Governor Hochul Secures Reforms to Lower Auto Insurance Premiums for New Yorkers

Tightening the Serious Injury Threshold

Improves statutory definitions to clarify what actually constitutes a ‘serious injury’ so that damages for pain and suffering or emotional distress are reserved for those able to objectively demonstrate that they have suffered a serious injury.

Limiting Damages for Individuals Who Are “Mostly” At Fault in Causing an Accident

Ensures that if a driver is found to be mostly at fault for causing an accident, they cannot sue their victims for outsized payments for damages. This change will put New York in line with most other states.

Applying stringent oversight on insurance companies rates, preventing excess profits, and returning savings to consumers

Puts consumers first by preventing insurance companies from exorbitantly raising rates by setting a legal threshold that prevents excess profits and returns savings to consumers. Additionally, the Budget creates new regulatory safeguards to prevent insurance companies from raising rates without seeking express approval from the Department of Financial Services.

Ensuring Fair Rates for Drivers

Protects consumers by prohibiting insurance companies from setting rates based on extraneous, personal factors like homeownership status, occupation, education level or zip code.