Skip to Content
Streetsblog New York City home
Streetsblog New York City home
Log In
Auto Insurance

BREAKING: State Lawmakers Cut Hochul’s Car Insurance Scheme From Their Budget

The Uber-backed plan to lower car insurance rates has drawn criticism from legal professionals, crash victim advocates and state pols who say the legislative changes would strip crash victims of rights.

ALBANY — The state Senate and Assembly have submitted their one-house budgets, and both omitted Gov. Hochul's spiky car insurance proposal from their spending agenda.

The Uber-backed plan to lower car insurance rates has drawn criticism from legal professionals and crash victim advocates who say the legislative changes would strip crash victims of rights while misstating the drivers of high costs. (Streetsblog's intense coverage probably helped frame the debate.)

Hochul and the car insurance industry have argued that fraud and "jackpot" payouts have increased costs for insurance companies so much that they can't reduce premiums. Her proposed limits on who can collect damages following a crash are intended to rein in those costs, even as the connection appears dubious to someincluding state lawmakers.

The one-house budgets serve as the state Legislature's first opportunity to stake an official position on the governor's executive budget proposal. The absence of language on car insurance in each chamber's budget rebuttal could signal a lack of consensus among state lawmakers or between the governor and the state Legislature itself.

It can also set the stage for a protracted legislative debate over a complicated policy issue, similar to negotiations over discovery reform last year. 

Each house also left out approval for robotaxi pilots in upstate New York and Long Island, now that the governor has ditched it. The plan was reportedly a victim of political calculus as Hochul rallies union support for her insurance proposal. Organized labor balked at the prospect of taxi and rideshare drivers losing their jobs to robots.

The Stop Super Speeders Act, legislation that would put speed-limiting devices in the cars of reckless drivers via a New York City pilot, was included by the state Senate, where state Sen. Andrew Gounardes (D-Brooklyn) introduced legislation with a similar intent before it was watered down and eventually killed last session. 

Part of the holdup was in the Assembly, which has not included the bill in its one-house budget, and whose leader, Assembly Speaker Carl Heastie, has raised concerns about drivers' rights to due process. 

This is a breaking story. Check back later. 

Stay in touch

Sign up for our free newsletter

More from Streetsblog New York City

Mamdani’s 14th Street Redesign: The Perfect Opportunity For BRT-Style Bus Stations

A "once-in-a-generation upgrade" to 14th Street offers Mayor Mamdani a chance to make New York City's streets "the envy of the world."

March 10, 2026

The Speeding Situation in New York City Is Even Worse Than It Seems

Speed cameras can’t ticket vehicles with ghost plates — which means we don't know how often their drivers break the law.

March 10, 2026

Tuesday’s Headlines: Harsh Winter Edition

Sure, it was a gorgeous day yesterday — but that's only because you're not a mauled street safety device. Plus other news.

March 10, 2026

Community Boards Push Mamdani’s DOT to Use ‘Sammy’s Law’ To Lower Speed Limits

As City Hall and the Council bicker over lower speed limits, community boards are demanding action.

March 9, 2026

Urban Truth Collective: Straight Talk About The Joy Of Cities In An Age Of Disinformation

The Three Tenors of Urbanism explain their latest effort: The Urban Truth Collective.

March 9, 2026

Monday’s Headlines: Daylighting Dead-End Edition

Mayor Mamdani declined to stick up for universal daylighting when pressed about the issue on Friday. Plus more news.

March 9, 2026
See all posts