New York Tackles High Car Insurance Costs With New Proposals

On February 11, 2026, proposals were announced by New York State Governor Kathy Hochul today to bring down the costs of auto insurance rates, as well as tackle fraudulent claims in the Empire State.

The proposal is about taking common-sense steps to battle fraud, limit damages paid out to bad actors, and ensure that consumers, rather than insurance companies, are prioritized.

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According to the announcement, residents of New York State pay an average of around $4000 annually for car insurance. That rate is one of the highest in the nation, nearly $1,500 above the national average.

Watch Governor Hochul's Video Below

The Governor's announcement noted that those high costs are due to a combination of fraud, litigation, legal loopholes, and enforcement gaps, with staged crashes and associated insurance fraud.

For most people, car insurance isn’t a luxury; it’s a necessity, especially here on Long Island, where people rely on their cars to get to work, get to school, or even go grocery shopping. These common-sense proposals will crack down on the bad actors that are driving up the cost of car insurance and putting that financial burden on innocent, hardworking New Yorkers. - New York State Governor Kathy Hochul

Governor Hochul's proposal to crack down on auto insurance fraud includes:

• Reinvigorating the State’s Motor Vehicle Theft and Insurance Fraud Prevention Board, empowering it to better support the ability to investigate and prosecute insurance fraud across the state
• Legislation to ensure prosecutors can seek criminal penalties against any individual responsible for organizing a staged accident, not just the particular individual behind the wheel
• Partnering with District Attorneys across New York to help build cases that put an end to the organized fraud that’s robbing New Yorkers via elevated insurance rates
• Strengthening efforts to take on medical providers who participate in fraud by signing off on phony medical diagnoses that result in enormous payouts
• Taking action when New York drivers illegally register their vehicles in other states, which artificially decreases their coverage and raises costs for law-abiding New York drivers

For more information, visit Governor Hochul's website.