New York's high car insurance costs eyed by Hochul
And U.S. Rep. John Mannion's Republican opponent has suspended his campaign.
Good afternoon — It’s Friday and Apricot Day.
In today’s CapCon:
Gov. Kathy Hochul will aim to slash “too damn high” car insurance rates with a “bold” and “controversial” proposal in her State of the State.
Hochul will also propose billions of dollars in new funding for clean water infrastructure statewide.
U.S. Rep. John Mannion no longer has a Republican challenger after his opponent unexpectedly dropped out Friday.
The state Senate has scheduled a hearing on AI risks and solutions for next week.
New bills target privacy at pregnancy centers and standardized site plan approvals statewide.
Names in today’s CapCon: Kathy Hochul, Kathryn Wylde, Julie Tighe, Rob Hayes, Zohran Mamdani, John Mannion, John Lemondes, John Salka, Brandon Williams, Michelle Hinchey, Rachel May, Deborah Glick, Anthony D’Esposito, Laura Gillen, Kevin Parker, Joe Addabbo, David Weprin, Jamaal Bailey, Crystal Peoples-Stokes, Michaelle Solages, John Sarcone
🚗 Hochul to announce court-focused car insurance cost proposal
We’re four days out from Gov. Kathy Hochul’s State of the State.
So far, Hochul has teased plans to expand access to child care, create a protest buffer zone around houses of worship, combat 3-D printed ghost guns, allow lawsuits against federal immigration officers and protect kids from online predators.
She teased another proposal Friday while delivering remarks before the Long Island Association in what sounded a lot like a speech stumping for her reelection.
“One of the bills that’s too damn high here on Long Island in particular — your car insurance,” Hochul said. “Why are car insurance rates so high here on Long Island and in the state of New York?”
New York has among the highest, if not the highest, car insurance rates in the country, according to data compiled by Bankrate, a financial services company headquartered in New York City.
If you ask industry stakeholders why, they’ll tell you the cost of auto insurance is higher in New York because state law allows generous payouts for drivers involved in car accidents, which incentivizes fraudulent incidents and claims.
The most recent annual report issued by the state Department of Financial Services, the state’s insurance regulator, documented a rapid rise in auto insurance costs but didn’t offer a diagnosis for the trend.
But the state must have some idea as to why rates have risen because Hochul is now set to announce a proposal to curb those costs, she said Friday.
“Here’s what we’re doing. It’s bold and it’s going to be controversial — putting that out there right now — we’re going to announce on Tuesday that there’s going to be major changes to how we approach this in the court system,” Hochul said.
She didn’t offer any additional details, leaving us to wonder what such a proposal might be. But it may be something that’s already been proposed.
The increase in car insurance costs is not something that’s gone unnoticed by members of the state Legislature and people directly in Hochul’s orbit.
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