New York small businesses and state leaders are urgently calling on Governor Kathy Hochul to stop rising auto insurance premiums, which are hitting families and businesses alike. More than 30 store owners, wineries, laundromats, workshops, salons and restaurants sent letters this week to Hochul, Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie, warning that costs have skyrocketed between 50% and 100% since 2021.
“For the small businesses that sustain this state, vehicles are the engine of our operations,” the owners wrote. “Whether it’s a delivery van in Flushing, a contractor truck in Brooklyn, or a utility vehicle in the Bronx, our economic growth is crushed by a system that has lost control.”
Owners explain that insurance has become the second largest expense after payroll and that many are forced to cut staff or pass costs on to clients, affecting families already facing inflation. The coalition represents the city’s diversity: Chinese businesses in Flushing, Bangladeshi and South Asian businesses in Ozone Park, African-American wineries in Brooklyn, and Latino businesses in the Bronx and Queens.
Hochul’s proposal seeks to attack the causes of high costs, such as fraud and legal abuse, and ensure that savings reach consumers and businesses directly. The reforms include strengthening fraud investigation, expanding the liability of organizers of staged accidents, limiting excessive payments and strengthening oversight of insurers.
Secretary of State Walter T. Mosley joined the call, recalling that high costs also affect families: “Almost every household depends on a car. When premiums go up, families feel it immediately. Responsible drivers pay inflated rates due to fraud, simulated crashes and systemic abuse,” he stated. Mosley stressed that a fair system must reward accountability and protect those who follow the law, and that Hochul’s proposal seeks to restore that fairness.
Mosley added that the plan includes strengthening the detection and prosecution of fraud, monitoring medical providers involved in fraudulent claims, limiting awards for reckless or illegal drivers, and ensuring that savings benefit New Yorkers. “Reducing insurance costs means easing pressure on family budgets, supporting workers and small businesses, and making our state more livable for everyone,” he said.
José Bayona, spokesperson for Citizens for Affordable Rates, said: “These are not just business owners; they are the heart of their neighborhoods. They are paying a ‘fraud tax’ that they did not create and can no longer afford. Albany has the power to fix it. It’s time to use it.”
While they await legislative action, business owners and state leaders warn that without reforms, many businesses could disappear and neighborhoods would lose vital economic drivers. “We all share the road and we share mutual responsibility,” Mosley concluded. “Governor Hochul’s proposal moves New York toward a system that reflects that
shared responsibility and returns equity to its place. That is a goal worth promoting for families in every corner of New York State.”
