New York Working Families Struggling with High Auto Insurance Costs
Working families in New York are facing severe financial pressure due to the high cost of car insurance. A new report by Citizens for Affordable Rates, a consumer advocacy group, in collaboration with the Partnership for New York City, reveals that the average car insurance premium in New York is $4,031 per year—nearly double the national average.
The report highlights that insurance fraud and legal system inefficiencies are driving these extra costs. Families across Queens, Bronx, Brooklyn, and Long Island, including immigrant and minority communities, are forced to make difficult choices between keeping their cars and paying for basic necessities like food.
The broken insurance system and legal complications are putting immense pressure on family finances. Hidden costs and fraudulent claims add thousands of dollars to annual expenses, leaving families struggling to make ends meet.
José Bayona, spokesperson for the organization, said, “Every day, families are one car repair away from financial disaster, while also being burdened by high insurance premiums. If Albany took action to stop fraud and reform the legal system, these families wouldn’t be under so much financial stress.”
He added, “Lawmakers must act immediately to reduce fraud, lower insurance costs, and provide working families with the financial security they deserve. Without action, families fall behind on rent, small businesses close, and immigrant families face additional hardships.”
The report specifically highlights no-fault insurance fraud, taxi and for-hire vehicle scams, and high litigation costs as the major contributors to the burden on New York families. Thousands of households are financially strained, small businesses are threatened, and immigrant families struggle to make a living because of these excessive costs.
