New York wants to make it harder for car insurance companies to jack up your rates without the state signing off first. Governor Kathy Hochul announced a proposed regulation, drafted by the New York State Department of Financial Services, that would require auto insurers to get prior approval before raising rates on private passenger policies, Noticia reported.
That changes the current system. Right now, insurers can push through up to two rate hikes without asking the state first, as long as the increases add up to no more than 5 percent, according to Noticia. The proposed rule would close that lane and force companies to clear an increase with regulators before it hits your bill.
The measure is folded into the state budget reforms for fiscal year 2027, Noticia reported. The stated goal is to boost transparency and bring down policy costs by going after the things insurers blame for rising premiums, including fraud and what the outlet described as excessive litigation expenses.
It cuts the other direction too. Under the proposal, companies would have to tell customers when their rates are going down and explain the reasons behind any change, according to Noticia. In other words, insurers would owe drivers an actual explanation, not just a new number.
There is a public comment period of 60 days, Noticia reported, and the law and regulation would take effect November 27, 2026.
The announcement was one of several items Noticia rounded up in a September 14 news brief. The outlet credited Citizens for Affordable Rates for the accompanying image of Hochul’s rollout.
Featured image: Marc A. Hermann / Metropolitan Transportation Auth