New York's auto insurance landscape is undergoing a major transformation, with two key changes that will affect drivers, insurers, and crash victims. First, the Department of Financial Services has proposed a regulation requiring auto insurers to obtain state approval before raising private passenger rates, effective November 27. This move, announced by the Office of Governor Kathy Hochul, implements a provision in the state's FY 2027 budget aimed at curbing premium increases. Second, and already in effect for lawsuits filed on or after May 26, 2026, are significant restrictions on injury claims, as detailed in DFS guidance issued to insurers.
These claim changes are already impacting crash victims in Rockland County and across New York. Local firm Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C. is urging drivers to understand that while premium relief may take time, the new limits on injury claims are immediate. 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.
According to Barry S. Kantrowitz, a partner at the firm, the changes are stark. "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. "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 overhaul introduces three critical changes. First, the 90/180 category is eliminated. Previously, individuals with a non-permanent injury could sue if it prevented them from performing their usual activities for 90 of the first 180 days after a crash. That option no longer exists, forcing claimants to meet one of the remaining serious injury thresholds. Second, under a new modified comparative fault rule, a claimant whose share of fault exceeds the other driver's cannot recover non-economic damages such as pain and suffering. Third, certain 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.
These changes have profound implications for crash victims. The elimination of the 90/180 category means that even injuries that disrupt daily life for months may not qualify for compensation unless they meet stricter criteria. The comparative fault rule introduces a harsh cutoff: being 51 percent at fault could bar recovery entirely for pain and suffering. The cap on at-fault claimants adds another layer of complexity, particularly for those with prior convictions. For drivers, the rate approval requirement may eventually lead to more predictable premiums, but the immediate effect is on the legal landscape for injury claims.
Legal experts emphasize that evidence gathering is now more crucial than ever. Prompt medical treatment, documentation of fault, and witness statements can make or break a claim. The firm's personal injury practice advises victims to seek legal guidance early to navigate the new rules. As the state moves forward with this overhaul, the balance between insurance affordability and victim rights remains a contentious issue, with real consequences for New Yorkers injured on the road.
