New York State has moved forward with a major auto insurance overhaul that will change how premiums are regulated and how crash victims can seek compensation. On September 9, the Department of Financial Services proposed a regulation requiring auto insurers to obtain state approval before raising private passenger rates, effective November 27, as announced by the Office of Governor Kathy Hochul. The rule implements provisions in the state's FY 2027 budget, which also altered the rules for injury claims after a crash.
While the rate approval requirement is new, the claim changes are already in effect for lawsuits filed on or after May 26, 2026, according to DFS guidance issued to insurers. These changes have significant implications for drivers, passengers, and pedestrians injured on New York roads.
Local firm Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C. is urging New York drivers to understand that while premium relief may take time to materialize, the new limits on injury claims are already affecting Rockland County crashes. The firm's New City car accident lawyer represents victims injured on local roads, including the Palisades Interstate Parkway and the New York State Thruway.
Three key changes to the state's no-fault insurance system are particularly important. First, the 90/180 category for serious injury has been eliminated. Previously, a person 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, meaning claimants must now meet one of the remaining serious injury thresholds.
Second, 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. This marks a departure from prior law, where a driver found 60 percent at fault could still collect a portion of such damages.
Third, some at-fault claimants face a $100,000 cap on non-economic damages. This cap applies to those who 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 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 implications for crash victims are profound. The elimination of the 90/180 category means that many individuals with injuries that disrupt their lives for months but are not permanent will no longer have a path to compensation for pain and suffering. The comparative fault rule introduces a harsh cutoff: if a claimant is found even one percent more at fault than the other driver, they recover nothing for non-economic losses. And the $100,000 cap for certain at-fault claimants adds another layer of limitation.
These changes place greater emphasis on the immediate aftermath of a crash. Evidence such as photographs, witness statements, and prompt medical documentation becomes critical to establishing the nature and severity of injuries, as well as to counter any allegations of fault. Victims must now navigate a more restrictive legal environment where the details of the accident and the medical record can determine whether they receive any compensation at all.
As the state moves toward implementing the rate approval process, which could eventually lead to slower premium increases, the claim changes are already in force, creating a dual reality for New York drivers. For those injured in crashes, understanding these new rules is essential. The firm's personal injury practice continues to assist clients in navigating these complexities, and those seeking guidance can send the firm a message.
