New York’s auto insurance reform debate is escalating as Governor Kathy Hochul presses for legislation aimed at curbing litigation linked to vehicle accidents.
The proposal has triggered resistance from trial lawyer organizations with strong lobbying presence in Albany.
According to a report by the Lawsuit Reform Alliance of New York, trial lawyers spent more than $1mn on political campaign contributions and roughly $1.579mn on lobbying activities during the past year.
The New York State Trial Lawyers Association allocated significant funds to lobbyists connected to key lawmakers.
- Lobbyist Patrick Jenkins received $528,000 through his firm Patrick Jenkins & Associates. Ken Ridett of Ridett Associates received $526,000.
- Another advocacy group, the New York State Academy of Trial Lawyers, paid lobbyist Evan Stavisky $139,500. Stavisky is the son of Toby Stavisky.
Campaign funding also targeted legislative leadership (see US Auto Insurance Rates by States).
The trial lawyers’ political action committee distributed $168,600 to Assembly campaign committees and $189,600 to Senate campaign committees.
It also contributed $25,000 each to political committees linked to Assembly Speaker Carl Heastie and Senate Majority Leader Andrea Stewart-Cousins.
Hochul’s reform plan seeks to limit certain damage claims in auto accident lawsuits. The proposal includes a cap on pain-and-suffering damages for drivers responsible for crashes while committing crimes or violating traffic laws.
The legislation also targets uninsured motorists who break financial responsibility rules, drivers convicted of impaired driving, and individuals fleeing accident scenes.
Another provision would strengthen criminal penalties against organizers of staged accidents, expanding prosecution beyond the driver involved in the crash.
The governor included the reform package within her executive budget proposal. The Democratic-controlled Assembly and Senate did not include the measures in their fiscal plans released earlier.
Trial lawyer organizations argue the proposal would restrict legal rights of injured motorists and shield insurers from liability.
Andrew Finkelstein, president of the New York State Trial Lawyers Association, said insurers often retain savings rather than lowering premiums when litigation restrictions are introduced.
Hochul maintains the reform could reduce auto insurance premiums for New York drivers by 15-20%. Drivers in the state currently pay about $4,000 annually for car insurance, roughly $1,500 above the national average.
Insurance companies and industry organizations have also supported the proposal.
Contributions to Hochul’s campaign and the state Democratic committee have come from firms including New York Life, Travelers, Allstate, Zurich Insurance Group, Chubb, Cigna, New York Insurance Association, MetLife, American Property Casualty Insurance Association, and Nationwide.
Another advocacy organization, Citizens for Affordable Rates, supported by companies including Uber, has reportedly spent around $8 mn promoting the reform campaign through digital advertising.
The policy debate reflects a wider dispute over litigation costs and insurance pricing in New York’s auto insurance market.
New York State is moving to rein in auto insurance costs, leaning on fraud enforcement and tighter payout rules aimed at drivers who abuse the system.
Kathy Hochul, the 57th governor of New York, said the state plans multiple actions to shift the balance toward consumers rather than insurers.
She pointed to staged accidents and inflated claims as a direct contributor to premium pressure across the state.
According to the governor, New York drivers pay some of the highest auto insurance rates in the country. Average annual premiums sit near $4,000, roughly $1,500 above the national average.
