New York's auto insurance landscape is undergoing a significant transformation, with two major changes taking shape: a new regulation requiring insurers to obtain state approval before raising private passenger rates, and already-effective restrictions on injury claims that could dramatically alter the legal options for crash victims. According to the Office of Governor Kathy Hochul, the Department of Financial Services proposed the rate-approval regulation on September 9, with an effective date of November 27. This move implements the auto insurance overhaul included in the state's FY 2027 budget, which also changed who can recover after a crash and how much they can recover.
While the rate-approval process may eventually provide premium relief for drivers, the claim changes are already in effect for lawsuits filed on or after May 26, 2026, as detailed in DFS guidance issued to insurers. These changes have profound implications for anyone injured in a motor vehicle accident in New York, particularly in Rockland County, where local firm Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C. is urging drivers to understand the new legal terrain.
Three key changes stand out. First, the 90/180 category for non-permanent injuries has been eliminated. Previously, a person could sue if an injury kept them from their usual activities for 90 of the first 180 days after a crash. Now, claimants must meet one of the remaining serious injury categories. 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. 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."
For Rockland County residents, these changes mean that a crash that might have previously supported a claim could now be barred entirely. 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, and emphasizes the importance of immediate evidence gathering and medical care.
The rate-approval regulation is a consumer-friendly measure that could slow premium increases, but its benefits will take time to materialize. Meanwhile, the claim limits are already reshaping how accident cases are evaluated and litigated. For injured parties, understanding these nuances is critical to protecting their rights. The firm's personal injury practice continues to assist those navigating the new rules, offering consultations for those affected.
