The New York State Department of Financial Services published an update on Governor Kathy Hochul’s proposals aimed at lowering auto insurance rates in New York State by intensifying enforcement against staged crashes and other fraud and by changing rules that affect damages and claims outcomes. The package would direct DFS, the Department of Motor Vehicles, New York State Police and the Division of Criminal Justice Services to take a more proactive, coordinated approach, supported by dedicated resources and staff focused on auto insurance fraud. The proposals cite rising fraud indicators, including 1,729 staged crashes in 2023 and 43,811 incidents of suspected motor vehicle insurance fraud reported to the DFS Insurance Frauds Bureau in 2025, an 80 percent increase over five years. Measures include reinvigorating the Motor Vehicle Theft and Insurance Fraud Prevention Board, legislation to allow prosecutors to pursue criminal penalties against organizers of staged accidents, strengthened collaboration with District Attorneys, and additional focus on medical providers alleged to facilitate fraud through false diagnoses. On insurer anti-fraud capabilities, the Governor proposes extending the current 30-day window for insurers to identify and report fraud and reducing barriers to alleging fraud in court, while preserving consumer protections. The package also proposes capping non-economic damages for drivers engaged in criminal behavior at the time of an incident and limiting damages where a driver is mostly at fault, alongside tightening New York’s serious injury threshold under its no-fault framework. Separately, the update references FY27 Budget proposals for agriculture, including USD 30 million in direct tariff relief for farmers, USD 15 million in grants to dairy farmers to upgrade technology, and a five-year extension of refundable investment tax credits for farm investments.
New York State Department of Financial Services 2026-04-21
New York State Department of Financial Services outlines Governor Hochul proposals to expand auto insurance fraud enforcement and limit certain claim payouts
The New York State Department of Financial Services reported on Governor Kathy Hochul’s proposals to lower auto insurance rates by intensifying enforcement against staged crashes and other fraud, enhancing inter-agency coordination, and tightening rules on damages and New York’s no-fault serious injury threshold. Measures include new criminal penalties for organizers of staged accidents, strengthened collaboration with prosecutors, extended timelines for insurers to pursue fraud, and targeted scrutiny of medical providers alleged to facilitate fraud.