Hochul Accuses Trial Lawyers of Lying to Block Her Plan to Lower NY Car Insurance Costs

Governor claims trial lawyers are misrepresenting the impact of her proposal to curb fraud and cap damages for certain drivers.

Apr. 13, 2026 at 10:23pm

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A photorealistic painting of a solitary car parked on a city street, with warm sunlight casting deep shadows across the scene, conceptually representing the political debate over car insurance reform in New York.As New York's car insurance costs continue to rise, a political battle brews over proposed reforms aimed at curbing fraud and lowering rates.Rochester Today

New York Governor Kathy Hochul is accusing the powerful Trial Lawyers Association of lying about her plan to lower car insurance costs in the state. Hochul's proposal aims to redefine the legal definition of 'serious injury' to cut down on fraudulent claims, as well as cap damages for uninsured, impaired, or convicted drivers. The trial lawyers group has pushed back, claiming the changes would negatively impact legitimate accident victims, but Hochul's team says their analysis shows otherwise.

Why it matters

New York drivers currently pay the highest car insurance rates in the nation, with fraud incidents up 80% over the past 5 years. Hochul's tort reform package is an attempt to address these rising costs, but faces fierce opposition from the influential trial lawyers lobby.

The details

Hochul's proposal seeks to redefine the legal definition of 'serious injury' to curb fraudulent claims like staged accidents. It would also cap damages for victims who are uninsured, convicted of impaired driving, or have a felony conviction related to the accident. The trial lawyers group has presented several cases of accident victims, claiming Hochul's plan would negatively impact their ability to collect damages. However, Hochul's team reviewed the cases and said none of the victims would have been affected by the proposal, which they say does not change the ability of not-at-fault victims to recover economic or non-economic damages.

  • In 2023, New York State had 1,729 staged crashes, ranking second highest in the nation.
  • From 2023 to 2025, New York car insurance premiums increased 13.1% in 2024 and 11.1% in 2025.

The players

Kathy Hochul

The Governor of New York who is proposing changes to the state's car insurance laws.

Trial Lawyers Association

A powerful lobbying group that has been pushing back against Hochul's proposal, claiming it would negatively impact accident victims.

Jen Lunsford

A Democratic Assemblywoman from Rochester who has presented cases of accident victims alongside the Trial Lawyers Association.

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What they’re saying

“Exploiting victims of serious accidents to peddle false information and misconstrue facts is a new low.”

— Hochul Spokesperson

“These claims are blatantly false, just like the fiction being sold to the public that this plan will result in savings. Unlike the paid actors employed by the astroturf groups supporting the governor's pro-insurance agenda, these are real victims who have been seriously injured.”

— Sabrina Rezzy, TLA Spokesperson

What’s next

The spat between Hochul and the trial lawyers lobby is one of the major hold-ups in adopting a new state budget, which was due April 1.

The takeaway

Hochul's proposal to redefine 'serious injury' and cap damages for certain drivers is a controversial attempt to address New York's sky-high car insurance rates, which have been exacerbated by a surge in fraud incidents. The powerful trial lawyers lobby is fiercely opposing the changes, setting up a high-stakes battle over the state's auto insurance policies.