Auto Insurance Reforms Take Effect In N.y. In Effort To Lower Rates

Coverage is nearly twice as expensive as in other states

Part of the governor’s effort to cut auto insurance premiums in New York has gone into effect.

On Wednesday, Hochul announced that the state’s Department of Financial Services, which regulates insurers and other financial entities, has issued new guidance to auto insurance companies requiring they lower their rates to reflect the changes in law made this year.

As part of her agenda for the year, Gov. Kathleen C. Hochul pushed for a package of reforms that she said would meaningfully reduce the price of auto insurance in New York, which is nearly twice as expensive as coverage in other states.

Hochul said she focused on cutting auto insurance rates this year as a part of her broader focus on affordability.

“Since taking office, I have been committed to making New York safer and more affordable, and that includes driving down the cost of auto insurance,” she said.“For most New Yorkers, driving is a necessity to get to school, work or run daily errands and it’s imperative that we ensure these savings are passed down to hard working families.”

Hochul’s changes, which were enacted in the state budget process, include expanding criminal liability for people involved in staged accidents beyond just the drivers to include all participants, limiting damages for people who are involved in accidents who were breaking the law while driving, requiring people seeking damages for ‘pain and suffering,’ or ‘emotional distress’ to demonstrate they have actually been injured or distressed, limiting damages for people ‘mostly at fault’ for an accident, and a new requirement that insurance companies seek approval from the state’s Department of Financial Services for any rate increases.

Now, those changes are in effect and the state is expecting insurers to reflect the anticipated cut in court-awarded damages in their insurance rates.

“Today's guidance makes clear the department’s expectations that insurers include expected savings from Governor Hochul’s reforms in any pending and future rate applications,” said acting DFS Superintendent Kaitlyn Asrow. “The department is engaging in a collaborative approach with all stakeholders to lower costs for New Yorkers.”

© 2026 Watertown Daily Times (Watertown, N.Y.). Visit www.watertowndailytimes.com. Distributed by Tribune Content Agency, LLC.

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