New York needs to pop the hood on car insurance rates

"In the last five years, instances of suspected auto insurance fraud in New York skyrocketed - increasing more than 80% to a staggering 43,811 incidents in 2025 alone. At the same time, Long Island's average annual auto insurance premium also rose more than 80% since 2019 in some areas, reaching nearly $5,000 in communities like Inwood and Valley Stream."

"Among Hochul's ideas: to make the state's Motor Vehicle Theft and Insurance Fraud Prevention Board more powerful and to allow prosecutors to seek wider criminal penalties against those involved in staged accidents. She also hopes to change the definition of serious injuries to stop people from gaming the system. And Hochul wants to limit insurance payouts for pain and emotional suffering for those acting illegally, such as drunken drivers."

"As Hochul has pointed out, there is a model for success in Florida, which instituted similar reforms and saw premium declines. Premiums among private auto insurers in Florida have fallen as much as 20%, and more car insurance companies have started doing business there, fueling competition and lowering prices further."

New York faces a severe auto insurance crisis driven largely by fraud. Suspected fraud incidents surged over 80% to 43,811 cases in 2025, coinciding with Long Island premiums rising 80% since 2019, reaching nearly $5,000 annually in some areas. New Yorkers now pay $341 monthly for full coverage, 52% higher than the national average. Governor Hochul's anti-fraud initiatives include strengthening the Motor Vehicle Theft and Insurance Fraud Prevention Board, increasing criminal penalties for staged accidents, redefining serious injuries, and limiting payouts for illegal conduct. Florida's similar reforms reduced premiums by up to 20% and increased competition. New York's Excess Profit Law provides a foundation for implementing comparable reforms.

Read at Newsday