A statewide coalition of Chaveirim volunteer organizations is voicing support for Governor Kathy Hochul’s proposal to reduce auto insurance premiums in New York, saying the reforms could provide much-needed relief for both nonprofit emergency services and everyday drivers.

In a letter dated March 11 to Assembly Speaker Carl Heastie and Senate Majority Leader Andrea Stewart-Cousins, the New York State Chaveirim Coalition endorsed the governor’s “Money in Your Pockets” initiative — a sweeping effort aimed at lowering insurance costs in a state where premiums are among the highest in the nation.

The coalition represents Chaveirim groups from communities across New York, including Queens & Great Neck, Five Towns & Far Rockaway, Crown Heights, Seagate, Brooklyn & Catskills, Orange County, Fleischmanns, Rockland, and Staten Island.

In the letter, the coalition warned that rapidly rising auto insurance costs are placing a growing strain on volunteer organizations that rely on fleets of vehicles to assist motorists and respond to emergencies.

Chaveirim organizations collectively operate more than 100 service vehicles statewide, providing roadside assistance, emergency help, and other critical services around the clock.

“Rising auto insurance premiums have created a substantial and growing financial burden on our organizations, limiting our ability to dedicate scarce nonprofit resources directly toward lifesaving and community-based services,” the coalition wrote.

The group noted that the crisis extends far beyond nonprofit organizations, saying it regularly hears from the thousands of motorists it assists about the financial hardship caused by high insurance costs.

“For many New Yorkers, vehicle ownership is not a luxury but a necessity for work, school, and daily responsibilities,” the coalition wrote. “When insurance premiums become unaffordable, it creates real hardship for families and working individuals across the state.”

Governor Hochul’s proposal aims to tackle what state officials say are key drivers behind high insurance premiums: widespread fraud and costly litigation.

New York currently ranks among the leading states for staged auto accidents, which often involve organized fraud rings designed to generate fraudulent insurance claims.

Under Hochul’s plan, prosecutors would be given new authority to target the organizers of staged crashes, rather than just the drivers involved. The proposal also strengthens enforcement by expanding resources for the State Police and reinvigorating the state’s Motor Vehicle Theft and Insurance Fraud Prevention Board.

The governor is also proposing to give insurance companies more time to investigate suspected fraud before being required to pay claims, increasing the current 30-day limit that insurers say often forces them to pay fraudulent claims before investigations are complete.

Another major part of the proposal focuses on changes to liability rules that critics say encourage excessive lawsuits and large payouts.

Currently, New York follows a “pure comparative liability” system that allows drivers who were mostly at fault for an accident to still recover damages. Hochul is proposing a shift to a “modified comparative liability” standard that would prevent drivers who are more than 50 percent responsible for an accident from recovering non-economic damages such as pain and suffering.

Her plan would also tighten the state’s “serious injury” standard — which critics say currently allows minor injuries to generate large lawsuits — by establishing clearer medical criteria.

Additional reforms would cap certain payouts for drivers who were committing crimes at the time of an accident, such as driving while intoxicated or without insurance.

The governor’s plan also includes several consumer-focused provisions.

The Department of Financial Services has been directed to re-examine the state’s “Excess Profit Law,” which requires insurance companies to return profits above a certain threshold to policyholders.

The proposal would also require insurers to offer discounts to drivers who participate in technology-based safe driving programs and increase transparency by requiring clearer explanations when insurance companies raise rates.

Experts estimate the reforms could save New York drivers between $200 and $300 per vehicle each year, though the plan must still be negotiated with the Legislature as part of the 2026 Executive Budget.

In their letter, Chaveirim leaders commended Hochul for recognizing the seriousness of the problem and working to address it.

“We commend Governor Hochul for recognizing this challenge and for taking steps to address the rising cost of auto insurance,” the coalition wrote. “Efforts to bring relief to New Yorkers while maintaining appropriate protections for motorists are both timely and necessary.”

(YWN World Headquarters – NYC)