Governor Hochul Issues New Guidance to Implement Reforms Aimed at Lowering Auto Insurance Premiums for New Yorkers
www.DFS.NY.Gov, July 01, 2026
Governor Kathy Hochul today announced that the New York State Department of Financial Services (DFS) has issued new guidance to insurers, implementing reforms enacted in the Fiscal Year 2027 Budget to help bring down the cost of auto insurance rates and combat fraudulent claims across New York State.
The enacted budget delivers sweeping reforms to address key factors driving up auto insurance premiums, including insurance fraud and excessive litigation costs. The guidance issued by DFS is an important step to translate these reforms into meaningful cost savings for New Yorkers.
“Since taking office, I have been committed to making New York safer and more affordable, and that includes driving down the cost of auto insurance,” Governor Hochul said. “For most New Yorkers, driving is a necessity to get to school, work or run daily errands and it’s imperative that we ensure these savings are passed down to hard working families.”
New York State Department of Financial Services Acting Superintendent Kaitlin Asrow said, “Today's guidance makes clear the Department’s expectations that insurers include expected savings from Governor Hochul’s reforms in any pending and future rate applications. The Department is engaging in a collaborative approach with all stakeholders to lower costs for New Yorkers.”
State Senator Jamaal T. Bailey said, "For years New York families have been feeling the financial burden of high automobile insurance costs. The recently enacted automobile insurance reforms seek to address these rising costs, while at the same time ensuring that innocent New Yorkers who are legitimately injured can still receive the compensation they deserve. I applaud Governor Hochul for her ongoing commitment to making sure these reforms are properly and expeditiously implemented, as well as Majority Leader Andrea Stewart-Cousins, Speaker Heastie, my colleagues in government and all the dedicated staff members who worked so hard on this endeavor." Continue Press Release