New York's auto insurance overhaul is moving forward, but the benefits and burdens are arriving on different timelines. On September 9, the New York State Department of Financial Services proposed a regulation that would require auto insurers to obtain state approval before raising private passenger rates, effective November 27, according to the Office of Governor Kathy Hochul. The rule implements the auto insurance overhaul included in the state's FY 2027 budget. However, that same budget also changed who can recover after a crash and how much, and those claim changes already apply to lawsuits filed on or after May 26, 2026, as detailed in DFS guidance issued to insurers.
The regulatory approval process for rate increases may eventually provide premium relief, but it will take time to reach drivers. Meanwhile, the new limits on injury claims are already in effect for crashes in Rockland County and across New York. Local firm Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C. urges drivers to understand this gap. Their 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.
"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."
Three changes crash victims should understand. First, the 90/180 category is gone. People with a non-permanent injury used to be able to 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. Non-economic damages are capped for at-fault claimants who were driving uninsured, convicted of impaired driving, or convicted of a felony committed while driving.
These changes place greater emphasis on evidence and legal strategy from the outset. The firm's personal injury practice handles serious injury and wrongful death cases, and injury clients pay no fee unless the firm recovers compensation. For more than five decades, Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C. has represented injured people and their families across New York and New Jersey. Barry S. Kantrowitz joined the firm in 1985 to carry on the work his father, Walter L. Kantrowitz, began in 1975. Today he leads its personal injury practice, negotiating with and litigating against insurers, corporations, municipalities, and hospitals. Its attorneys also handle family law, class action, employment, estate, and commercial real estate matters from offices in Rockland and Bergen counties. Anyone hurt in a crash can call (866) 971-0927 or send the firm a message. Evening and weekend consultations are available. The implications of this announcement are clear: while rate relief may be delayed, the new limits on crash claims are immediate, making it critical for drivers to understand their rights and act quickly after an accident.
