Lawsuits, fraud and high bills in NY car insurance

To the Editor,

For the average New Yorker an annual car insurance bill is around $4,000, which is a shocking 60% percent higher than the national average. Why so expensive? Partially because our state's laws are an engraved invitation for lawsuit abuse and insurance fraud.

Under New York's "comparative negligence" system, even drivers who are ruled to be mostly at fault in an accident can reap big payouts. Minor injuries can snowball into big lawsuits thanks to vague legal definitions of terms like "serious injury."

These factors would make everyday claims more expensive on their own, but they also create a system easily exploited by bad actors. In 2023, the state recorded 1,729 staged accidents — crashes or other incidents prompted by dishonest drivers looking to cash in on an insurance payout. That is merely the tip of the iceberg: That same year, insurers reported over 38,000 cases of suspected fraud.

The loopholes that invite this fraud make it more expensive for insurers to do business in New York. This helps drive up insurance costs for all drivers, adding hundreds of dollars in premium costs to the average policy. That represents significant money to many families and small businesses.

Tackling fraud and abuse must be a priority. It simply is not fair to ask those doing the right thing to pay more so that others can exploit weak laws for a quick buck.

JUSTIN SCHWARTZ