Transit Experts: Governor Hochul’s Reforms Could Lead to Big Savings for Consumers.
Our Bureau
New York, NY
Detailing research that highlights the structural drivers of rising auto insurance costs, the University Transportation Research Center (UTRC) at the City University of New York today released a letter to New York State legislative leaders calling for targeted reforms to improve affordability and return savings to consumers across the state.
Addressed to Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl E. Heastie, UTRC’s letter presents data-driven research identifying the root causes of rising insurance costs and outlining reforms that could help lower premiums for New Yorkers.
“New York drivers, small businesses, and transportation providers are facing rapidly rising insurance costs – nearly double the national average – driven by structural issues that extend beyond market fluctuations,” the organization states. “Without targeted reforms, these costs will continue to increase, placing further strain on consumers and key sectors of the state’s economy.”
UTRC identifies several key structural drivers of rising premiums, including “systemic fraud and staged accidents, exaggerated and inflated claims, [and] litigation dynamics,” which contribute to higher costs across the system. UTRC estimates that these factors function as a “hidden fraud tax” of approximately $200 per policy, directly increasing costs for drivers and consumers.
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.
Transit experts emphasize that targeted policy changes can reduce these pressures and return savings to policyholders. UTRC outlines specific reforms, including enhanced fraud detection, improved data sharing between insurers and regulators, stronger oversight of claims and billing practices, and the adoption of modern underwriting tools such as telematics and usage-based insurance.
The research also highlights how strengthening the State’s Excess Profit Laws could help ensure that cost savings are passed back to consumers. Citing recent data from Florida, UTRC notes that the state’s largest insurers are delivering an average 8 percent rate decrease for 2026, with nearly 80 percent of policyholders expected to see lower premiums. It also references nearly $1 billion in refunds returned to consumers, underscoring how policy and market changes can produce direct financial benefits for drivers.
The analysis also examines the role of fraud and billing practices, identifying staged collisions, no-fault billing abuse, and medically unnecessary treatment as significant contributors to rising loss costs. UTRC suggests that targeted enforcement in these areas could meaningfully reduce premiums.
“In light of these findings, we respectfully urge the Legislature to prioritize targeted, data-driven reforms to address fraud, improve accountability, and modernize insurance practices,” the letter concludes, noting that such measures can help “return cost savings to policyholders” and create a more stable and affordable insurance market for New Yorkers.
