State auto insurance reform estimated to save MTA $48M annually
The plan's intention is to prevent the MTA, and everyday drivers, from being forced to pay “jackpot” settlements for crashes in which their buses were not primarily to blame.
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Gov. Kathy Hochul and the Metropolitan Transportation Authority (MTA) announced today that the governor's proposal to lower the cost of auto insurance would deliver $48 million in annual recurring savings for the MTA. The reforms aim to limit disproportionate responsibility for certain aspects of damage awards by creating new legal liabilities for criminally staged accidents, ensuring those found at fault for an accident can’t sue their victims for compensation, better defining what actually constitutes a serious injury, among other measures.
The plan's intention is to prevent the MTA, and everyday drivers, from being forced to pay “jackpot” settlements for crashes in which their buses were not primarily to blame. The money saved through these reforms, an estimated $48 million annually, will be redirected to transit service, safety improvements and infrastructure upgrades for New Yorkers.
“Gov. Hochul’s common sense auto insurance reform will substantially reduce MTA’s exposure to windfall payouts for questionable lawsuits," said MTA Chair and CEO Janno Lieber. "Every dollar saved can be redirected back where it belongs: to delivering more frequent, more reliable transit service for New Yorkers.”
