Hochul's Auto Insurance Reforms Could Save MTA Millions

Transit chief says money saved could improve bus and subway service

Mar. 13, 2026 at 6:27pm

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The Metropolitan Transportation Authority said on Friday that auto insurance changes proposed by Gov. Kathy Hochul could save the agency nearly $50 million a year in car-crash litigation, money that could help pay for better bus and subway service. MTA CEO Janno Lieber said the city's roughly 6,000 buses are often implicated in traffic collisions where the bus drivers are not at fault, but the agency is targeted by personal injury lawyers who know the MTA can pay.

Why it matters

Fraudulent insurance claims have surged since 2020, pushing up the cost of coverage for both individuals and transit agencies like the MTA. The proposed insurance reforms aim to crack down on staged car crashes and reduce costs, which could free up funds for the MTA to improve service and infrastructure.

The details

The MTA said it had spent $227 million on insurance claims involving city buses last year. Officials estimate the new insurance rules would reduce that sum by 10 percent, or nearly $23 million, and allow the agency to reallocate another $25 million for other priorities. These savings are relatively small for the MTA's $21 billion annual operating budget, but could still help improve service, like the $35 million a year the agency is spending on a bus redesign plan in Queens.

  • The MTA spent $227 million on insurance claims involving city buses in 2025.
  • The proposed insurance reforms could reduce the MTA's insurance costs by 10 percent, or nearly $23 million, per year.

The players

Janno Lieber

The chief executive of the Metropolitan Transportation Authority.

Kathy Hochul

The governor of New York who is proposing the auto insurance reforms.

Marie Therese Dominguez

The commissioner of the State Department of Transportation.

Peter Beadle

A personal injury lawyer and safe-streets advocate who is critical of the insurance reforms.

Andrew Finkelstein

The president of the influential New York State Trial Lawyers Association, who opposes the insurance reforms.

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What they’re saying

“Money we should be spending on great service is going to payoffs to well-connected billboard lawyers instead.”

— Janno Lieber, Chief Executive, Metropolitan Transportation Authority (New York Times)

“There are criminals out there trying to scam the system, and it has to stop.”

— Kathy Hochul (New York Times)

“The simplest way for the M.T.A. to save money is to invest in safety and proper training.”

— Andrew Finkelstein, President, New York State Trial Lawyers Association (New York Times)

What’s next

The insurance reforms proposed by Gov. Hochul will be a priority as she negotiates the state budget with legislative leaders. The reforms face skepticism from some groups, including trial lawyers and safe-streets advocates, who are concerned the changes could leave crash victims with insufficient compensation.

The takeaway

The MTA's endorsement of Hochul's insurance reform proposals highlights the potential for the changes to save the transit agency millions, which could be reinvested to improve bus and subway service across New York City. However, the reforms face opposition from some groups who argue the changes could unfairly burden accident victims.