Statement from NYSAC, NYCOM and NYAOT on Proposed Automobile Insurance Reforms

The New York State Association of Counties, the New York Association of Towns, and the New York Conference of Mayors jointly support Governor Kathy Hochul's comprehensive automobile insurance reform proposals in the State Fiscal Year 2026-27 Executive Budget. These reforms address the automobile insurance costs that affect every municipality, taxpayer, and resident across New York State.

New Yorkers pay among the highest automobile insurance premiums in the nation. High costs are driven by fraud, litigation, and outdated legal standards that force municipalities to pay disproportionate settlements for accidents they did not cause. These rates impact all of our respective members, their families and all of our residents. 

These rates also impact our taxpayers because counties and municipalities—particularly due to their large number of cars, buses and trucks—have become targets for settlements even when other parties were primarily at fault.

Local governments with vehicle fleets will realize proportional savings through reduced insurance premiums, lower settlement costs, decreased litigation expenses, and more predictable insurance budgets. Statewide, transit agencies outside the MTA region are projected to save as much as $25 million annually under the Governor's reforms. Every dollar saved reduces pressure on property taxes and can be reinvested in public safety, infrastructure, and health and human services.

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