Business Groups and Trade Associations Urge Legislature to Act on Governor Hochul’s Auto Insurance Reform Package
ALBANY – A coalition of leading pro‑business and trade associations is urging the New York State Legislature to move forward with Governor Kathy Hochul’s proposed auto insurance reforms, warning that unchecked fraud and excessive litigation are continuing to push costs higher for families and employers across the state.
New York remains one of the most expensive states in the country for auto insurance. In 2024, the state ranked third nationally for suspicious vehicle accident claims, including staged and paper accidents, with more than 52,000 suspected cases of insurance fraud reported, according to the National Insurance Crime Bureau. These fraudulent activities ultimately raise costs for law‑abiding drivers and businesses across the state.
The impact on consumers is significant. New Yorkers now pay more than $4,000 a year on average for auto insurance—nearly $1,500 more than the national average. The state’s average expenditure per premium is $1,753, well above both the U.S. average and other no‑fault states.
The coalition pointed to recent reforms in other states as proof that meaningful change can make a difference. In 2023, Florida enacted litigation reforms aimed at curbing abuse, and today, 80 percent of that state’s auto insurance market is reducing rates by as much as 20 percent—delivering real, measurable relief to consumers.
“Auto insurance fraud and excessive litigation are hidden taxes on every New Yorker who plays by the rules—families, small businesses, and employers alike,” the group stated. “Governor Hochul’s reforms are a commonsense step to curb abuse, rein in costs, and bring real relief to consumers and job creators. To make New York more affordable and competitive, the Legislature needs to act now.”
Members of the group who emphasized that failure to address fraud and rising insurance costs will continue to undermine affordability include:
- The Business Council of New York State, Inc.
- National Federation of Independent Business
- Food Industry Alliance of New York State, Inc.
- Capital Region Chamber of Commerce
- New York Farm Bureau
- Associated Builders and Contractors
- New York State Auto Dealers Association
- Northeastern Retail Lumber Association
- Trucking Association of New York