NY Auto Insurance Overhaul: Rate Hikes Need Approval, Injury Claims Restricted

New York drivers are facing a major shift in auto insurance rules as the state moves to control premiums while simultaneously tightening the rules for crash victims seeking damages. On September 9, the New York State Department of Financial Services proposed a regulation requiring auto insurers to obtain state approval before raising any private passenger rates, effective November 27, according to the Office of Governor Kathy Hochul. This rule implements the auto insurance overhaul included in the state’s FY 2027 budget, which also made significant changes to who can recover after a crash and how much. Those claim changes already apply to lawsuits filed on or after May 26, 2026, per DFS guidance issued to insurers.

Local firm Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C. is urging New York drivers to understand that while premium relief may take time to materialize, the new limits on injury claims are already in effect for Rockland County crashes. Their New City car accident lawyer represents drivers, passengers, and pedestrians injured on local roads, including the Palisades Interstate Parkway and the New York State Thruway. According to Barry S. Kantrowitz, a partner at the firm, “Until this spring, a driver found 60 percent at fault could still collect part of their pain and suffering damages, and a temporary injury that kept someone out of work for three months could support a lawsuit. Neither is true for new cases. The fault split and the medical record now decide whether a claim exists at all, which makes photos, witness names, and prompt treatment more important than ever.”

Three key changes crash victims should understand: first, the 90/180 category is gone, meaning non-permanent injuries that previously allowed lawsuits if they disrupted daily activities for 90 of the first 180 days no longer qualify; claimants must meet one of the remaining serious injury categories. Second, fault can now block pain and suffering damages under a modified comparative fault rule—if a claimant’s share of fault is greater than the other driver’s, they cannot recover non-economic damages. Third, some at-fault claimants face a $100,000 cap on non-economic damages if they were driving uninsured, convicted of impaired driving, or convicted of a felony committed while driving. The firm, which has represented injured people across New York and New Jersey for over five decades, continues to offer no-fee-unless-recovery representation through its personal injury practice. Those hurt in a crash can call (866) 971-0927 or send the firm a message for evening and weekend consultations.