New York Auto Insurance Reform 2026: What Governor Hochul's Proposals Mean for Injured Victims

If you were hurt in a car accident in New York, you may have the right to sue the driver who hit you for pain and suffering. That right could soon change. Governor Kathy Hochul has been pushing a package of auto insurance reforms that would rewrite the rules for injury victims across New York State. As of April 2026, the fight is happening right now in Albany — and the outcome will affect every New Yorker who gets hurt on the road.

What Is Happening Right Now in Albany?

On January 22, 2026, Governor Hochul unveiled an eight-part proposal aimed at reducing auto insurance costs in New York, according to her official announcement. She argued that fraud and excessive litigation are driving up premiums for ordinary drivers.

The April 1 state budget deadline came and went without the proposals being included. Neither the State Assembly nor the State Senate adopted them in their budget recommendations. But the fight is not over. On April 13, 2026, the governor publicly accused trial lawyers of lying to lawmakers to block the reforms, according to reporting by the Rochester Today and National Today network. Negotiations are ongoing.

Here is what you need to know about the key proposals — and how each one could affect your right to recover if you are injured in a crash.

The Two Proposals That Would Hurt Injury Victims the Most

1. Eliminating the "90/180-Day" Serious Injury Category

Under New York's no-fault insurance system, you generally cannot sue the at-fault driver for pain and suffering unless your injury meets the "serious injury" threshold defined in Insurance Law § 5102(d). That law lists several types of qualifying injuries.

One of the most important categories for many accident victims is the "90/180-day" rule. Under this rule, you can sue for pain and suffering if your injury prevented you from performing substantially all of your normal daily activities for at least 90 out of the first 180 days after your accident. This category has helped thousands of New Yorkers with severe but non-permanent soft-tissue injuries get their day in court.

Hochul's proposal would eliminate the 90/180-day category entirely. This would shut the courthouse door on many injury victims whose injuries are real, painful, and life-disrupting — but not permanent. Think about a delivery driver who was out of work for four months with a severe back injury. Under current law, that person can sue. Under Hochul's proposal, they may not be able to.

2. Rewriting the Fault Rules — Moving Away From Pure Comparative Negligence

Right now, New York uses a system called pure comparative negligence, written into CPLR § 1411. Under pure comparative negligence, you can recover damages even if you were partly at fault for the accident. Your recovery is simply reduced by your percentage of fault. For example, if you were 30% at fault and your total damages are $100,000, you recover $70,000.

Hochul's proposal would change this in two significant ways:

• Proportionate fault for defendants: If a defendant is found less than 50% at fault, they would only be required to pay their proportionate share of non-economic damages (pain and suffering). Under current law, a defendant can be held jointly and severally liable for the full amount.

• Bars recovery for some injured drivers: Drivers who are found more than 50% at fault for an accident would be completely barred from recovering non-economic damages — even if the other driver also contributed to the crash.

This would be a fundamental shift away from New York's long-standing pure comparative negligence rule. New York has historically been one of the most plaintiff-friendly states on this issue. If this proposal passes, many injured drivers who share any significant degree of fault would walk away with nothing for their pain and suffering.

The Other Six Proposals

Beyond the threshold and fault-rule changes, Governor Hochul's package includes:

• Non-economic damages caps for certain at-fault drivers: Limits on pain-and-suffering recoveries where the defendant was impaired, uninsured, or committing a felony at the time of the crash

• Criminal penalties for staged accident organizers: New liability targeting people who set up staged crashes, not just the drivers involved

• Extended fraud investigation periods: Allows insurers more time to investigate suspicious claims before paying out

• Insurer transparency requirements

• Dashboard camera premium discounts

• A reinvigorated Insurance Fraud Bureau

The fraud-fighting proposals are less controversial. They target a real problem. The proposals that concern personal injury attorneys — and should concern you — are the threshold and fault-rule changes.

Why Are These Proposals Being Pushed Now?

The push for reform comes partly from high-profile fraud allegations. Just last week, FedEx filed a federal RICO lawsuit against a Brooklyn law firm, alleging that the firm operated a staged-crash fraud enterprise involving fictitious injuries and unnecessary medical procedures, according to LegalNewsLine. Insurance industry groups have cited cases like this to argue that New York's personal injury system is driving up costs for all drivers.

But fraud cases like that are the exception — not the rule. The overwhelming majority of personal injury claims in New York involve real accidents, real injuries, and real victims. The proposed reforms would sweep up legitimate claimants alongside fraudulent ones.

New York auto insurance premiums are among the highest in the country. But researchers and plaintiff's attorneys argue that premiums are driven more by New York's dense urban traffic, the high cost of medical care, and insurer practices — not by excessive litigation, as analyzed by the Insurance Journal in March 2026.

What Does This Mean for You Right Now?

Important: As of April 14, 2026, these are proposals — not law. New York's current personal injury rules remain fully in effect. Right now, you can still:

• Sue an at-fault driver if you meet the serious injury threshold, including under the 90/180-day category

• Recover even if you were partially at fault (your recovery is reduced, not eliminated)

• Pursue compensation for pain and suffering, lost wages, and medical expenses

But this legislative battle is active and ongoing. The governor is pushing hard. If the reforms pass, they will apply to accidents that happen after the effective date of any new law.

If you were recently injured in a car accident in New York, timing matters. New York's statute of limitations for personal injury claims is generally three years from the date of the accident, but documenting your injuries and starting the process early is critical — especially if the 90/180-day threshold is eliminated before your case resolves.

The Bigger Picture: Fraud vs. Legitimate Claims

Fraud in the personal injury system is a real problem in New York. Staged accidents, inflated medical bills, and unnecessary treatments harm everyone — they drive up premiums, clog the courts, and make it harder for legitimate victims to get fair treatment.

But the proposed reforms are a blunt instrument. Eliminating the 90/180-day category does not surgically target fraud. It eliminates an entire category of legitimate injury cases. Many of the people who rely on this threshold are hourly workers, delivery workers, and tradespeople who were genuinely unable to work for months after a crash.

If you want to understand what personal injury cases in New York actually involve, we cover real verdict and settlement data in our post on what NYC personal injury cases are worth in 2025 and 2026. The numbers reflect real injuries, real medical costs, and real losses.

What You Should Do If You Were in a Car Accident

Regardless of how Albany resolves this debate, here is what you should do if you have been hurt in a crash:

• Get medical treatment immediately — gaps in treatment are used against you, and documenting your injuries from day one is essential

• Keep a daily journal of how your injuries affect your everyday activities — this is direct evidence for the 90/180-day threshold

• Report the accident to your own insurer under your no-fault policy

• Do not give a recorded statement to the other driver's insurer without first speaking to an attorney

• Consult a personal injury attorney early — the sooner you act, the stronger your case

We also put the full scope of the problem in context in our post on NYC traffic deaths and injuries in 2026 — even as fatality numbers have declined, thousands of New Yorkers are still being hurt on the roads every week.

Frequently Asked Questions

Has New York already changed its auto insurance laws in 2026?

No. As of April 2026, Governor Hochul's reform proposals are still pending in the state legislature. The April 1 budget deadline passed without them being adopted. Negotiations are continuing, but no new law has been signed. Current rules remain in effect.

What is the "serious injury" threshold, and do I have to meet it to sue?

Yes. New York's no-fault law requires that your injury meet one of several categories of "serious injury" before you can sue an at-fault driver for pain and suffering. The categories include permanent injuries, fractures, significant disfigurement, and the 90/180-day category. An attorney can evaluate whether your injuries qualify.

If I was partly at fault for the crash, can I still recover?

Under current New York law, yes. New York uses pure comparative negligence, which means your recovery is reduced by your percentage of fault — but you can still recover something even if you were 49% at fault. Hochul's proposal would change this for drivers found more than 50% at fault.

How long do I have to file a personal injury lawsuit in New York?

Generally three years from the date of the accident under CPLR § 214. But there are shorter deadlines for cases involving government defendants — as short as 90 days to file a notice of claim. Do not wait; speak with an attorney as soon as possible.

The Bottom Line

The law on the books today is still in your favor if you have been genuinely hurt in a crash. But legislative changes could affect accidents that happen after any new law takes effect. The best way to protect your rights is to document your injuries carefully, seek prompt medical treatment, and speak with a personal injury attorney who knows New York law.

If you or someone you know was injured in a car accident in New York, the team at Yassi Law PC is ready to help. Call us today at 646-992-2138 for a consultation.

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Written by Reza Yassi | LinkedIn

This article is for informational purposes only and does not constitute legal advice. Although I am an attorney, I am not your attorney, and reading this article does not create an attorney-client relationship. Laws vary by jurisdiction and may have changed since the publication of this article. For advice specific to your situation, consult a qualified attorney.