Two decades ago, the state created a fund with tens of millions of dollars that was supposed to be in a lockbox to crack down on insurance fraud - but instead was funneled simply to law enforcement agencies' general operating funds. As a result only a tiny portion was spent actually fighting fraud.
The Uber-backed plan to lower car insurance rates has drawn criticism from legal professionals and crash victim advocates who say the legislative changes would strip crash victims of rights while misstating the drivers of high costs. Hochul and the car insurance industry have argued that fraud and "jackpot" payouts have increased costs for insurance companies so much that they can't reduce premiums.
The governor's proposal guts long-standing protections for crash victims and benefits insurance companies at the expense of people harmed by negligent drivers. It would result in more denied claims, less accountability for dangerous driving, and increased blame placed on victims. It will shift financial responsibility from those responsible back onto victims. It does not prevent crashes, improve street safety or guarantee lower insurance premiums. Similar reforms in other states did not reduce insurance costs. Instead, injured pedestrians and cyclists will pay the price.