GOVERNOR HOCHUL ANNOUNCES NEW REGULATION PROPOSED BY THE DEPARTMENT OF FINANCIAL SERVICES INCREASING TRANSPARENCY FOR POLICYHOLDERS IN THE AUTO INSURANCE MARKET

The following information was released by the New York State Department of Financial Services (DFS):

Regulations Implement Reforms Aimed at Lowering Auto Insurance Premiums for New Yorkers

Reforms Build on Governor's Ongoing Efforts to Make New York State More Affordable and Put Money Back into the Pockets of Hardworking New Yorkers

September 9, 2026

Governor Kathy Hochul today announced that the New York State Department of Financial Services (DFS) has proposed a regulation amending the process for filing private passenger auto insurance rates, implementing reforms enacted in the Fiscal Year 2027 Budget to help bring down the cost of auto insurance in New York State. The regulation will increase transparency by requiring insurers to receive prior approval for any private passenger automobile rate increase requests. The enacted FY27 Budget delivers sweeping reforms to address key factors driving up auto insurance premiums, including insurance fraud and excessive litigation costs. The proposed regulation issued by DFS is an important step in enacting these reforms.

"New Yorkers deserve a transparent, fair and accountable auto insurance market that puts customers first," Governor Hochul said. "This regulation delivers on our commitment to strengthen consumer protections and give policyholders greater confidence that insurance companies are being held to clear standards. As we continue to work to lower costs, combat fraud and make New York State more affordable, we are helping families and businesses make informed decisions and ensuring insurers remain accountable to their customers."

New York State Department of Financial Services Acting Superintendent Kaitlin Asrow said, "This regulation strengthens transparency for New York policyholders by ensuring that any increase in private passenger auto rates is subject to comprehensive and independent review."

Assemblymember David Weprin said, "New Yorkers deserve relief from rising auto insurance costs, as well as greater transparency and accountability when rates change. Requiring insurers to receive prior approval before raising private passenger auto rates is an important consumer protection and a key part of the reforms we enacted in this year's State Budget. I commend Governor Hochul and the Department of Financial Services for moving swiftly to implement these measures, and I look forward to continuing our work to combat insurance fraud, reduce unnecessary costs and make auto insurance more affordable for New York drivers."

The regulation published today implements new regulatory safeguards and transparency measures for drivers in New York. Currently, insurers may implement no more than two overall average private passenger auto rate increases without the Department's prior approval if the cumulative effect of the rate increases are within 5%. The proposed regulation requires insurers to seek express prior approval from DFS before any upward rate changes. Additionally, the regulation ensures insurers notify policyholders about rate decreases taken without prior approval resulting from Fiscal Year 2027 budget reforms and explain why the changes are happening.

This announcement builds on New York's efforts to address property/casualty insurance costs, including guidance on rate filings and mandatory premium discounts, specialized auto insurance fraud prevention training, and DFS's Insurance Discounts and Savings webpage.

A 60-day public comment period will commence today upon the proposed regulation's publication in the State Register. The law and regulation will take effect on November 27, 2026.