New York Governor Kathy Hochul announced an agenda aimed at making New York more affordable that includes fighting auto insurance fraud and mandating property insurance discounts for mitigation efforts.
In her 2026 State of the State address, Hochul vowed to crack down on fraud including staged accidents that are behind “sky high” auto insurance premiums averaging $4,000 a year — $1,500 more than the national average. She advocated reforming the serious injury threshold under the state’s no-fault insurance law and other anti-fraud measures.
On the home insurance issue, she said she would focus on policyholder discounts and a “check” on insurer profitability.
She also expressed support for dedicating resources to reduce workers’ compensation fraud.
In addition to insurance costs, Hochul’s affordability agenda includes advancing universal childcare statewide, bringing down utility costs, strengthening protections for renters, expanding food assistance, and eliminating state income taxes on tipped wages up to $25,000.
Auto Insurance Fraud
Why do New Yorkers pay so much for auto insurance?
“Not because New Yorkers are doing anything wrong, but because rampant fraud and runaway litigation costs are jacking up prices,” Hochul said. “We’re putting the brakes on fraud and ending a system that rewards illegal behavior. If you were driving drunk, driving without a license, or committing a felony at the time of a crash, you should not get a payday.”
The Democratic governor said New Yorkers “should not pay more for the same coverage” and vowed this is the year, the state does “something about it.”
According to the state, there were more than 1,729 staged crashes in the state in 2023. In total, insurance carriers reported 38,270 incidents of suspected motor vehicle insurance fraud that year — a record high.
Hochul promised to take on medical providers who sign off on phony medical diagnoses that result in big payouts. The state will also move to ensure that prosecutors can seek criminal penalties against those responsible for organizing a staged accident.
Serious Injury Threshold
New York’s no-fault insurance law has a “serious injury” threshold intended to screen out minor injuries from personal injury litigation. However, the definition of serious injury is vague and can include temporary injuries. The governor is proposing reworking the threshold with objective and fair medical “standards for what actually qualifies as a serious injury.” This, she offered, should avoid unnecessary litigation and reduce payouts that are not aligned with the severity of injuries.
The governor wants a cap on non-economic damages for drivers engaging in criminal behavior at the time of an incident including uninsured motorists who have violated state financial responsibility laws; individuals convicted of driving while impaired; and those committing a felony or fleeing at the time of an incident.