THREE NEW REPORTS FROM INDUSTRY, TECH, AND CIVIC GROUPS: NEW YORK’S AUTO INSURANCE RATES ARE OUT OF CONTROL
NEW YORK – New Yorkers are paying up to double the national average for car insurance, with some drivers facing annual premiums exceeding $6,000, according to three new reports from a diverse set of organizations. Despite their different perspectives – insurance industry experts, center-left tech policy advocates, and one of New York City’s leading civic organizations – all reached the same conclusion: New York’s auto insurance system is out of control, and families across the state are paying the price.
The findings from the Insurance Information Institute (Triple-I), Chamber of Progress, and The Partnership for New York City reveal an affordability crisis that cuts across political lines, hitting working families, young drivers, and undermining the state’s economic competitiveness.
“The consensus is clear – New York has officially become the national capital of car insurance unaffordability,” said James Freedland, a spokesperson for Citizens for Affordable Rates (CAR). “Industry analysts, center-left tech advocates, and the city’s leading civic organization all agree that New York’s auto insurance system is broken. In some parts of the state, drivers are paying more than $6,000 a year for coverage that costs half as much elsewhere in the country. These reports show New York is an outlier in the worst way possible, and the Legislature must support Governor Hochul’s affordability plan to rein in the fraud and abuse driving these costs.”
Insurance Information Institute (Triple-I)
The Insurance Information Institute (iii), a trusted, data-driven voice of the insurance sector, found that New York households paid the highest level of auto insurance on record for the state and it’s among the most expensive nationwide. Toplines:
New York ranks as the 4th least affordable state for auto insurance overall.
Elevated repair costs and severe injury claims tied to legal system abuse are putting persistent upward pressure on premiums.
New Yorkers now spend 2.23% of median household income on auto insurance – far above the national average.
Chamber of Progress
A new report from Chamber of Progress, a center-left technology and innovation policy coalition focused on pocketbook issues, found that New York auto insurance premiums rose 24% between 2020 and 2024, far outpacing wage growth (13%) and inflation. Toplines:
Full-coverage premiums now average more than $4,000 per year statewide.
The report highlights stark geographic and economic inequities, with Brooklyn drivers paying over $6,700 per year on average, and some young drivers and low-income workers facing premiums approaching $10,000 annually – pricing many out of car ownership and economic opportunity.
The Partnership for New York City
The Partnership for New York City, a nonprofit representing more than 300 preeminent corporate, investment, and entrepreneurial firms, released a new affordability briefing building on its earlier research into litigation costs. Toplines:
New York’s average annual cost for minimum coverage is the highest in the nation – 25% higher than New Jersey and 94% higher than California.
The report points to “nuclear verdicts” – jury awards exceeding $10 million – and a No-Fault insurance system in which 75% of all insurance fraud reports in New York are No-Fault related.
In response to these mounting costs, Citizens for Affordable Rates is urging the Legislature to move swiftly on Governor Hochul’s recently announced plan to reduce car insurance costs for drivers, which would directly target the fraud and legal abuses driving up premiums by:
Cracking Down on Staged Accidents: Granting prosecutors authority to seek criminal penalties against those organizing staged crashes and medical providers who sign off on fraudulent diagnoses.
Strengthening Anti-Fraud Programs: Giving insurers more time to investigate and report fraud – while ensuring consumers benefit from the resulting savings.
Tightening the Serious Injury Threshold: Replacing vague legal definitions with objective medical standards to prevent “jackpot” awards for minor injuries.
Modernizing Rules: Lowering massive payouts for drivers engaged in criminal behavior at the time of an accident or who are mostly at fault.
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