Updated Apr 6, 2026
New York Insurance Reform Analysis Highlights Need for Targeted Measures to Cut Rising Auto Premiums
The University Transportation Research Center (UTRC) at the City University of New York released a detailed analysis identifying structural causes behind New York’s sharply rising auto insurance premiums, which have recently climbed nearly double the national average. The study highlights systemic fraud, staged collisions, inflated claims, and adverse litigation dynamics as key drivers that add an estimated “hidden fraud tax” of about $200 per policy. New York drivers face some of the highest insurance costs nationwide, with full coverage averaging $4,031 annually compared to $2,679 nationally, and a 13.5% premium increase hit in 2025—ranking among the highest in the country.The Indian EYE
To address these challenges, UTRC recommends a series of targeted reforms including enhanced fraud detection, improved data sharing between insurers and regulators, adoption of telematics-based underwriting, and stronger enforcement of New York’s Excess Profit Laws to ensure cost savings benefit consumers. The analysis draws on Florida’s recent experience, where insurer-led reforms have produced an average 8% rate reduction for 2026 and nearly $1 billion in consumer refunds. UTRC’s letter to New York legislative leaders urges prioritizing these data-driven policy actions to contain cost pressures and return savings directly to policyholders across the state.The Indian EYE
Iowa Contractor Arrested on Charges of Insurance Fraud and Unlicensed Claims Adjustment
Joseph Starr, a 39-year-old Rockwell contractor, was arrested on March 24 and charged with felony insurance fraud and two counts of acting as a public adjuster without a license. The Iowa Insurance Division’s Fraud Bureau found that Starr improperly negotiated insurance claims on behalf of clients with Farm Bureau Financial Services and Osage Insurance while working for Sibling Construction. Authorities also allege Starr submitted invoices for work he had not completed, attempting to gain financial benefit for himself and his companyKIMT News 3.
Under Iowa law, contractors who carry out repair work on a property are prohibited from acting as public adjusters on the associated insurance claims. Starr’s charges include a Class D felony for insurance fraud. This case was uncovered through a targeted investigation by the state’s Fraud Bureau.KIMT News 3.
Kansas Farmer Pleads Guilty to Federal Crop Insurance Fraud Scheme
David L. Mongeau, a 54-year-old farmer from Holcomb, Kansas, pleaded guilty to making false statements related to crop insurance and committing bank fraud. Mongeau submitted a fraudulent claim to the USDA’s Federal Crop Insurance Program in January 2020, falsely reporting that severe weather destroyed a portion of his corn crop in Rooks County. He failed to disclose selling over 33,000 bushels of corn, including the crop he claimed was lost, resulting in an overpayment exceeding $241,000 to Mongeau through the program.KSAL.com
In addition to the false insurance claim, Mongeau committed bank fraud by pledging farm equipment and crops as collateral for loans from the First National Bank of Syracuse, then disposing of the collateral through sales or trades without informing the bank. This undisclosed disposition caused losses exceeding $300,000 to the bank. Mongeau is scheduled for sentencing on July 1, 2026.Audacy
Brief: Iowa Insurance Division Highlights Risks of Unlicensed Public Adjusting
Authorities in Iowa recently arrested Joseph Starr, a Rockwell man charged with felony insurance fraud and unlicensed public adjusting after he negotiated claims and submitted invoices for uncompleted work. Iowa law prohibits contractors from acting as public adjusters on insurance claims, and the Iowa Insurance Division's Fraud Bureau emphasized the importance of verifying public adjusters’ licenses through its website to prevent illegal claims activity and protect consumers.KIMT News 3
Brief: Federal Crop Insurance Fraud Undermines Support for Hardworking Farmers
Fraudulent crop insurance claims, such as those made by Kansas farmer David L. Mongeau who pled guilty to falsely reporting crop losses while selling the same corn for profit, directly harm USDA safety net programs designed to support farmers facing genuine hardships. Officials from the U.S. Department of Agriculture and the Justice Department emphasized that such abuse diverts critical funds from legitimate producers relying on the Federal Crop Insurance Program, which is federally subsidized to help farmers recover from natural disasters and risks. This exploitation of taxpayer-funded programs leads to significant financial losses exceeding $240,000 in the Mongeau case alone, threatening the integrity and effectiveness of assistance meant to sustain the agricultural sector.KSAL.comAudacy
Why did New York set its minimum liability limits at 25/50/10, and are there legislative efforts to change them?
Every state law is different. Texas is going to be different than what Florida requires and vice versa. If they don't have the proper coverage for Texas and something happens, but they reside in Florida, they could find themselves in a tough pickle, either being underinsured or maybe paying more for what they actually needed while they were traveling away.
How do New York’s PIP requirements interact with liability and uninsured motorist coverage in claims?
The insurance company would be different because you can add protection. You can add different coverages really anytime on your auto insurance policy. They're just going to look at, ask for what your main balance is on that loan and look to see what the actual cash value, the ACV is of that vehicle. And then that's typically how they handle their claim.
In what scenarios do minimum property damage limits commonly prove insufficient?
They have all these sensors and cameras in these cars and specialized parts. It can make it great to have these self-driving features, but when you have to have them repaired after an accident, it's going to cost more for the vehicles. It is counterintuitive — on one hand you have all these smart features, but when those smart features break, you need geniuses to fix them.
Should drivers in metropolitan areas carry higher uninsured/underinsured motorist limits?
Kentucky has higher rates than Tennessee, Missouri, Indiana, and Illinois. We have higher rates than all four of those states that are immediate, like they touch us. And it's mainly because we have more claims in the state of Kentucky, whether that be from weather — we're in the new tornado alley. We have a lot of deer here that cause accidents. I put in at least three to four deer hit accidents a week.
How does SUM (Supplemental UM) coverage differ from basic UMBI requirements?
The lower one could have cut all of your liability limits down to the very bare state minimum and liability only. And you're not going to know that you are missing things that you need until you need them. They're cutting coverages you're not thinking about because that's not something you need at this moment.
What liability limits are recommended for drivers with significant assets?
The lower one could have cut all of your liability limits down to the very bare state minimum and liability only. And you're not going to know that you are missing things that you need until you need them. They're cutting coverages you're not thinking about because that's not something you need at this moment.
How quickly do insurers process no-fault PIP claims in New York?
When it costs more because of a claim to repair something because of weather damage or somebody gets hurt because of medical expenses, they have to adjust. They look at the cost to get parts replaced, whether they've had a rise in parts costs. On the flip side with the medical, that's where they look at the medical side of insurance and see what is the average cost of an x-ray. What are these insurance companies paying out of pocket? And that's where the med pay insurance comes into play. If you're hurt in an accident.
What are the most common coverage gaps drivers overlook when carrying minimum limits?
The lower one could have cut all of your liability limits down to the very bare state minimum and liability only. And you're not going to know that you are missing things that you need until you need them. They're cutting coverages you're not thinking about because that's not something you need at this moment.
How do penalties for uninsured driving affect future underwriting and premiums?
DUI is probably one of the biggest no-no's. Subsequent DUIs are even worse. If you want no chance of getting your insurance ever, just keep getting DUIs. They are reckless, irresponsible. You're opening liability not just to yourself but to everybody else that might possibly be on the road.
What common misconceptions do drivers have about New York’s minimum requirements and no-fault law?
Misconception #1: Minimum coverage means you're fully protected. The lower one could have cut all of your liability limits down to the very bare state minimum and liability only. And you're not going to know that you are missing things that you need until you need them. They're cutting coverages you're not thinking about because that's not something you need at this moment. Misconception #2: The cheapest quote is the best deal. A lot of people only look at the very bottom line. They only look at the pennies and that's not always the best route to take. Look at your overall package. Look at what you're getting for what you would be paying. And sometimes, sometimes paying the lowest is not always going to be your best option. Misconception #3: If the other driver causes the accident, their insurance pays for everything. One, you have to rely on your own insurance, and two, you have to rely on your own medical insurance, which that could even be costly nowadays. So it's a tough situation to be in. There's really no winners. Misconception #4: Your credit score doesn't affect your insurance. Legally we have to say yes, but it's not the same information that you would go to a bank and ask for a loan. That's a different credit-based reporting that they're going to pull. So based on contract terms and conditions, we do have to say yes. And I always clarify that. I'm like, yes, your credit is factored in, but it's not the same as this credit. It's not the same as your Experian, your Equifax, your TransUnion — it's more insurance-related history that we use when we refer to credit-based insurance. Misconception #5: Switching carriers after an accident helps you avoid the rate increase. You're just going to catch that rate quicker because as soon as you switch they're going to run your report, they're going to see that accident, and then they're just going to go ahead and apply that right off the bat. Misconception #7: You can do everything online and get the same result. There's a reason that I have gone to school and I know what I'm doing. There's a reason for that. They can simplify it all they want for online, but you still, you can't understand the risk that you're taking or the discounts that you're getting or the discounts that you're missing if you're not talking to somebody that knows what they're doing. And the people that they put on the other end of those 1-800 numbers do not always have your best interest at heart. Misconception #8: Where you live doesn't really matter that much. Your accident rates, theft patterns, and the repair cost in the same area can all affect the pricing. That's why you may have two drivers living only a few streets apart can have noticeably different premiums. Misconception #9: Modern cars with safety features are always cheaper to insure. They have all these sensors and cameras in these cars and specialized parts. It can make it great to have these self-driving features, but when you have to have them repaired after an accident, it's going to cost more for the vehicles. It is counterintuitive — on one hand you have all these smart features, but when those smart features break, you need geniuses to fix them Misconception #10: Your insurance company tells you when you're missing discounts or overpaying. People don't know to call your insurance company or your agent and say, 'I retired. I'm not putting as many miles on my vehicle.' To this day, I haven't had anybody ever call me to kind of adjust their mileage usage with me midway through their policy term. But it's an important factor that could save them money in the long run. We're not required to tell them either — like, hey, let us know if your driving habits change. That's all done by the insurance company directly at the renewal. So they'll send them their paperwork and say, 'has anything changed?' And then it's up to the insured, the customer, to point that out. And a lot of people don't, to be honest with you.