New York Proposes Crackdown on Auto Insurance Fraud to Lower Rates

Governor Hochul aims to tackle staged accidents and fraudulent claims to reduce costs for drivers

Jan. 28, 2026 at 6:15am

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New York Governor Kathy Hochul is unveiling proposals to lower the state's high car insurance rates, which are among the highest in the nation. Hochul says insurance fraud, including staged accidents and phony pain and suffering claims, have driven up costs by 58% in the past three years. Her plan includes going after fraudulent healthcare providers and giving insurers more time to identify fraudulent claims.

Why it matters

New Yorkers pay on average over $4,000 per year for car insurance, $1,500 more than the national average. Hochul's proposals aim to put more money back in the pockets of drivers by tackling the root causes of the state's high insurance costs.

The details

Hochul's plan includes cracking down on healthcare providers who issue phony diagnoses and giving insurance companies more time - from 30 days to an unspecified longer period - to identify and reject fraudulent claims. The governor says these "common-sense proposals" will increase transparency and put money back into people's pockets during a time of high living costs.

  • In the past three years, insurance fraud in New York has increased by 58%.

The players

Kathy Hochul

The Governor of New York who is unveiling proposals to lower the state's high car insurance rates.

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What they’re saying

“These common-sense proposals will not only increase auto insurance transparency for New Yorkers, but they will also put money back into people's pockets, especially during a time when the cost of living is just too high.”

— Kathy Hochul, Governor of New York (hudsonvalleypost.com)

What’s next

The governor's proposals will need to be approved by the state legislature before they can be implemented.

The takeaway

New York's high car insurance rates have been driven up by a surge in insurance fraud, including staged accidents and fraudulent claims. Governor Hochul's plan to crack down on these practices aims to provide relief to drivers struggling with the state's exorbitant insurance costs.