sen. Andrew Gounardes, representing Brooklyn, applauded Hochul for her “commitment to slowing down” autos on the highway.
“I’m grateful for the governor’s commitment to slowing down reckless drivers and making our streets safer,” he stated. “To truly tackle the traffic safety crisis, we need to make robust use of the tools available to us. That means passing my Stop Super Speeders Act to ensure real accountability for folks who refuse to drive responsibly.”
