MORE STATEWIDE VOICES CALL ON LAWMAKERS TO PASS GOV. HOCHUL’S PLAN TO LOWER CAR INSURANCE RATES

Leaders Sound Alarm on Staged Auto Crash Crisis Pushing Average Premiums Over $4,000

ALBANY – Transportation experts and business leaders across New York urged the Legislature to pass Governor Kathy Hochul’s comprehensive plan to lower auto insurance premiums. The call to action comes as New Yorkers are paying an average of over $4,000 annually for coverage – nearly double the national average – with some residents facing staggering bills of up to $7,000.

One driver of these skyrocketing costs is a surge in organized insurance fraud, specifically staged car crashes. New York now ranks second in the nation for these schemes, where criminal rings force unsuspecting drivers into accidents. These orchestrated collisions allow fraudsters to exploit the state’s no-fault system, siphoning millions through inflated medical bills and sham lawsuits – a “fraud tax” that adds an estimated $300 to every New Yorker's premium. 

A recent poll showed 86% of New Yorkers support Gov. Hochul’s plan to lower auto insurance rates. 

Below is a sampling of respected voices calling for action:

New York City

  • amNewYork: Matthew Daus, former longtime Chairman of the NYC Taxi and Limousine Commission, highlights how Governor Hochul’s reforms target systemic fraud while strengthening enforcement, ensuring insurance costs reflect real risk rather than criminal activity.

Long Island

  • InnovateLI: Phil Andrews, President of the Long Island African American Chamber of Commerce, underscores that cracking down on insurance fraud is a small business win, arguing that reform will lower premiums, protect local employers, and promote fairness in the market.

Hudson Valley

  • River Journal: John Ravitz, Executive Vice President and Chief Operating Officer at the Business Council of Westchester, emphasizes the economic impact of staged crash schemes, noting that these organized fraud networks inflate premiums and threaten businesses and families alike.

These leaders join a chorus of recent voices urging the passage of Gov. Hochul’s plan to reduce New York’s out-of-control auto insurance costs: 

  • Western New York 

    • Buffalo News: Rev. James Lewis emphasizes the human cost, centering insurance unaffordability as an equity that disproportionately burdens low-income families and communities of color.

  • Capital Region 

    • Albany Times Union: Transportation expert Matt Daus highlights how staged crashes and outdated liability rules drive widespread economic strain, urging for reforms that strengthen anti-fraud enforcement.

  • Hudson Valley 

    • Mid-Hudson News: Retired officer Ryan Law details the "staged crash crisis," noting that sophisticated rings manufacture accidents to trigger massive payouts. He calls for the “whole-of-government” approach proposed by Governor Hochul to dismantle these networks.

  • Central New York 

    • Syracuse Post-Standard: The Chamber of Progress argues that these "sky-high" rates impede economic competitiveness and burden small businesses as much as individual drivers.

  • Long Island / NYC 

    • Newsday: Lauren Zelt of the PACT coalition outlines how systemic fraud and abuse contribute to runaway premiums, calling for restored fairness in the insurance market.