04.06.2026 How a car insurance battle took over New York’s budget talks
Auto insurance reform is not usually a hot-button issue, but Gov. Kathy Hochul has put it at the center of her affordability agenda. The move has set off a fight in Albany between well-funded lobbyists representing Uber and trial lawyers, as well as the Metropolitan Transportation Authority and street-safety advocates.
The governor aims to lower car insurance costs by cracking down on fraudulent claims and limiting who can recover damages after a crash. She has argued that reducing insurers’ payouts will translate into lower premiums for New Yorkers, which are currently the highest in the country, even as critics warn that nothing in the proposals requires insurers to lower their rates.
Her plan would make it harder for people to sue over minor injuries resulting from car accidents, restrict who can collect noneconomic damages — namely drivers who were mostly at fault or breaking the law at the time of an accident — and reduce how much defendants can be forced to pay.