New York auto insurers will soon need state approval before raising private passenger rates, but drivers injured in crashes are already facing tighter restrictions on lawsuits under a sweeping overhaul enacted in the state's FY 2027 budget.
On September 9, the New York State Department of Financial Services proposed a regulation requiring auto insurers to obtain state approval before increasing private passenger rates, effective November 27, according to the Office of Governor Kathy Hochul. The rule implements the auto insurance overhaul included in the budget, which also changed who can recover after a crash and how much. Those claim changes already apply to lawsuits filed on or after May 26, 2026, per DFS guidance issued to insurers.
The rate regulation could provide relief to drivers if insurers are forced to justify increases, but the claim changes may have a more immediate impact on accident victims. Three key changes affect crash victims: the 90/180 category is gone, meaning non-permanent injuries that kept someone from usual activities for 90 of the first 180 days no longer support a lawsuit; fault can now block pain and suffering damages under a modified comparative fault rule, so a claimant whose share of fault is greater than the other driver's cannot recover non-economic damages; and some at-fault claimants face a $100,000 cap on non-economic damages if they were driving uninsured, convicted of impaired driving, or convicted of a felony committed while driving.
Local firm Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C. urges New York drivers to understand that while premium relief may take time to reach drivers, the new limits on injury claims are already in effect for Rockland County crashes. The firm's New City car accident lawyer represents drivers, passengers, and pedestrians injured on local roads, including the Palisades Interstate Parkway and the New York State Thruway.
"Until this spring, a driver found 60 percent at fault could still collect part of their pain and suffering damages, and a temporary injury that kept someone out of work for three months could support a lawsuit," said Barry S. Kantrowitz, a partner at the firm. "Neither is true for new cases. The fault split and the medical record now decide whether a claim exists at all, which makes photos, witness names, and prompt treatment more important than ever."
The changes create a dual-track system: regulators will review rate filings to protect consumers from unjustified premium hikes, while courts will apply stricter standards to injury claims. For drivers, the new fault rules mean that even a minor mistake behind the wheel could bar recovery for pain and suffering if they are found more at fault than the other party. The $100,000 cap adds another layer of risk for those driving without insurance or with certain convictions.
As the November 27 effective date for the rate approval process approaches, insurers may adjust their filing strategies, potentially slowing rate increases but also possibly leading to tighter underwriting. For accident victims, the message is clear: evidence and immediate medical care are critical. The firm offers evening and weekend consultations and handles personal injury cases on a contingency fee basis, with no fee unless compensation is recovered. Those injured in a crash can send the firm a message to discuss their situation.
