Auburn Citizen: Letter: NY insurance bill would increase prices

By: Steve Corapi

Auto and homeowners insurance in New York could soon become more expensive, disproportionately harming those least able to afford it, thanks to a bill headed to Governor Hochul’s desk.

If signed into law, S.74-A will radically expand liability in New York, increasing costs for policyholders to the tune of $2.2 billion a year, according to an analysis by Milliman Inc. In fact, a new report from the Lawsuit Reform Alliance of New York estimates that each household will be on the hook for at least an additional $454 each year.

The most vulnerable New Yorkers will feel this increase most severely. An annual survey from the Federal Reserve finds 32% of American adults are unable to pay a $400 emergency expense using cash alone and 11% can’t cover that cost by any method. Historic inflation is likely to drive those numbers even higher this year. So, as Governor Hochul looks to keep costs down for New Yorkers, she should also be focused on nixing any proposals that could further strain struggling families.

New York is already infamous for its liability environment, which burdens residents with an estimated $6,000 per household each year – nearly double the national average. As a result, the Empire State ranks as the third most expensive state for car insurance, with an average annual premium of $2,566. As an independent insurance agent, I am all too familiar with the struggles that many New Yorkers face accessing auto coverage. For many, the increased price of insurance caused by this bill will be devastating.

Such a massive increase threatens to leave many without affordable insurance at all. Those with no choice but to drive without the proper coverage – particularly low-income workers, as well as residents of rural communities and smaller cities like Auburn where public transportation is limited or nonexistent – will be faced with legal penalties and unbearably expensive out-of-pocket costs in the event of a collision.

New Yorkers already spend too much on liability coverage. As prices at the grocery store continue to rise and economic instability looms, Governor Hochul can save New Yorkers from higher bills and yet another new cost by vetoing S.74-A.

Steve Corapi is vice president at RG Wright Agency in Auburn.