If you’ve been injured in a New York car accident recently, the rules impacting your claim likely look different than similar accidents from even a year ago. In May of 2026, Governor Kathy Hochul signed a sweeping auto insurance and tort reform package into law as part of the state’s fiscal year 2027 budget (Part EE of Chapter 58 of the Laws of 2026). The changes apply to lawsuits commenced on or after May 26, 2026 — meaning they govern cases filed from that date forward, regardless of when the crash itself happened.
Among the changes are how “serious injury” is defined, how fault is weighed against your right to recover compensation, and a new cap on pain-and-suffering damages for certain at-fault drivers.
These changes are complicated, and insurance companies are already using them to look for new ways to minimize payouts to policyholders. At Leav & Steinberg, we’re closely tracking how these reforms play out in real cases so that our clients don’t lose compensation they’re entitled to. Here’s what New York drivers, passengers, and pedestrians need to know about the changes.
What Changed in New York’s 2026 Auto Insurance Reform?
Enacted as part of the state’s fiscal year 2027 budget, the reform package (1) touched several parts of New York’s no-fault and tort system at once. The biggest changes for those injured are:
- New York eliminated the “90/180-day” category that used to let some accident victims qualify for compensation based on being unable to perform their normal duties for at least 90 of the 180 days after a crash.
- New York moved from pure comparative negligence to a modified rule for motor-vehicle cases: a claimant whose fault is greater than the defendant’s — or the combined fault of all defendants — can be barred from recovering damages.
- The reforms introduced a $100,000 cap on non-economic (pain and suffering) damages for drivers who were uninsured with a coverage lapse exceeding 30 days, driving while intoxicated or impaired by drugs or alcohol, or committing a felony at the time of the crash.
- At trial, juries now determine fault before deciding whether the serious-injury threshold is met, and prejudgment interest does not begin to accrue until both findings are entered.
As you can likely see – much of the new reform package is designed to benefit large insurance companies at the expense of injured New Yorkers, despite the governor’s claims that these reforms will reduce insurance premiums and be good overall. Thankfully, those injured still have recourse toward a settlement. Read on to better understand the changes and how you can still recover.
The 90/180-Day Rule Is Gone
Under New York’s no-fault law (Insurance Law § 5102(d)), you can only sue for pain and suffering after a car accident if your injury meets one of several “serious injury” categories. The remaining categories are:
- Death
- Dismemberment
- Significant disfigurement
- Loss of a fetus
- Fracture
- Permanent loss of use of a body organ, member, function, or system
- Permanent consequential limitation of use of a body organ or member
- Significant limitation of use of a body function or system
For years, one of those categories was the “90/180-day” rule: if your injury kept you from your usual activities for at least 90 of the first 180 days after the crash, you could qualify even without a permanent injury.
That category is now gone. Going forward, claimants who can’t meet one of the remaining categories will have a harder time meeting the serious injury threshold and might be barred from collecting for their injuries. Notably, the “significant limitation of use” and “permanent consequential limitation” categories – where most contested soft-tissue claims now live – require objective medical evidence, so this change makes early, thorough medical documentation more important than ever. If you’re in a car accident, seeing a doctor promptly and following through on treatment isn’t just good for your health – it’s what might allow you to qualify for an insurance claim.
New York Bars Recovery for Drivers Found Mostly at Fault
Previously, New York used “pure” comparative negligence, meaning an injured person could recover compensation even if they were largely responsible for a crash. In this manner, their award was simply reduced by their share of the fault.
For motor-vehicle cases, that has changed. Under the new rule (CPLR § 1411(b)), a claimant in a personal-injury action subject to Insurance Law Article 51 whose fault is greater than the defendant’s — or the combined fault of all defendants — is barred from recovery. Against a single defendant, that means being found more than 50% at fault wipes out the claim.
This is a significant shift, and it raises the stakes around how fault gets determined in the first place. Insurance adjusters have every incentive to push a client’s share of fault past that 50% line, since crossing it can wipe out a claim entirely.
Under this new rule, it becomes critical to have an attorney who deeply understands how fault is investigated and argued in New York. They should be able to take things like police reports, witness testimony, and traffic camera footage into account before you ever have to talk to an adjuster about how the crash happened.
New $100,000 Cap on Pain-and-Suffering Damages for Certain At-Fault Drivers
Separately, the reforms added Insurance Law § 5104(d), which caps non-economic (pain and suffering) damages at $100,000 for injured drivers who, at the time of the crash, were operating an uninsured vehicle with a coverage lapse exceeding 30 days, driving while intoxicated or impaired by drugs or alcohol, or committing a felony.
This is a cap, not a complete bar: affected drivers can still recover economic damages and up to $100,000 in non-economic damages. But it sharply limits what insurers have to pay in these cases — one more reason to verify your coverage and drive sober.
Fault Is Now Decided Before Serious Injury at Trial
The reforms also changed the order of operations at trial. Under amended Insurance Law § 5104(a), a jury must first determine fault – i.e., that the defendant driver acted negligently – before deciding whether the plaintiff meets the serious-injury threshold. Prejudgment interest likewise does not begin to accrue until findings on both negligence and serious injury are entered. This sequencing prevents juries from conflating severe physical harm with clear liability.
New York Insurance Reform Package – What This Means If You’re Injured in 2026
If you were hurt in a New York car accident recently, or you’re dealing with one now, please make sure to first seek medical care to get the treatment you need. Once in a stable state, you would be well advised to contact an experienced injury attorney about your case.
Some takeaways from the recent changes:
- Don’t assume a “minor” injury won’t qualify, but don’t assume it automatically will either. The categories that still count – fracture, significant limitation of use, permanent consequential limitation, disfigurement, and others – require real medical evidence, so early and consistent treatment is more important than ever before.
- Be careful about early statements to any insurance adjuster – including your own. They have a much greater incentive to get you to admit fault, and if they can push your share of fault past 50%, the new rule can bar your claim.
- If you were uninsured with a coverage lapse, impaired, or committing a felony at the time of the crash, your non-economic damages may be capped at $100,000 – another reason to get legal advice early.
- Talk to a lawyer before you sign anything or give a recorded statement. These reforms make it more important, not less, to have someone in your corner who can push back on an insurer’s version of events.
Leav & Steinberg has represented injured New Yorkers in car accident cases for decades, and we’re adapting our approach to these new rules in real time so our clients aren’t caught off guard. If you’ve been hurt in a car accident anywhere in New York, our car accident lawyers can walk you through what these changes mean for your specific case.
Talk to a New York Car Accident Lawyer Today
New York’s 2026 tort reforms are still new, and how courts apply them will keep evolving over the next year. You shouldn’t have to figure out where you stand on your own. To speak with an experienced attorney about your case, visit our contact page, or call us at +1 (347) 960-2422 to speak with an accident attorney in New York today.
Resources –
1 – Office of Governor Kathy Hochul – Auto Insurance Reform Proposals Announcement: https://www.governor.ny.gov/news/money-your-pockets-governor-hochul-highlights-proposals-bring-down-costs-vehicle-insurance-0
2 – New York State Senate – Insurance Law § 5102, Definitions (“Serious Injury”): https://www.nysenate.gov/legislation/laws/ISC/5102
3 – New York State Senate – CPLR § 1411, Culpable Conduct/Comparative Negligence: https://www.nysenate.gov/legislation/laws/CVP/1411
4 – New York State Senate – Insurance Law § 5104, Right of Recovery for Non-Economic Loss: https://www.nysenate.gov/legislation/laws/ISC/5104
5 – New York State Department of Financial Services – Auto Insurance Reform Press Release: https://www.dfs.ny.gov/reports_and_publications/press_releases/pr20260122