Hochul details plans to crack down on auto insurance fraud - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Property and Casualty News
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Property and Casualty News RSS Get our newsletter
Order Prints
January 23, 2026 Property and Casualty News
Share
Share
Post
Email

Hochul details plans to crack down on auto insurance fraud

By Chris Wade | The Center Square contributorThe Center Square: New York

(The Center Square) — New York Gov. Kathy Hochul is pledging to crack down on auto insurance fraud, including "runaway litigation" and staged accidents, that state officials say drive up rates for drivers.

On Thursday, Hochul detailed her plans to beef up state regulations, ramp up investigations of alleged insurance fraud, and target physicians who provide bogus diagnoses for victims of staged crashes, who are often part of organized fraud rings.

"These common-sense proposals will not only increase auto insurance transparency for New Yorkers, but they will also put money back into people’s pockets, especially during a time when the cost of living is just too high," Hochul said in remarks.

Hochul's plan, which she first highlighted in her state of the state address Tuesday, calls for reviving the state’s Motor Vehicle Theft and Insurance Fraud Prevention Board and empowering it to investigate and prosecute insurance fraud, and working with district attorneys "to help build cases that put an end to the organized fraud that’s robbing New Yorkers via elevated insurance rates."

The governor also said she plans to take action against New York drivers who illegally register their vehicles in other states, which she said artificially decreases their coverage and raises costs for law-abiding New York drivers.

She also plans to file legislation to allow prosecutors to seek criminal penalties against individuals responsible for organizing a staged accident, "not just the individual behind the wheel." That includes physicians and other health care workers who sign off on phony medical reports that result in enormous payouts.

Hochul's proposals are facing early pushbacks from trial lawyers who've panned her plan as a 'victim tax' that would let insurance carriers off the hook and shift more costs to the state's taxpayers.

But Tom Stebbins, executive director of the Lawsuit Reform Alliance of New York, praised Hochul for taking steps toward "fixing New York’s civil justice system and ensuring our liability laws are not exploited by bad actors."

"By tackling rampant fraud and reining in the perverse incentives built into New York's existing laws, her proposals will help make insurance more affordable and our roads safer," he said in a statement. "They'll also ensure the sophisticated actors who orchestrate these schemes are brought to justice and not merely the vulnerable people drawn into them."

Stebbins said the auto insurance fraud often involves "sophisticated" crime rings that "recruit immigrants and those facing homelessness as the drivers that cause these staged crashes."

"Unnecessary medical procedures and surgeries meant to increase the value of the claim follow," he said. "Fraud and lawsuit abuse are not victimless crimes."

New Yorkers pay some of the highest car insurance rates in the nation — totaling just over $4,000 annually on average, nearly $1,500 above the national average, according to state and federal data.

Government watchdogs and industry groups say insurance rates are driven up by a combination of fraud, litigation, legal loopholes, and enforcement gaps, with staged crashes and associated insurance fraud, inflating premiums by as much as $300 per year on average.

In 2023, there were 1,729 staged crashes in New York, which ranks second highest in the nation for incidents of staged fraud, according to the latest data from the New York State Department of Financial Services. Insurance carriers reported 38,270 incidents of suspected motor vehicle insurance fraud during that year, the agency said.

Older

NY car insurance costs too much. Here's Hochul plan to reduce premiums

Newer

Health insurance enrollment declines in Colorado, but not as much as feared

Advisor News

  • Benefit Costs Squeeze Schools, Driving Cuts, Tax Hikes And Difficult Tradeoffs
  • Why client insurance needs could change even if their life doesn’t
  • Most Gen Z investors think less than a year ahead when making financial decisions
  • IRI pitches retirement agenda to Jeffries as democrats shape affordability platform
  • Help child-free clients plan for their later years
More Advisor News

Annuity News

  • Guidance, bulletin or reg? NAIC debates form of annuity illustration update
  • Nationwide adds mutual fund-linked strategy to New Heights Select FIA
  • NUNN INTRODUCES BILL TO CUT RED TAPE, GIVE IOWANS CLEARER INSURANCE INFORMATION
  • NAIC working group pressed to accelerate annuity illustration overhaul
  • State Auditor James Brown Kicks Off Life Insurance Awareness Month With Policy Locator Tool
More Annuity News

Health/Employee Benefits News

  • How Lahn, Sand see future for Medicaid
  • Regulators claim limited power to control health insurance rate increases
  • Burcum: The fight for fertility coverage needs a governor in its corner
  • A cancer survivor hoped to work — then she lost her Medicaid disability coverage
  • How Iowa’s candidates for governor see the future of Medicaid
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • AM Best Revises Outlooks to Negative for Kemper Corporation, Its Affiliates and Subsidiaries
  • WARREN PROBES RISE OF PRIVATE INVESTMENT FIRMS IN INSURANCE SECTOR FOLLOWING MARK WALTER SCANDAL
  • AM Best Affirms Credit Ratings of Erie Insurance Group’s Members and Erie Family Life Insurance Company
  • MIB reports double-digit life insurance app activity in record August
  • 42% of consumers are confused and unconvinced by life insurance
Sponsor
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Classic Car Insurer OpenRoad Insurance Expands to 40 U.S. States in Two Years
  • How Aspire General Turned an Early Technology Bet Into Claims Automation at Scale with Kyber
  • Adjusto launches AI-Native contents claims services powered by its technology platform
  • URL Insurance Group Celebrates 40 Years of Service, Growth, and Industry Leadership
  • MassMutual Ascend Surpasses $2 Billion in Lifetime Advisory Annuity Sales, Reflecting Continued Momentum in RIA Channel
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.