Skip to main content

New York State recently fined 37 auto insurers a total of $20.4 million for failing to report policy changes promptly. Regulators claim this action protects consumers, but insurers argue that the state’s outdated reporting system is the real issue. Historically, such fines often lead to higher premiums for insurance policyholders.

Why New York fined insurance companies $20 million

Under New York Insurance Law, insurers must report newly insured vehicles to the DMV’s Insurance Information & Enforcement System (IIES) within seven days and policy terminations within 30 days. These requirements help law enforcement identify uninsured vehicles, maintain accurate DMV records, and protect drivers in accidents. According to DFS Superintendent Adrienne Harris, “Accurate and timely reporting by insurers is critical to protecting New Yorkers on the road, ensuring compliance with state laws, and maintaining the integrity of our enforcement systems.”

Despite warnings in 2017 and meetings in 2018 and 2019, reporting delays persisted. This led to 37 consent orders and fines for major insurers, including:

  • State Farm: $2.5 million
  • Zurich: $2.2 million
  • Progressive: $2 million 
  • Chubb: $1.1 million
  • GEICO: $910,000
  • Allstate: $796,000
  • Farmers: $764,000

Insurance companies blame New York’s system, not themselves

Insurers acknowledge reporting delays but attribute them to New York’s antiquated system. A State Farm spokesperson stated, “We continue to work with the DMV, the legislature, and the governor’s office to reach an agreement on legislation authorizing an online verification system to replace the current, outdated system.”

The widespread nature of these fines suggests systemic issues. Industry advocates have long called for an online system to streamline reporting and reduce errors. While discussions continue, insurers must pay the fines and submit remediation plans to prevent future violations.

Will this actually help drivers?

Regulators emphasize accountability but haven’t promised lower premiums. Insurers argue that the state’s system hinders compliance. Without systemic improvements, drivers may not benefit and could face higher premiums as companies offset fines. As discussions about modernizing the reporting system continue, policyholders should stay informed about potential impacts on their insurance costs.

Best in News
Avatar photo
Staff Writer

Henry Cesari

Henry Cesari is a MotorBiscuit Staff Writer who brings his deep interest in vintage cars, trucks, and motorcycles to the site. Having restored his first classic car at just 16 years old, Henry has wrenched on everything from overland campers to Japanese motorcycles and even pre-war Bugattis. Henry is also an avid attendee at local car shows and genuinely enjoys connecting with fellow auto enthusiasts. Henry earned a Bachelor’s in Anthropology and English from the University of Vermont. While Henry is interested in vintage cars, he believes the golden age of cars is yet to come. He is confident journalists will play an important role in this revolution by exposing the industry as it is now and envisioning its possible future.