New York's Civil Justice System Drives $4,000 Average Annual Auto Insurance Premium

New York drivers pay an average annual auto insurance premium of approximately $4,000, which is roughly $1,500 above the national average. These costs are 65% higher for minimum coverage and 15% higher for full coverage compared to other states.

These premiums are driven by a combination of fraud, litigation, legal loopholes, and enforcement gaps, including staged crashes. Insurance fraud and staged crashes alone inflate premiums by an average of $300 per year.

This pricing is a result of the civil justice system. New York households spend an estimated $7,027 annually on tort liability costs, the highest in the country. The state's economy loses an estimated $22 billion annually due to excessive tort costs and lawsuit abuse.

Governor Kathy Hochul has proposed legislation to tackle fraudulent claims and crack down on runaway litigation to lower premiums. However, the state Senate and Assembly have omitted the proposal from their spending agenda, leaving the current high-cost status quo remains.