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Hochul’s Auto-Insurance Overhaul Gains Union Support, Faces Trial-Lawyer Resistance in Budget Fight

A new report puts plaintiffs’ legal‑ad spending in New York at $179 million in 2025, highlighting the stakes of negotiations over the governor’s anti‑fraud plan.

Overview

  • State lawmakers left the governor’s auto-insurance package out of their initial budget resolutions, and Hochul is pressing to add it in final talks.
  • The proposal would revive the Motor Vehicle Theft and Insurance Fraud Prevention Board, authorize criminal charges against staged‑accident organizers, and target illegal out‑of‑state registrations.
  • The plan would cap certain damages for drivers engaged in criminal behavior or violating financial‑responsibility laws, and Hochul says it could lower premiums by 15% to 20%.
  • Police and firefighter unions publicly endorsed the reforms, and the MTA estimates $48 million in annual savings if the changes are enacted.
  • Trial‑lawyer groups oppose the package and question consumer savings, while an ATRA analysis reports an 84% jump since 2023 to $179 million in plaintiffs’ ads as both sides fund aggressive campaigns.