New York Drivers Face 15% Increase in Auto Insurance Due to New Law
New York drivers are seeing a big jump in their auto insurance bills due to a new law aimed at changing the state’s insurance system. Signed into law by Governor Kathy Hochul last month, the Comprehensive Auto Insurance Reform Act introduces new rules that have led to higher insurance costs.
This law increases the amount of coverage drivers must have. Before, drivers needed to have at least $25,000 coverage per person and $50,000 per accident. The new law raises these limits to $50,000 per person and $100,000 per accident. While this is meant to provide better protection in serious accidents, it has also caused insurance premiums to go up.
The new law also imposes stricter rules on insurance companies, requiring more paperwork and oversight. These changes have increased costs for insurers, which they are passing on to drivers in the form of higher premiums. On average, insurance rates have gone up by 15% since the law was implemented.
Experts warn that this law could hit low- and middle-income drivers the hardest, adding more financial stress to those already struggling with high living costs. Some drivers have seen their premiums increase by $200 to $300 a year.
Consumer advocates are concerned about the impact on everyday New Yorkers. Emma Rodriguez from the New York Consumers Association says, “The intention behind the law is good, but the higher premiums are a serious burden. We hope lawmakers will find ways to reduce these costs.”
In response to these concerns, some lawmakers are considering changes to the law to lower coverage limits or provide financial help for low-income drivers.
For now, New York drivers should shop around for the best insurance rates and look for discounts or programs to help manage the higher costs.
