Auto Insurance Reform Would Save MTA Nearly $50M Per Year

The Governor and MTA leadership also announced today that all MTA funds saved through these reforms — an estimated $48 million annually — over time will be available to invest in operating subways, buses and railroads for New Yorkers.

The MTA’s analysis also found that these reforms would generate additional annual savings of as much as $25 million total for the more than 130 transit agencies in New York that operate outside the MTA region. These agencies have a combined fleet of more than 3,000 buses and collectively carry hundreds of thousands of riders each day in urban, suburban and rural communities across the state.

MTA Chair and CEO Janno Lieber said, “Governor Hochul’s common sense auto insurance reform will substantially reduce MTA’s exposure to windfall payouts for questionable lawsuits. Every dollar saved can be redirected back where it belongs: to delivering more frequent, more reliable transit service for New Yorkers.”

The reform package modernizes New York’s approach to auto liability by limiting disproportionate responsibility for certain aspects of damage awards. The MTA’s fleet of buses will no longer be an easy target for big payouts when another vehicle was the real cause of an accident. These reforms are expected to save the MTA $48 million per year, savings that will allow the MTA to redirect the funds into transit service, safety improvements and infrastructure upgrades.

New York State Department of Transportation Commissioner Marie Therese Dominguez said, “Governor Hochul understands the pervasive impact that New York’s antiquated liability laws have on affordability in our state, not only driving up auto insurance rates but also subjecting our public transit agencies to unnecessary lawsuits and damage awards. The reforms proposed by the governor make all the sense in the world and would allow our transit providers to focus more of their precious resources on serving riders instead of fighting lawsuits.”

New York State Department of Financial Services Acting Superintendent Kaitlin Asrow said, "Governor Hochul has put together a comprehensive set of proposals that are working together to address the root causes of increasing insurance costs in the state. DFS is proud to partner with agencies across state and local government to make our roads safer and deliver meaningful savings to New Yorkers."