What's Driving High Auto Insurance Costs?
www.CT.moreover.com, Alexander MacDougall, April 19, 2026
ALBANY -- Gov. Kathy Hochul's push for changes to the laws governing auto insurance has contributed to the stalled state budget negotiations, as some lawmakers have scoffed at her assertion that the amendments would lower premiums.
Both sides have also accused one another of being beholden to lobbying interests, including the New York State Trial Lawyers Association, which opposes the governor's proposal and the car insurance companies that support it.
Beyond trading barbs over lobbying influence, a data analysis provides more insight on the key issues driving the debate: why New Yorkers' auto insurance premiums cost what they do; the prevalence of fraud, and just how often insurance companies pay out claims to customers.
Factors behind high costs
One thing that isn't in dispute is that New York ranks as one of the most expensive states for auto insurance. According to the Insurance Information Institute, a nonprofit trade association representing insurance providers, the state ranks fourth-worst in the nation for auto insurance affordability, behind Florida, Mississippi and Louisiana.
Insurance companies use a complex set of factors to determine auto insurance premiums in every state, including the frequency of accidents, vehicle repair costs, and the number of injury claims filed by drivers. Data from the institute show New York ranks near the bottom on a variety of factors, including cost of repairs, accident frequency and expenses incurred by insurers to process claims.
While the institute's data show that 30 more states have a higher relative tendency for injury claims, New York ranks third-highest in terms of the amount paid per claim, a factor that can drive up costs. The institute estimates the average personal auto injury claim in New York is $46,726, more than twice the U.S. average.
In 2024, the most recent year available, there were nearly 900,000 people in the state who were involved in a motor vehicle crash, according to the state Department of Motor Vehicles. That includes drivers as well as passengers, pedestrians and bicyclists who were involved in a crash. Of those involved, 33,000 people suffered injuries described as "moderate" or "severe," with an additional 118,000 described as sustaining minor injuries. Continue Article