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    NORTH AMERICAN Newsline                                              JANUARY 23, 2026      |  The Indian Eye 18

                          Gov Hochul Unveils Sweeping

                 Auto Insurance Reforms Aimed at

               Cutting Costs for Working Families

            OUR BUREAU
            ALBANY, NY

                   overnor Kathy Hochul on Tuesday used her
                   2026 State of the State address to announce
            Ga sweeping overhaul of New York’s auto
            insurance system, unveiling a package of reforms
            aimed at curbing fraud, modernizing liability rules
            and easing what advocates describe  as crushing
            premium costs for working families and small busi-
            nesses across the state.
                The proposal marks a major victory for the
            Citizens for  Affordable Rates coalition,  a broad
            alliance of community organizations, consumer
            advocates, business groups and industry experts
            that has spent the past year pressing Albany to
            act on skyrocketing insurance bills, particularly
            in New York City’s immigrant and working-class
            neighborhoods.  Coalition  leaders  said  the  gover-
            nor’s plan reflects many of their core demands and
            represents the most ambitious attempt in years to
            tackle the structural drivers behind the state’s high
            auto insurance rates.
                New York drivers currently pay an average of
            about $336 a month, or just over $4,000 a year, for
            full auto coverage—nearly $1,500 more than the
            national average. In parts of the Bronx, Brooklyn
            and Queens, annual premiums routinely approach   Insurance Fraud Prevention Board would be rein-  greater accountability into the system.
            or exceed $6,000, placing an outsized burden on   vigorated and backed by coordinated enforcement   To address practices that shift costs onto
            households earning modest incomes. Advocates   from the Department of Financial Services, the   law-abiding drivers, the proposal calls for stepped-
            say those costs ripple well beyond drivers, pushing   Department of Motor Vehicles, state police and   up enforcement against New Yorkers who illegally
            up prices for deliveries, taxi and ride-share trips,  criminal  justice  agencies.  New  legislation  would   register vehicles out of state to secure cheaper cover-
            and everyday goods and services.              also give prosecutors broader authority to pursue   age. Insurers, meanwhile, would be given more time
               “For years, working families have paid some   not only drivers involved in staged crashes but also   to investigate suspected fraud beyond the current
            of the highest auto insurance rates in the country   the organizers behind them, allowing district attor-  30-day window, while being required to pay interest
            while bad actors exploited the system,” said José   neys to dismantle entire fraud rings.  on delayed legitimate claims to protect consumers.
            Bayona, a spokesperson for Citizens for Afford-  The proposal further targets medical and legal   The governor paired these enforcement and
            able Rates. “This package goes after outdated rules   practices that critics say have enabled abuse of the   legal changes with a set of consumer protection
            and widespread fraud that have driven premiums   system. It would strengthen oversight of medical   measures aimed at ensuring that any savings flow
            to record levels. It is a game-changer for families   providers who sign off on fraudulent or exagger-  through to policyholders. The Department of Fi-
            struggling in the middle of an affordability crisis.”  ated injury claims, with penalties including license   nancial Services would revisit the state’s Excess
                At the heart of Hochul’s proposal is an eight-  suspension or revocation. It would also tighten   Profit  Law  to  prevent  insurers  from  retaining
            point plan designed to address what state officials   the state’s “serious injury” threshold by introduc-  windfall gains, and companies would be required
            and analysts identify as the main cost drivers in New   ing more objective medical standards, limiting the   to provide clearer explanations for rate increases.
            York’s insurance market. The governor is calling   ability to extract large pain-and-suffering awards   Insurers would also have to offer discounts to driv-
            for a renewed crackdown on organized insurance   for minor or temporary injuries.          ers  who  opt  into  safe-driving  programs  that  use
            fraud, including staged automobile accidents that   Hochul’s plan includes changes to liability and   telematics or smartphone technology, with privacy
            generate inflated medical and legal claims. State   compensation rules that supporters argue would   safeguards built in.
            data show that in 2023 alone, New York recorded   bring New York more in line with other states.   The package will be debated as part of the
            1,729  staged  crashes,  the  second-highest  total  in   Non-economic damages would be capped for driv-  state budget process, with lawmakers expected to
            the nation, with insurers flagging more than 38,000   ers engaged in criminal behavior at the time of an   take it up ahead of the April 2026 deadline. Advo-
            suspected fraud cases. Industry estimates suggest   accident, such as driving uninsured, impaired or   cates plan to continue lobbying through the legis-
            such schemes can add hundreds of dollars a year   while  fleeing  a  felony.  The  state  would  also  lim-  lative session, warning that delays would prolong
            to the average driver’s premium.              it such damages for drivers found to be mostly   financial  strain  on  families  already  squeezed  by
                Under the plan, the Motor Vehicle Theft and   at fault in a crash, a move framed as introducing   rising housing, food and childcare costs.

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