Buffalo, N.Y. (WBEN) - One group is calling on Albany to take a look at car insurance rates this upcoming session. Citizens for Affordable Rates says car insurance is too high in New York.
James Freedland of Citizens for Affordable Rates says the cost of living is out of control.
"Rent, groceries, energy bills, but auto insurance is one of the hidden cost drivers that's making life more unaffordable. The average New Yorker on the road pays nearly twice the national average for car insurance, and that comes up to over $4,000 a year for full coverage," said Freedland in an interview with WBEN.
He says it's a broken system that rewards fraud lawsuits and inefficiency.
Freedland says there are a number of solutions.
"From cracking down on fraud that could be tougher penalties for ring leaders who stage fake accidents that then drive up The cost of insurance for everyone else is following the rules. They could look at unfair pricing factors based on where you live or you know what your family looks like, or your how you know your neighborhood, and also take steps to encourage competition to make it easier for new insurers to enter the market, which can lower costs for all New Yorkers," Freedland suggested.
Citizens for Affordable Rates is airing an ad (see above) to send the message to lawmakers to look at the issue come January.
"We're having conversations with the governor and lawmakers in Albany to make sure that insurance affordability is on the legislative agenda this session that begins in January. So we're really trying to start in advance to make sure that they are educated on this issue, that they're aware of how serious this is. The fact that New Yorkers are paying double the national average for car insurance, that really stands out. And we are optimistic and hopeful that that message is being heard and that the lawmakers will listen to the people who are fed up with paying double what everyone else in the country is paying just for car insurance," Freedland said.
Why are car insurance rates high in New York? Paul Dreher of Lawley Insurance says there are several factors, including inflation and the higher cost of auto repair.
"Cars today have so much technology, even in the bumpers, in regards to sensors and cameras, costs have really increased dramatically," explained Dreher with WBEN.
Dreher says there are additional factors, including weather.
"We've seen a lot more dramatic changes in weather patterns that include flooding and wildfires, and all of that contributes to the cost of insurance," he said.
He adds there's been more theft of vehicles dramatically have increased over the past few years.
Dreher believes it would be up to state lawmakers to look into lowering car insurance rates.
"I think, to decrease the cost of insurance, I would think it would have to be legislative changes and instituting some protection from minor accidents and legal system abuse, and set certain thresholds in regards to the type of injuries before lawsuits could commence," Dreher said.
He notes cases where there are $1,500 awarded in property damage in a crash, but significant payouts for bodily injury, and he says that's just a impact of the third-party lawsuits against really, against insurers.
The legislature resumes session in January.