While Governor Kathy Hochul and legislative leaders differ on whether an overall budget deal has been reached, they appear to have reached a compromise on auto insurance reform. The issue was a key policy priority for Hochul.
The Governor can count a lot of wins in the auto insurance deal, including limits on payouts to those found to be at fault in crashes and tightening the serious injury threshold. The deal also prohibits insurance companies from setting rates based on education level or zip code and requires regulatory approval of all rate increases.
Hochul said the changes will lead to lower costs for New Yorkers, who pay some of the highest rates in the country.
“ We're also putting a cap on the excess profits insurance companies bring in, and making sure that New Yorkers benefit from the savings our reforms create and not the insurance companies,” said Hochul.
Assemblymember Jen Lunsford of Monroe County said she fought to get those insurance provisions included in the deal and agrees they should drive down costs. But she is still concerned that other aspects of the plan could harm crash victims. She shared an example, "where someone is 51% at fault versus 49% at fault. Even if the person's 51% at fault has a substantial life altering injury, they get nothing, and the other person who broke their clavicle gets something. That just seems patently unfair."
The auto insurance issue drew heavy lobbying on both sides: from the insurance companies and Uber, who said the changes would lower rates. Meanwhile, the New York Trial Lawyers Association opposed many of the changes.