Bringing Down the Cost of Vehicle Insurance

Limiting Damages for Individuals Engaging in Unlawful Behavior at the Time of an Accident
When drivers are engaging in unlawful behavior at the time of an incident, they shouldn’t be able to win sizable insurance payouts. However, current law permits individuals committing crimes, including impaired driving, to receive generous payouts for non-economic damages, such as pain and suffering and emotional distress, which are paid from the premiums contributed by law-abiding drivers. Governor Hochul will cap the payout on these types of non-economic damages for drivers using or operating a car while engaging in criminal behavior at the time of the incident, including uninsured motorists, individuals convicted of driving while impaired at the time of the incident, and individuals committing a felony or fleeing one at the time of the incident.

Limiting Damages for Individuals Who Are “Mostly” At Fault in Causing an Accident
New York is in a minority of states that allow drivers that are deemed “mostly” at fault in an accident to still collect extensive damages, including non-economic damages. This means that in New York, even the driver deemed mostly at fault for an accident can walk away with a sizable payout for that accident. Most states have common-sense rules which only permit recovery of damages if a plaintiff is not primarily at fault for the accident. The Governor is seeking changes to the state’s laws that will limit the damages a driver can obtain if they are mostly at fault for an accident, introducing a measure of accountability for who is compensated by insurance after an incident.

Tightening the Serious Injury Threshold
New York’s no-fault insurance law allows for individuals seriously injured in an auto accident to make claims for compensation that stretch beyond reimbursement for the medical expenses or lost wages associated with an injury. This additional compensation is intended to offer support for non-economic damages, like the pain and suffering of victims with serious injuries. New York’s legal definition of serious injury is currently vague, applied inconsistently, and can include temporary injuries that only sideline an individual for a short time following an accident.

Governor Hochul will reform the serious injury threshold by proposing objective and fair medical standards for what qualifies as a serious injury. This reform will avoid unnecessary and expensive litigation, and help stop individuals from exploiting the system to win payouts that are not aligned with the severity of their injuries and push everyone else’s rates up.

Reforming Joint and Several Liability
In New York, in personal injury cases arising from auto accidents with more than one defendant, each defendant can be held responsible for the entire amount of non-economic damages, regardless of their allocation of fault, if the other defendants fail to pay.

New York would join 28 other states in adopting a rule that would change this standard for defendants who are less than 50 percent at fault, so that these defendants are held responsible only for the damage they caused. This will allow insurance companies to price premiums lower, since they will only have to account for damages caused by the people they are insuring.