Hochul's Car Insurance Plan Blows Fraud Way Out Of Proportion: Stats - Streetsblog Empire State

"District attorneys in and around New York City have prosecuted only a handful of drivers for staged crashes, including DAs in counties where insurance costs are among the highest in the state - a finding that undermines Hochul's argument that fraud is leading to what she calls New York's "high" insurance costs."

"Of the 43,811 allegations of fraud lodged by multi-billion-insurance companies, the state opened just 243 investigations and made 169 arrests. A spokesperson for the agency declined to say how many convictions state authorities notched - but even if every single arrest resulted in a conviction, the state's closure rate on insurance fraud is less than 0.4 percent."

"The agency said 70 percent of the "suspected" fraud cases were related to no-fault insurance - an important footnote because Hochul's proposed reforms make no change to the state's no-fault insurance, which provides $50,000 in coverage for people involved in crashes, no matter who is at fault."

Governor Hochul's push to lower auto insurance premiums through Big Tech-backed reforms centers on claims that rampant insurance fraud drives up rates. However, investigation reveals minimal fraud prosecution activity. District attorneys in New York City and surrounding counties have prosecuted only a handful of staged crash cases, even in counties with the highest insurance costs. While insurers reported 43,811 suspected fraud cases in 2025, state authorities opened just 243 investigations and made 169 arrests, resulting in a closure rate below 0.4 percent. Notably, 70 percent of suspected fraud involved no-fault insurance claims, yet Hochul's proposed reforms make no changes to no-fault coverage. Experts indicate insurers frequently allege fraud to avoid payouts.

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