NEW REPORT: FRAUD AND LEGAL ABUSE ARE DRIVING NEW YORK’S AUTO INSURANCE AFFORDABILITY CRISIS
New Yorkers Pay Nearly Double the National Average for Car Insurance – $4,031 a Year Compared to $2,400 Nationwide
NEW YORK – Citizens for Affordable Rates (CAR) today responded to the Partnership for New York City’s new report, “Excessive Litigation Is Driving New York’s Affordability Crisis,” highlighting how legal system abuse and insurance fraud are fueling New York’s skyrocketing car insurance premiums – which are 52% higher than the national average.
New Yorkers pay an average of $4,031 a year for full coverage – nearly double the national average of $2,400. For a typical family, that’s nearly $700 a month just for insurance.
The report’s findings underscore CAR’s mission to tackle the root causes of New York’s affordability crisis:
No-fault insurance fraud: New York’s no-fault system accounts for up to 93% of all health care fraud reported to the state’s insurance regulator, driving premiums ever higher.
Taxi and for-hire vehicle claims: NYC’s largest insurer reports that up to 70% of claims are fraudulent, contributing to its insolvency and threatening thousands of drivers’ livelihoods.
Litigation costs: New York households pay over $7,000 annually in tort costs – 67% above the national average and the second-highest in the country.
“This report confirms that New Yorkers are paying a hidden tax on car insurance because of rampant fraud and a broken legal system. It's not the cost of big city living – it's the cost of inaction in Albany,” said a spokesperson for CAR. “Outdated laws and systemic fraud – from staged accidents to medically unnecessary procedures – are driving up insurance rates for everyone.”
CAR calls on lawmakers in Albany to enact common-sense reforms that would reduce fraud, fix the broken legal system, and bring New York’s insurance costs in line with the rest of the country.
“This is an affordability crisis affecting every New Yorker and it requires statewide solutions,” the spokesperson added. “Albany has the tools to stop the fraud, lower rates, and make insurance affordable again for families, drivers, and small businesses across the state.”
About Citizens for Affordable Rates (CAR)
Citizens for Affordable Rates is a coalition of consumers, advocates, and organizations dedicated to addressing the root causes of high insurance premiums in New York. Through advocacy, education, and policy reform, CAR works to build a fair, transparent, and affordable insurance system for all New Yorkers.