ALBANY, N.Y. (WNYT)- Drivers across New York are paying some of the highest car insurance rates in the country and state leaders say fraud is a major reason why.

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Governor Kathy Hochul is now pushing a proposal aimed at cracking down on insurance fraud and lowering costs, as new concerns emerge about how the issue is also impacting first responders.

Speaking from the Westmere Volunteer Fire Department in Guilderland, Hochul outlined a plan that would make it easier to prosecute staged accidents, increase penalties for fraud, and reform state laws to reduce abuse within the system. The proposal is part of ongoing state budget negotiations.

“Staged accidents” — crashes that are intentionally caused to collect insurance payouts — have become a growing problem across New York. According to state data, there were nearly 1,700 staged crashes reported in a single year, along with more than 43,000 suspected fraud cases in 2025. That marks an 80 percent increase over the past five years.

The financial impact is significant. New Yorkers pay more than $4,000 a year on average for car insurance — roughly $1,500 higher than the national average.

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Local insurance companies say they’re seeing the effects firsthand.

“With increased fraud, our policyholders are paying more because of the fraud payouts,” said Samantha Quinn, vice president of operations at Northeastern Insurance in Latham.

Quinn added that fraudulent activity appears to be rising, with some claims being manipulated or misrepresented, contributing to higher costs across the board.

“We do see it,” Quinn said. “The last couple years, I do believe it’s gone up a lot.”

Fire service leaders say the problem goes beyond finances.

“When premiums rise, it creates a financial burden for volunteer first responders,” said Bill Streicher, president of the New York State County Fire Coordinators Association.

They also warn that staged crashes can put emergency crews in dangerous situations.

“We see the real-world consequences of dangerous behavior on our roads,” said Eugene J. Perry Jr., president of the Firefighters Association of the State of New York. “Staged auto accidents don’t just raise insurance costs — they put lives at risk, including the lives of our emergency responders and innocent motorists.”

Hochul says her proposal is designed to protect drivers while reducing fraudulent claims and legal abuse. She also pointed to other states, like Florida, where similar reforms have led to lower insurance premiums.

Insurance industry leaders say the changes could help stabilize the system over time.

“I do believe it will, over time, help stabilize the insurance industry and hopefully lower premiums going forward,” Quinn said.

The proposal still needs approval from state lawmakers before it can take effect. For now, it remains part of ongoing budget discussions in Albany.