Today is a good day for New York drivers. In the newly enacted state budget, Governor Kathy Hochul delivered on her Affordability Agenda, which included securing historic reforms to combat insurance fraud and help lower auto insurance costs for millions of New Yorkers.
As Acting Commissioner of the New York State Department of Motor Vehicles (DMV), I want you to know why this matters.
Outdated and inconsistent laws have enabled people who cheat the system and stage crashes to steal undeserved insurance dollars, increasingly driving up premiums for the rest of us.
In just the past five years, staged crashes and related fraud have increased by 80 percent, while insurance costs rose nearly 50 percent over the past decade. These actions have contributed to a $4,000/year average premium in New York. That’s not only amongst the highest in the nation, but it’s also nearly $1,500 above the national average.
Staged crashes don’t just hurt our wallets; they also put New Yorker’s lives at risk. Innocent drivers and emergency responders get caught in the middle of these scams, which can lead to insurance policy cancellations, license or registration suspensions and costly fines.
The Governor’s reforms will make it easier to investigate and prosecute insurance fraud and pursue criminal penalties against organizers, including medical providers who sign off on phony diagnoses. Her reforms will minimize payouts for drivers who are uninsured, driving while impaired or committing a felony, as well as those who are found mostly at fault in a crash – so they don’t walk away with a jackpot payday, at ratepayers’ expense.
The new legislation will also prevent insurers from reaping excess profits, instead requiring savings be returned to policyholders, and from raising rates without State Department of Financial Services approval. And, insurers can no longer raise rates based on personal considerations, such as a consumer’s job, education or zip code.
As Acting Commissioner of DMV, I see my role as a guardian of drivers in New York. I commend and support these changes led by Governor Hochul. She has prioritized affordability and putting money into the pockets of New Yorkers and these groundbreaking insurance reforms deliver on those promises.
Drive Safe New York.
Christian Jackstadt was named Acting DMV Commissioner in April 2026. He previously served as Executive Deputy Commissioner since March 2022.
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