ALBANY – Because of a new state law, every driver in New York is poised to be automatically enrolled in expanded, more expensive auto insurance coverage.
That includes millions of unmarried motorists who would derive no benefit from the extra coverage, which allows an individual to sue their spouse for damages stemming from negligent driving.
The new law does not differentiate between unmarried and married New Yorkers.
In memos last year, insurance companies warned Gov. Kathy Hochul that roughly half the state’s driving population would be enrolled in insurance coverage from which it would not benefit. Hochul signed the bill into law in December, without insisting on narrowing that aspect of the bill.
New Yorkers may opt out of the added coverage, which, according to the state Department of Financial Services, costs anywhere from $20 to $84 annually.
But opting out requires the consumer to be aware of the new law, contact their insurance company and sign a form declining the coverage.
Already, New Yorkers had among the highest auto insurance bills in the country. The new law was pushed through by groups representing state trial lawyers, who are among the most powerful interests in Albany.
Before the bill passed the State Assembly in May 2022, Republican Assemblyman Steve Hawley of Batavia argued that “attorneys will love this, because it creates another lawsuit,” where attorneys would gain a cut of the payout.
The law took effect on Aug. 1. When auto insurance is issued, renewed or modified in New York, companies must now add the supplemental coverage to a person’s plan and provide the consumer written notification of the addition.
Still, insurance companies worry that consumers may not notice, and that insurers will be blamed when customers do eventually notice higher premiums.
The chairman of the Senate Insurance Committee, Sen. Neil Breslin, sponsored the supplemental insurance bill in 2022. Breslin told The News this…
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