Gov. Kathy Hochul to propose crackdown on staged crashes that drive up auto insurance rates

ALBANY — Gov. Kathy Hochul is trying to pump the brakes on auto insurance fraud.

Hochul will announce one of her primary affordability initiatives, a crackdown on staged car crashes that drive up drivers’ insurance premiums, during her annual State of the State address Tuesday afternoon.

Hochul’s plan will involve a coordinated effort by State Police and other state agencies, including the departments of Financial Services, Motor Vehicles and the Division of Criminal Justice Services, to break up organized fraud rings.

"Car insurance rates are just too damn high, especially during a time when the cost of living is skyrocketing due to inflation," Hochul said in a statement Monday. "These proposals will drive down the cost of car insurance for hardworking New Yorkers, while also cracking down on the bad actors who make fraudulent claims, increasing the costs for others across the state."

Hochul's office said New York has the second-highest number of staged auto accidents in the country, with 1,729 staged crashes in 2023, the latest year for which data is available. That same year, auto insurance carriers reported a record-high 38,270 suspected cases of motor vehicle insurance fraud to the state. Those scams add as much as $300 to the average driver’s annual insurance bills.

The coordinated crackdown is meant to ensure that as investigators build cases against suspected scammers, they partner with prosecutors across the state to ensure fraudsters are punished. That means going after drivers who stage crashes, fake medical providers who sign off on fraudulent injury claims and drivers who illegally register vehicles out of state to shift costs on to New Yorkers.

Hochul is expected to provide further details on the initiative and several other aspects of the proposal to lower car insurance costs during her speech Tuesday.