Assemblyman Jeffrey Dinowitz has introduced new legislation aimed at increasing transparency in how automobile insurance companies calculate premiums, as costs for drivers in New York continue to climb well above the national average.
The proposal, sponsored in the Senate by State Sen. Jamaal Bailey (S.1655) and in the Assembly as A.10616-A, would require insurers to disclose detailed information about the methodologies and financial factors used to determine customer premiums. Companies would be mandated to file annual financial statements with the New York State Department of Financial Services (DFS), outlining their income streams, expenses and pricing criteria.
Under the bill, insurers would need to provide a comprehensive breakdown of revenue sources, including premium collections, investment income and gains from asset sales. At the same time, companies would be required to disclose operating expenses such as salaries, commissions, consulting fees, legal costs and advertising spending. The legislation also calls for insurers to itemize compensation for their 20 highest-paid employees.
In addition to financial disclosures, the measure would require companies to report data on total claims and settlements, including the number of claims resolved with and without payouts. Firms that fail to comply with the new requirements could face civil penalties. All submitted information would be made publicly accessible through the DFS website.
Dinowitz said the bill responds to growing concerns over rising insurance costs, with New York drivers paying an average of more than $4,000 annually—approximately $1,500 higher than the national average. He argued that greater transparency is necessary to help consumers better understand what drives pricing decisions.
According to Dinowitz, insurers often rely on factors beyond driving history when setting premiums, such as gender, credit scores, geographic location and homeownership status. While acknowledging that driving records should remain a key consideration, he said consumers deserve clarity when additional criteria are used.
“For many New Yorkers, owning and driving a car is not a luxury but a necessity for daily life,” Dinowitz said. “Yet when consumers request a quote, they are typically given a price without any explanation of how it was determined.”
He added that if insurers incorporate non-driving-related factors into pricing, customers should have access to sufficient information about those practices to make informed decisions about which company to choose.
