The recently passed New York state budget includes a slate of auto insurance reforms championed by Gov. Kathy Hochul.
The reforms target fraud as well as insurance company practices and consumer protections.
The changes are intended to reduce auto insurance costs.
News coverage has primarily focused on how the new laws will address fraud rings, and criminals.
But law-abiding ratepayers will also see changes.
According to Tom Stebbins, executive director of the Lawsuit Reform Alliance of New York State, ratepayers may see a drop in their car insurance costs of between $200 and $300 annually.
“One thing that we’ve seen in both Florida and Georgia that have undergone these reforms is a huge amount of money that has gone back to ratepayers,” Stebbins told Capital Tonight. “In Florida, we’ve seen over a billion dollars go back to around 2.7 million drivers. It’s a massive amount, and that’s just the on the personal lines.”
Stebbins is referring to personal automotive insurance as opposed to commercial insurance which should also see a rate cut under the new reforms.
While New York remains a “No Fault” state, according to Stebbins, if you’re not at fault, you still have all the options available to you, including the right to sue the other driver.
“If you were the one negligent, that’s where you have that (payout) cap, and that’s the critical change that has happened,” Stebbins said.
