Hard-Working New Yorkers Forced to Pay Nearly Double the National Average for Car Insurance — $4,031 a Year Compared to $2,400 Nationwide.
Every family expense – from rent to groceries – would be more manageable if Albany finally addressed the legal system failures driving up costs across New York.
NEW YORK—Citizens for Affordable Rates (CAR), a coalition of consumers, advocates, and organizations fighting for working families struggling with crushing insurance costs, today highlighted the Partnership for New York City’s distressful new report, “Excessive Litigation Is Driving New York’s Affordability Crisis,” which exposes how legal system abuse and rampant insurance fraud are forcing New York families to pay auto insurance premiums 52% higher than families anywhere else in America.
Working families across New York – from immigrant communities in Queens to Latino families in the Bronx, from African American households in Brooklyn to South Asian families on Long Island – are being forced to choose between keeping their cars and putting food on the table. At $4,031 a year for full coverage, that’s nearly $700 a month just for the privilege of driving to work.
The report’s despairing findings confirm what struggling working families have known for years – Albany’s inaction is directly hitting their wallets:
· No-fault insurance fraud: New York’s broken system accounts for up to 93% of all health care fraud reported to the state, with working families paying the price through skyrocketing premiums.
· Taxi and for-hire vehicle scams: NYC’s largest insurer reports that up to 70% of claims are fraudulent, threatening the livelihoods of thousands of immigrant drivers who depend on these jobs to support their families.
· Crushing litigation costs: New York families are forced to pay over $7,000 annually in hidden tort costs – 67% above the national average and the second-highest burden in the entire country.
“Every day, families who are one car repair away from financial disaster are also being crushed by exorbitant insurance costs,” said José Bayona, a spokesperson for CAR. “This isn’t about living in a big city or town – this is about Albany refusing to stand up to the fraud rings and broken legal system that are picking the pockets of working families every single month.”
While lawmakers debate in Albany, real families are making impossible choices. Parents are forced to pay insurance premiums that they sometimes can’t afford. Small business owners are pondering closing shops because they can’t absorb these crushing costs. Immigrant families who came here for opportunity are being pushed out by expenses that shouldn’t exist.
“Every month that Albany refuses to act, another thousand families fall behind on rent, small businesses close their doors, and the community loses hope,” Bayona added. “Our elected officials have the power right now to stop this fraud, slash these rates, and give working families across every community in New York the relief they desperately need and deserve.”
Download the full Partnership for New York City’s report by visiting this link.
About Citizens for Affordable Rates (CAR)
Citizens for Affordable Rates is a coalition of consumers, advocates, and organizations fighting for working families crushed by high insurance premiums across New York. Through relentless advocacy, community education, and the pursuit of real policy reform, CAR works to build a fair, transparent, and affordable insurance system that serves all New Yorkers, not just the wealthy and well-connected.
For more information about Citizens for Affordable Rates, please visit https://www.citizensforaffordablerates.com/
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