A regulation proposed by the New York State Department of Financial Services (DFS) aims to help bring down the cost of car insurance in the state. Governor Kathy Hochul says the new regulation would require insurers to receive prior approval for any private passenger automobile rate increase requests. Currently, insurers may implement no more than two overall average private passenger auto rate increases without prior DFS approval if the cumulative effect of the rate increases are within 5%. Additionally, the regulation ensures that insurers notify policyholders about rate decreases taken without prior approval resulting from state budget reforms and explain why the changes are happening. A 60-day public comment period will begin Wednesday upon the proposed regulation's publication in the State Register. The law and regulation will take effect on November 27th.
