One State Is Trying to Lower Insane Car Insurance Costs
Unfortunately, car insurance costs can ruin the fun of purchasing your dream ride. However, one state recognized that things are simply too expensive. The governor is making proposals to battle fraud and reduce auto insurance rates.
New York wants to lower car insurance rates
Have you ever looked at your car insurance bill and wondered why it’s so expensive? Well, plenty of other drivers certainly have. Now governor Kathy Hochul is trying to bring costs down.
She highlights proposals to reduce auto insurance rates and to combat fraudulent claims across the states. Plus, Hochul wants to limit damages paid out to bad actors in traffic to ensure customers are prioritized instead of companies.
Hochul explains. “For most drivers, insurance isn’t a luxury; it’s a necessity, especially in Long Island, where people rely on cars to get to work, school, and go grocery shopping.”
According to the Governor, New York faces the highest car insurance rates in the nation. People pay out $4,000 annually, which is $1,500 more than the national average.
Stage accidents with suspected motor vehicle fraud have increased by 80% since 2020. So it’s time to support police ability to investigate and prosecute insurance fraud in the state. Also, prosecutors should seek penalties against people for organizing staged accidents.
Partnering with district attorneys can help build cases to end organized fraud that is increasing costs. Plus, it’s time to tackle medical providers who participate in fraud via signing off on fake diagnoses that result in massive pay outs.
Last but not least, when New York drivers illegally register their cars in other states, expenses increase for law-abiding citizens. Plus, the state could join 28 others in adopting a rule that changes standards for defendants less than 50% at fault to lower premiums.
