New York auto insurers must obtain state approval before raising private passenger rates under a regulation proposed on September 9 by the Department of Financial Services, effective November 27, according to the Office of Governor Kathy Hochul. The rule implements the auto insurance overhaul in the state's FY 2027 budget. While the rate-review provision is pending, other parts of the overhaul are already in force, and they could significantly affect crash victims.
According to DFS guidance issued to insurers, the new claim rules apply to lawsuits filed on or after May 26, 2026. That means anyone injured in a crash on or after that date faces a different legal landscape. The changes eliminate the so-called 90/180 category, which previously allowed people with non-permanent injuries to sue if the injury kept them from their usual activities for 90 of the first 180 days after a crash. Now, claimants must meet one of the remaining serious injury categories. Under a new modified comparative fault rule, a claimant whose share of fault is greater than the other driver's cannot recover non-economic damages, such as pain and suffering. Additionally, 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.
"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 Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C. "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 implications for New York drivers are substantial. While the rate-approval requirement may eventually slow premium increases, the claim limits are already in effect and could reduce compensation for some crash victims. For those injured in Rockland County and surrounding areas, the change means that establishing fault and documenting injuries thoroughly is more critical than ever. 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.
As the state moves forward with its auto insurance overhaul, drivers should be aware that the new rules are already reshaping how crash claims are handled. The balance between rate regulation and claim limits will continue to evolve, but for now, the message is clear: the aftermath of a crash is no time to be unprepared.
