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A proposal by New York Gov. Kathy Hochul would lower the cost of Metropolitan Transportation Authority’s (MTA) auto insurance by $48 million annually, according to MTA analysis.
The reform package includes seven changes that would modernize auto liability by limiting disproportionate responsibility for certain aspects of damage awards. This means MTA would not be forced to pay “jackpot” settlements for crashes in which the agency’s buses were not primarily to blame. Over time, MTA would be able to invest the savings in operating subways, buses and railroads.
“Gov. 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,” New York State Department of Transportation Commissioner Marie Therese Dominguez said. “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.”
The reforms also would generate as much as $25 million in annual savings for the more than 130 transit agencies that operate outside the MTA region and collectively serve hundreds of thousands of riders daily.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.