Governor Kathy Hochul has pledged to save drivers a significant amount of money on car insurance by pushing for changes to state laws governing personal injury lawsuits. However, powerful attorneys are determined to block these reforms.
Hochul announced plans to implement reforms aimed at curbing soaring auto insurance premiums in New York, where drivers pay an average of $4,000 per year—an alarming $1,500 more than the national average. Central to her proposal is changing the state’s vague “serious injury” threshold to exclude minor lawsuits that often lead to costly payouts.
The New York State Trial Lawyers Association, a well-funded lobbying group with close ties to Democratic lawmakers, has already expressed strong opposition. In a statement, the association argued, “Weakening victim protections lets Big Insurance off the hook while working families pay more.”
The group also released a video juxtaposing Governor Hochul with Florida Republican Ron DeSantis, highlighting their mutual criticism of lawsuit payouts. “The idea that auto insurance companies will suddenly ‘do the right thing’ and lower rates is laughable,” the association said. “New Yorkers are too smart to buy it. These are the same insurers that jack up our premiums year after year, post record profits—and get regulators to sign off on it.”
Currently, New York’s legal definition of “serious injury” is broad and can include relatively minor injuries that cause short-term disability. Hochul wants to revise this threshold by introducing “objective and fair medical standards” to determine what qualifies as a serious injury. She believes the existing ambiguity allows individuals to “game the system” and pursue disproportionately high “jackpot” awards in court.
New York follows a “comparative negligence” standard for accident liability, meaning a driver found mostly at fault can still claim a percentage of damages, including non-economic losses. Hochul addressed these issues during her annual State of the State address, emphasizing the need to tackle fraud and excessive litigation costs that insurance companies claim cause price hikes.
“Let’s be clear about how that happens,” Hochul said. “When the system allows out-of-control payouts, those costs get passed on to you in the form of higher monthly bills. New Yorkers should not pay more for the same coverage, and this is the year we’re going to do something about it.”
She continued, “We’re putting the brakes on fraud and ending a system that rewards illegal behavior. If you were driving drunk, driving without a license, or committing a felony at the time of a crash, you should not get a payday.”
While the Trial Lawyers Association supports “reasonable measures” to combat fraud and reform insurer practices known for “delay-and-denial,” it opposes changes that would alter liability standards. The association warns such changes could “clog the courts, drag out cases, and give Big Insurance and ride-hailing giants a free ride.” They added, “No New Yorker seriously believes that will make insurance cheaper.”
As part of her reform agenda, Hochul proposes capping non-economic damages for drivers engaged in criminal behavior at the time of an accident. This would exclude uninsured motorists who violate state financial responsibility laws, individuals convicted of driving while impaired, and those committing felonies or fleeing the scene.
Additionally, she is pushing legislation to empower prosecutors to pursue criminal charges against anyone organizing staged accidents—not just the drivers involved.
The Lawsuit Reform Alliance (LRA) praised the governor’s efforts to fight fraud and limit personal injury awards that inflate premiums. “By tackling rampant fraud and reining in the perverse incentives built into New York’s existing laws, her proposals will help make insurance more affordable and our roads safer,” said LRA Executive Director Tom Stebbins.
Stebbins added, “They’ll also ensure the sophisticated actors who orchestrate these schemes are brought to justice and not merely the vulnerable people drawn into them.”
https://nypost.com/2026/01/15/us-news/hochul-pledged-to-save-nyers-a-bundle-of-money-on-car-insurance-but-plan-already-facing-pushback/