Res. No. 389

Resolution calling on the New York State Legislature to pass, and the Governor to sign, the Automobile Insurance Consumer Information Act (S.1196/A.3983)

By Council Member Dinowitz

                     Whereas, Automobile insurance is mandatory in New York State, and residents cannot register or drive their car lawfully without it; and

Whereas, The Department of Financial Services (DFS) regulates automobile insurance in New York, including reviewing insurers’ rate applications along with their underlying calculations to make sure that rate increases are justified and not excessive; and

Whereas, The costs of automobile insurance increased by nearly 35 percent nationwide from 2022 to 2025, according to the Bureau of Labor Statistics; and

Whereas, Increasing automobile insurance costs are especially burdensome for New York City residents, who paid an average annual premium of $4,223 in 2025-nearly twice the national average, according to Bankrate; and

Whereas, It is difficult for New York drivers to comparison shop for the best insurance deals as the DFS only ranks automobile insurance companies based on the number of consumer complaints upheld against them and provides generic information about the existence of various discounts and savings from providers but not premium rates; and

Whereas, Currently no New York State official is charged exclusively with the task of representing insurance consumer interests at DFS and reviewing rate applications filed by insurers; and

Whereas, A 1998 report by the Assembly Speaker’s Task Force on Automobile Insurance estimated that an Insurance Consumer Advocate would save consumers $600 million a year-over $1.2 billion in 2026, according to the Bureau of Labor Statistics CPI Calculator; and

Whereas, S.1196, sponsored by Senator Joseph P. Addabbo Jr. and pending in the New York State Senate, and companion bill A.3983, sponsored by Assembly Member David Weprin and pending in the New York State Assembly, would enact the “Automobile Insurance Consumer Information Act;” and

Whereas, The Automobile Insurance Consumer Information Act would establish an Office of Insurance Consumer Advocate to represent consumers in ratemaking and other matters before DFS; and

Whereas, The Automobile Insurance Consumer Information Act would require DFS to make information about premiums available on the department’s website, allowing consumers to comparison shop and promoting competition around both the cost and quality of coverage; and

Whereas, The Automobile Insurance Consumer Information Act would authorize municipalities to petition DFS for rate changes and require DFS to hold hearings when called for by the Insurance Consumer Advocate, ensuring consumers are represented in the rate-setting process; and

Whereas, The Automobile Insurance Consumer Information Act would require auto insurance rate filings to include full statistical justifications and be submitted in a uniform format, allowing for effective oversight; now, therefore, be it,

Resolved, That the Council of the City of New York calls on the New York State Legislature to pass, and the Governor to sign, the Automobile Insurance Consumer Information Act (S.1196/A.3983).

NEM

LS 21844

3/11/26