For years, New Yorkers have lived with some of the highest auto insurance premiums in the country – driven in large part by outdated laws, systemic fraud and a legal framework that rewards abuse while penalizing honest drivers, according to Matthew W. Daus, Esq., ex-Commissioner/ Chair of the NYC Taxi & Limousine Commission (TLC) and former General Counsel at the agency. Mr. Daus authored an opinion piece that ran in the Times Union, examining how Gov. Hochul’s proposed auto insurance reforms could restore accountability, combat fraud and lower crushing costs for New York drivers.
“Gov. Kathy Hochul’s new plan to tackle skyrocketing auto insurance costs deserves support, not only because it promises relief for drivers but because it signals a long-overdue reset of a broken system,” noted Daus. “The average New Yorker pays roughly $336 a month for car insurance, totaling just over $4,000 a year – nearly $1,500 more than the national average. Downstate costs are often even higher. But even in western New York and the Capital Region, drivers pay significantly more than their counterparts elsewhere in the country for the same coverage.”
According to Daus, staged crashes, exaggerated injuries and fraudulent claims have quietly driven up premiums for law-abiding drivers. Industry estimates suggest that fraud alone inflates insurance bills by as much as $300 per driver per year. In 2023, insurers reported over 38,000 suspected auto insurance fraud cases to state regulators – including over 1,700 deliberately staged crashes. These organized schemes thrive in gaps created by outdated laws and weak enforcement.
“Meanwhile, families and small businesses have absorbed annual premium hikes, including a steep 13.5% increase in 2025 alone,” Daus explained. “These costs ripple throughout the economy, raising prices for goods and services, squeezing vehicle-dependent businesses and making it harder for working New Yorkers to get by in an already-unforgiving affordability crisis.”
Daus says the governor’s plan takes direct aim at the cost-drivers behind high premiums by strengthening anti-fraud enforcement, cracking down on staged accidents and exaggerated injury claims, modernizing liability rules that fuel excessive litigation and expanding the use of technology and data to better reward safe driving.
Source: Windels Marx
