BROAD, DIVERSE COALITION APPLAUDS GOV. HOCHUL’S BOLD PLAN TO DELIVER AUTO INSURANCE RELIEF FOR NEW YORKERS
Plan Takes Aim at Root Causes of Skyrocketing Premiums as New Yorkers Pay Nearly Double the National Average
ALBANY – Today, a broad coalition led by Citizens for Affordable Rates (CAR) – including consumer advocates, industry experts, and small business leaders – applauded Governor Kathy Hochul’s bold proposals to lower New York’s skyrocketing auto insurance premiums. The Governor’s plan tackles the biggest cost drivers head on by closing loopholes exploited by bad actors, strengthening fraud enforcement, updating outdated legal standards, and modernizing liability rules that have fueled higher car insurance premiums for years.
New York drivers pay some of the highest auto insurance rates in the nation – nearly double the national average. Bankrate estimates full coverage costs $4,031 annually in New York compared to $2,679 nationwide, while minimum coverage averages $1,729 versus $808 nationally. Compounding the burden, drivers faced a 13.5 percent premium increase in 2025, the fourth-highest in the country.
Coalition members say Governor Hochul’s leadership represents a turning point for New Yorkers who have paid inflated premiums for far too long:
“For years, New Yorkers have paid some of the highest auto insurance rates in the country, while bad actors exploited the system to turn a profit,” said James Freedland, a spokesperson for Citizens for Affordable Rates. “Governor Hochul’s plan takes decisive action against the outdated rules and widespread fraud that have driven premiums to record levels. This package is a game-changer for the millions of families struggling amid the state’s affordability crisis.”
“Auto insurance premiums affect nearly every sector of our local economy. From the small delivery business to the everyday commuter, these excessive costs drag down growth. Governor Hochul is absolutely right to address the root causes of this crisis and take decisive action to lower out-of-control costs,” said former NYC Taxi & Limousine Commissioner Matthew W. Daus.
“Meaningful reform requires standing up to the forces that profit from high insurance costs. Governor Hochul is doing exactly that,” said Zach Miller, Vice President of Government Affairs at the Trucking Association of New York (TANY). “Her proposal is critical to restoring balance to our insurance market and delivering much-needed relief to the small and mid-sized businesses that keep New York’s economy moving.”
“Communities of color in Western New York have been hit hard by sky-high auto insurance rates for years, paying far more than the national average for the same coverage. Governor Hochul’s proposal takes on the special interests that have profited from this broken system and delivers real relief to working families. This is bold action toward fairness, equity, and making transportation affordable for everyone in our communities,” said Rev. James A. Lewis, President, Buffalo-Niagara National Action Network.
“Governor Hochul deserves credit for taking on the special interests that have inflated New York’s insurance costs for too long,” said Dan Rodriguez, Vice President of Public Affairs at Coach USA. “By prioritizing real reform over the status quo, she is making it clear that affordability must come first. This proposal is a massive step toward fixing a system that has been broken for years.”
“It is easy to overlook the complexity of cost drivers causing personal auto insurance premiums to increase faster than overall inflation. Governor Hochul is proposing comprehensive solutions for lasting structural relief – in particular, proposals to enhance fraud enforcement, modernize litigation rules, and enact serious injury and comparative negligence reforms. Her willingness to take a holistic approach is a win-win for both insurance carriers and personal auto policyholders, and offers a clear path towards increasing personal auto insurance affordability and availability,” said Michel Léonard, PhD, CBE Chief Economist and Data Scientist at the Insurance Information Institute.
“Governor Hochul is taking on one of the most stubborn and unfair cost drivers facing New Yorkers: auto insurance. For for-hire vehicle drivers, who work as independent contractors and must pay their own auto liability coverage, these costs hit especially hard. Cracking down on fraud and abuse will help bring down premiums for drivers who play by the rules, and that relief will flow directly to passengers through lower fares for black car, Uber, and Lyft trips. These reforms also reinforce the broader fight against fraud across the transportation system, which supports our work at the Black Car Fund to protect honest drivers and ensure the workers’ compensation system works as intended. We applaud the Governor for tackling this problem head-on," said Ira Goldstein, Executive Director The Black Car Fund.
“Every dollar New Yorkers overpay for car insurance is a dollar taken away from groceries, rent, or education,” said John Park, a member of Queens Community Board 7 and a small business owner. “We’re grateful Governor Hochul is finally confronting this broken system head on. Her leadership is exactly what families have been waiting for to get their household budgets back under control.”
“For too long, New Yorkers, especially Black people and people of color, have been hit by auto insurance rates that are double the national average. Governor Hochul’s proposal confronts the special interests profiting from a broken system and is a critical step toward lowering premiums and delivering real relief for working families across New York,” said Tuulikki Robertson, Executive Director, The Black Institute.
“The math simply doesn’t add up for New York drivers anymore: we pay nearly twice the national average for the same basic coverage. We welcome Governor Hochul’s commitment to delivering much-needed reforms. This action signals that the days of unchecked, sky-high premiums are coming to an end,” said Eduardo Giraldo, President of the Queens Hispanic Chamber of Commerce.
“New York’s working families, especially those in Black and underserved communities, have been trapped in an auto insurance system that puts special-interest profits ahead of people,” said Terri Arnold-McKenzie, Chief Operations Officer, Urban League of Long Island. “With premiums soaring to nearly double the national average, families are being forced to choose between transportation, food, housing, and basic necessities. Governor Hochul’s proposal represents a critical lifeline and a meaningful step toward fairness. It directly acknowledges the affordability crisis crushing our neighborhoods and signals that relief for hardworking New Yorkers can no longer wait.”
"As a member of the governor’s auto insurance task force, I applaud Governor Hochul for laying out a plan to tackle the root causes of skyrocketing auto insurance rates. By addressing systemic fraud, updating legal standards and prioritizing accountability, this plan establishes a practical, consumer-focused framework for achieving much needed relief for drivers throughout the state. We look forward to continuing to work with the administration and other stakeholders to ensure these reforms lead to meaningful and lasting cost savings for New Yorkers and our drivers,” said Cira Angeles, Livery Base Owners.
“For families struggling across New York State, high auto insurance rates are not an inconvenience – they are a barrier to opportunity. Governor Hochul’s plan takes meaningful steps to confront the policies and special interests that have driven car insurance rates out of control. We applaud her for recognizing the urgency of this affordability crisis and for standing up for working families who simply want a fair chance to get ahead,” said Reverend Frank Bostic of Pilgrim Missionary Baptist Church & Fruitbelt United.
“High auto insurance rates have been a hidden tax on our community for decades,” said Hyun T. Lee, President of the Korean American Association of Queens and a small business owner. “We applaud Governor Hochul for recognizing this injustice and stepping in with a plan to bring premiums down. This is a long-overdue victory for fairness and affordability.”
“New Yorkers have been paying the price for a broken auto insurance system for far too long. Governor Hochul has recognized the problem and is taking action to bring the era of unchecked premiums and outdated rules to an end. We commend her for taking decisive action to modernize the system, crack down on abuse, and put affordability back at the center of insurance policy,” said Mark Talley, Executive Director of Agents for Advocacy.
“When essential costs like insurance spiral out of control, our small businesses and local merchants feel the sting first. Governor Hochul’s proposal is a smart, pro-affordability move that benefits drivers and the local economies they support. It is exactly the kind of economic relief New Yorkers need right now,” said Jairo Guzman of the Mexican Coalition for the Empowerment of Youth and Families.
“For years, New Yorkers have been squeezed by auto insurance rates that are twice the national average. Governor Hochul is taking bold action to confront the special interests that have kept costs artificially high. If passed, this proposal will be a major victory for working families fighting to get ahead amid New York’s affordability crisis,” said Wayne Devonish, Principal Founder, Chairman 500 Black Men Making a Difference.
“At a time when operating costs are rising across the board, auto insurance has become a real barrier for working people and immigrant-owned small businesses. Governor Hochul’s proposal recognizes the urgency of this issue. Meaningful car insurance reform would help families stay employed, entrepreneurs keep their businesses running, and communities remain economically stable,” said Joel Feliciano, Chief Operating Officer of the Yemeni American Merchants Association.
“Our neighbors across the state are being crushed under an affordability crisis that grows heavier by the day – from food to rent to childcare and now auto insurance. Governor Hochul’s plan recognizes that working families cannot absorb another unchecked cost. We commend her for taking action to reform a broken insurance system that has put profits over people for far too long. Real relief requires leadership – and this proposal is an important step toward putting hard working New Yorkers first,” said Kevin Livingston, Executive Director, 100 Suits.
“As a small business owner in Nassau County, I see firsthand how rising insurance costs are suffocating our local economy. Governor Hochul’s proposal moves beyond political talk and delivers real action to rein in these costs for drivers, passengers, small business owners and employees. We need this kind of leadership to survive and continue serving our communities,” said Sagine Pierre Chalres, Small Business Owner, Sage & Angie.
“Auto insurance costs have become a serious threat to women entrepreneurs and small business owners across New York. Governor Hochul’s budget proposals acknowledge the real-world impact these rising premiums have on business sustainability and economic growth. We thank her for taking action to address the root causes of these increases and for prioritizing affordability for New York’s small business community," said entrepreneur and advocate Sherrie Barr Mack of the MackBarr Group.
Together, coalition members emphasized that Governor Hochul’s budget proposals reflect a shared commitment to finally containing skyrocketing auto insurance costs and putting New York families, workers, and small businesses first.
About Citizens for Affordable Rates (CAR)
Citizens for Affordable Rates (CAR) is a coalition of citizens, advocates, and organizations dedicated to tackling the root causes of high costs in New York. Through advocacy, education, and policy reform, CAR is committed to building an affordable and dependable system for all New Yorkers. For more information, visit: www.citizensforaffordablerates.com