New York auto insurers will soon need state permission to raise private passenger rates under a regulation proposed on September 9 by the Department of Financial Services, according to the Office of Governor Kathy Hochul. The rule, effective November 27, implements an auto insurance overhaul included in the state's FY 2027 budget. But while drivers may eventually see relief from premium hikes, the same budget law has already changed who can recover after a crash and how much, with those claim limits applying to lawsuits filed on or after May 26, 2026, according to DFS guidance issued to insurers.
That split timeline means New York drivers are living under two different sets of rules: one that promises future rate oversight, and another that has already narrowed the path to compensation for crash injuries. The practical effect is that premium relief may take months or longer to materialize, while injury victims filing new claims face stricter standards right now.
Local firm Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C. is urging drivers to understand the distinction, noting that the new limits on injury claims are already in effect for Rockland County crashes. The firm's New City car accident lawyer represents drivers, passengers, and pedestrians injured on local roads, including the Palisades Interstate Parkway and the New York State Thruway.
Three changes are particularly important for crash victims. First, the 90/180 category is gone. Previously, a person with a non-permanent injury could sue if it kept them from their usual activities for 90 of the first 180 days after a crash. That option no longer exists, so claimants must meet one of the remaining serious injury categories. Second, fault can now block pain and suffering damages. Under the new modified comparative fault rule, a claimant whose share of fault is greater than the other driver's cannot recover non-economic damages. Third, some at-fault claimants face a $100,000 cap on non-economic damages if they 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 extend beyond individual cases. Insurers will face tighter regulatory scrutiny on rates, potentially slowing premium growth, but the claim changes could reduce the number and value of lawsuits, affecting both victims and the attorneys who represent them. For drivers, the message is that the legal landscape has already shifted, even if the insurance rate process is still unfolding.
