Drivers Face Unprecedented Rate Hikes

The increase in premiums is outpacing general inflation. The motor vehicle insurance component of New York’s Consumer Price Index rose nearly 8% in the first half of 2025, more than double the state’s overall inflation rate of about 3%.

Insurance experts cite multiple pressures behind the surge. Globally, supply chain shortages and tariffs have driven up the cost of parts and repairs. The spike in prices for new and used cars has inflated replacement costs. Climate-driven claims from severe storms and floods – events that hit New York particularly hard – have also played a role.

But analysts and consumer watchdogs warn that many of the factors driving premiums skyward are uniquely New York problems. And solutions are available.

Fraud and Loopholes

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