Claiming a better deal: Why MTA says Hochul’s auto insurance reforms will be boon for transit riders MTA Chair and CEO Janno Lieber and Gov. Kathy Hochul jointly promoted her proposal to lower auto insurance premiums as a benefit for New York City’s transit riders. During a news conference at the Mother Clara Hale Bus Depot in Harlem, both officials emphasized that the measure would save the MTA approximately $50 million annually by reducing personal injury insurance payouts. The announcement follows criticism of the proposal, which has been linked to support from big tech companies and concerns it could disadvantage crash victims. Hochul, running for reelection, framed the reform as a way to curb “skyrocketing” car insurance costs, attributing the rise in premiums to “jackpot payouts” to individuals she claimed are fraudulently exploiting the system. She argued that city residents, many of whom rely on public transit, should support the measure because the MTA could redirect funds saved from payouts toward improving transportation services. “They’re sometimes forced to pay really outrageous legal settlements, even when their own drivers are not at fault,” Hochul said. “And it’s costing us millions. So who loses? All the transit riders. Because the money spent on these payouts isn’t being invested in this system.” However, critics, including advocacy groups, have raised concerns that the reform would shift financial responsibility for crashes from drivers and insurers to victims. By narrowing the definition of “serious injuries” to exclude non-permanent injuries that prevent individuals from working for over 90 days, the legislation could limit compensation for crash victims.#mta #janno_lieber #kathy_hochul #mother_clara_hale_bus_depot #transportation_alternatives
