As part of the 2025-26 New York legislative session, S.5235 was introduced in the state Senate. If passed, the bill would mandate a comprehensive study to evaluate the adequacy of current minimum coverage amounts for noncommercial auto insurance.
While this is not the first time a bill like this has been introduced to the state Legislature, this initiative reflects the state’s commitment to ensuring that insurance requirements align with contemporary needs and to providing sufficient protection for consumers.
Current auto limits
New York state’s current auto insurance minimums have not been substantively updated in decades—raising concerns about whether they offer sufficient financial protection in today’s economy. With rising medical costs, vehicle repair expenses, and accident severity, outdated coverage limits may leave accident victims underinsured and financially vulnerable.
This legislation matters because it would lay the groundwork for data-driven policy decisions that could modernize insurance standards, enhance consumer protection, and ensure the financial stability of New York state’s auto insurance system. The study would provide crucial insight into how increased minimums may impact premiums, affordability, and market dynamics—striking a balance between consumer safety and economic feasibility.
The purpose of the bill
The core objective of S.5232 would be to direct New York State’s Department of Financial Services (“DFS”) to conduct an in-depth study of existing minimum coverage amounts for noncommercial auto insurance in the state. This would encompass liability coverage, uninsured motorist coverage, no-fault personal injury protection, and additional optional coverages (i.e., comprehensive, collision and supplementary uninsured/underinsured motorist coverage).
The DFS is tasked with consulting various stakeholders—including insurance companies, producers, consumer advocacy groups, and other relevant entities—to gather diverse perspectives. The findings and recommendations would need to be compiled into a report and submitted to Gov. Kathy Hochul and legislative leaders by April 15, 2027.
Impact on the insurance market in the state
If S.5235 were to pass, it would signify a proactive approach to revisiting and potentially revising insurance minimums to better reflect current economic and societal conditions.
Potential consequences of this study would be the adjustments in minimum coverage requirements, which would impact both insurers and policyholders. Increases in minimum coverage could potentially lead to higher premiums and insurers may need to adjust their product offerings to comply with new standards, which would influence both competition and consumer choices.
Should any such increases occur, New York state would be joining a pattern of several other states in the nation that have increased their noncommercial auto minimum coverage amounts.
Practical tips for agents
Even prior to possible passage of this bill, independent insurance agents can be proactive in preparing for the outcomes of the study mandated by the bill.
Agents can stay abreast of potential changes in required minimum coverage amounts by regularly monitoring updates from the DFS, industry associations and the study—should it pass.
Additionally, staying informed about the perspectives of various stakeholders involved in the study, such as insurance companies, consumer advocacy groups, and the DFS will be crucial to staying updated on the legislative discussions and potential adjustments to the possible law.
Eventually—if recommendations are made to increase minimum coverage amounts—agents may need to adjust their sales strategies, educate clients on potential changes to coverage requirements, and be prepared for a shift in premiums based on the study’s outcomes.
If the potential study concludes that higher minimum coverage is necessary, agents may need to ensure that their clients are aware of new coverage options and the financial implications of these changes, including any adjustments to premiums.
Agents can assist their clients by helping them to assess their existing policies to identify gaps or areas needing adjustment in anticipation of potential regulatory changes.
It also may be a good idea to encourage them to consider coverage beyond the minimum requirements to ensure comprehensive protection—especially in light of rising costs associated with accidents.
Regardless, as a general good business practice, keeping an open line of communication with clients will help independent agents remain competitive and ensure that clients have adequate coverage.
Lastly, it is always a good idea to participate in workshops, training sessions, or any other type of continuing education to enhance your understanding of evolving regulations and market trends.
PIANY supports the bill
The introduction of S.5235 underscores New York state’s dedication to evaluating and potentially enhancing auto insurance minimums to better protect consumers. Independent insurance agents—by staying informed and proactively engaging with clients—can turn these developments into opportunities to reinforce their value as trusted advisers in an evolving insurance landscape.
PIANY acknowledges that raising minimum coverage limits in the current environment of rising insurance premiums presents significant challenges.
However, the association strongly supports the proposed study bill, as it would provide crucial data and insights for policymakers and industry leaders. This study would enable informed decision-making, ensuring that those in the insurance industry can identify a sustainable financial approach that balances the need for adequate protection with the affordability concerns of all New Yorkers.
PIANY is confident that the findings of such a survey would help guide the industry toward a solution that ensures comprehensive coverage for all, while maintaining financial viability for consumers and insurers alike.
Get involved
If you want to get involved with PIANY’s legislative and advocacy work, there are many ways to engage with the association:
- Participate in PIANY’s District Office Visit Program;
- Become a member of Agents Advocacy Coalition; and
Watch your PIA Northeast publications and PIA Northeast’s social-media channels for important New York updates and share them with your followers.
Danielle Caswell, Esq.
Danielle Caswell joined PIA Northeast as associate counsel in the Government & Industry Affairs Department in 2023. She earned her bachelor’s degree from New York University and her law degree from Brooklyn Law School with a particular focus on intellectual property, information, and media law. Prior to joining PIA, Danielle was an associate at a law firm in New York City where she focused primarily on intellectual property and entertainment-related transactional and litigation matters.
